Adelani Adepegba, Dennis Naku and Adeyinka Adedipe

Nigeria should subsidise production not consumption, says CRS
Lack of local refining capacity behind persistent subsidy – Gombe
The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Monday admitted that Nigeria’s economy was facing a difficult time, saying states must improve their internally generated revenues.

Ahmed, who stated this in an interview on a daily breakfast show on the Nigerian Television Authority, Good Morning Nigeria, stated that the money shared at the March Federation Account Allocation Committee was short of N50bn.
The minister was speaking on a controversy generated by a claim by the Edo State Governor, Godwin Obaseki, that the Central Bank of Nigeria printed N60bn in March to augment the money shared at March FAAC.

But the minister and the CBN Governor last week dismissed Obaseki’s claim.
In the interview on the NTA on Monday, the finance minister stated the country’s economy was stabilising from the recession, which the country exited a few months ago.
She, however, added, “These are very difficult challenging times because revenues are low and the demand for expenditures are very high understandably because we have to keep intervening to make sure the pandemic is contained as well as the economic impact it has caused.

“In our case in Nigeria, the crash of the crude oil prices really hit us very hard in terms of revenue. We have very low revenues, we have very high expenditures. What we have done so far is just to provide some stability to make sure salaries are paid, pensions are received every month; that we send funds to the judiciary and the legislature; that we meet our debt service obligations.

“That’s what we are doing. It also means we have had to borrow more than we have planned before the COVID-19 started because we need to still continue to invest in infrastructure using our national budget. We borrowed to invest in key projects such as roads, rail, airports, seaports and several other investments that are required in health and in education and upgrading the social standards and quality of life of our people and Nigeria is not unique as several countries of the world went into recession.

“Almost every other country has had to borrow more than it planned. It means we expanded our deficit very fast in 2020. 2021 is a year that we see as the year of recovery.”
According to him, government hopes to achieve a growth of three per cent in 2021, adding that some of the multilateral institutions are putting it at 2.5 per cent.

She stated, “It is a very difficult time. I can explain to you how difficult it is, not just for the Federal Government but also for the states. We see increasing reductions in our FAAC revenues; FAAC revenues are the revenues that we put together every month, that are collected from both oil and non-oil sectors from the collection of the NNPC (Nigerian National Petroleum Corporation) the FIRS (the Federal Inland Revenue Service) and all other revenues collection agencies.

“ So, FAAC reduces and whenever FAAC reduces, it is a very difficult situation and in the past one year, we have tried to fall back on some specific accounts that are meant to be saved; savings that when you have such a situation, you fall back on the resources and augment.

“So, we take funds based on Mr President’s approval either from Excess Crude or Stabilisation Account or in some cases, President approved for us to take funds from LNG (Liquefied Natural Gas) dividends. In the month of March, we had a shortfall of FAAC that was about N50bn; we didn’t have enough accrued in any of those accounts other than some N8.5bn that we took from exchange rate differential account so we added that and we ended up with the FAAC of N605bn.

“An average FAAC that is healthy for us is N650bn, so it means we had a shortfall of about N50bn. The states to be honest wanted us to go and borrow from the central bank to augment FAAC.”

She stated that advice by states was rejected, adding that the three levels of government were asked to manage what was available.
“So, it was very surprising when we had a sitting governor saying that the CBN had printed money for FAAC. That was very unfortunate because it was not true. The FAAC was N60bn, the FAAC information is published so you can see the revenue contributed by each of the agency; that is what we shared.

“The states would have wanted us to borrow and augment but we didn’t do that. And we would make sure we don’t have to do that because it’s time all of us to go back and do more. A lot of states are trying to do that in terms of increasing the performance of their internally generated revenues, but it is difficult to do that at a time when growth is very, very slow.”

“Going forward, what we have been doing in the ministry of finance, budget and national planning is a plan that we have put in place to grow revenues. Our revenues have been growing but because the expenditures have been growing at a pace that is much faster than the revenue growth, the impact is not felt.

Wike canvasses state ownership of minerals, govt’s royalty

Governor of Rivers State, Nyesom Wike, on Monday said dependence on oil was one of the problems of the country.
He, therefore, advocated that the federating units in Nigeria should be allowed to develop and operate their respective minerals and pay royalty to the Federal Government.

He said this had become pertinent because the Federal Government which unilaterally controlled the country rich minerals endowment had failed to translate the minerals wealth into overall economic development.

Wike made this assertion when the Minister of State for Mines and Steel Development, Uchechukwu Ogah, paid him a visit at the Government House, Port Harcourt.
The governor, in a statement by his media aide, Kelvin Ebiri, maintained that in order for the country to benefit from its vast endowment, the Federal Government should concentrate on formulation of policies that would facilitate an improvement in the governance of the mining sector to improve social welfare of the citizens.

“The Federal Government is carrying so much load that it is not supposed to carry. Allow states to develop these minerals and pay royalty to the Federal Government. That is the way it’s supposed to be.”

“It is very important for people to know that part of the problem in this country is that everybody is depending on oil, when we are also supposed to look at other minerals. Minerals play a great role in terms of raising revenue for any country. So, our overemphasis on oil has reduced our impact on other minerals,” Wike stated.

He noted that if the country fully harness the gold deposit in Zamfara as well as other minerals in other states of the federation, the country would make a lot of revenue from these minerals that can accelerate her development.
Wike lamented that despite the possibility of the Ajaokuta Steel Company project generating huge revenues for the country and creating not less than 10,000 jobs, the Federal Government for political reasons, had failed to actualise the country’s aspiration to become a major player in the global steel industry.

The Minister of State for Mines and Steel Development, Uchechukwu Ogah, told the governor he was in the state to share with him the vision and policy focus of the Federal Government for the development of the nation’s solid mineral resources.

According to him, his visit is to solicit for the support and partnership of the Government of Rivers State in ensuring the orderly and efficient exploitation of huge deposits of silica sand, glass sand and clay in the state.

Also on Monday, the Edo State Governor, Mr. Godwin Obaseki, said the Federal Government should stop financial gynamistics and face the reality that dependence on oil could not take the country far.

Obaseki, who stated this in a statement on Monday, called for a quick diversification of the nation’s economy to increase non-oil revenue.
Obaseki said, “Before the civil war, we had no crude oil. The regions relied on the resources that they had and the government was run based on taxation, which was derived from the regions and production, particularly agricultural production in the regions.

“In the last 40 years or so, crude oil came and replaced those economic activities and earnings. So, we now run a federation relying almost exclusively on crude oil. For a country that is still hoping on crude oil, it’s only a question of time and pretending and doing all sorts of interesting and financial gymnastics to keep it going; it’s only a question of time.”

Noting the need for leaders to listen and work, always, in the interest of the people, Obaseki said, “When they say government, what they really mean is us; it’s about how we engage with the citizens.

“The people in government think they are better and know more than the citizens. When you say something, they disagree with you because they think they are in power and know more than you.
“We; officials of government, civil servants and politicians, because we are government, think that we know better than the people. But it’s a fallacy, because it’s the taxes these people pay from their own economic activities that will sustain us going into the future.”

“It is their sweat that will pay our salaries; they cannot be foolish for them to be producing the resources that keep us. Therefore, our emphasis must be on them; we have to keep them alive.
“That is why the government must create an enabling environment for the citizens to thrive, so that from their wealth, the government can be sustained,” he added.

https://punchng.com/fg-admits-revenues-crashing-says-nigeria-faces-hard-times/

A

Gradually, We are getting there.

This is no news and its not surprising. The Great Okonjo Iweala saw it coming over 6 years ago.

This calls for celebration. We making progress.

https://www.premiumtimesng.com/business/171145-brace-tougher-times-ahead-okonjo-iweala-tells-nigerians.html

And the stories continues, action is better than stories, we've heard enough

You can suppress the truth but only for a short while.

The truth will always Trump the lies.

The only thing holding nigeria is niger delta ,if niger delta militants start attacking oil facilities .Nigeria is done for.
They wont have any money to pay even for soldiers .
Forget all the online bravado exhibited by deluded patriots , Nigeria is a failed state or on vege of disintegration.

Now is no time for excuses. those in government needs to think outside the box to keep things going.

Poor management

Ahmed0336:
Now is no time for excuses. those in government needs to think outside the box to keep things going.

People that cant think on their own, how will they now be able to think outside the box, the country is completely finished.

The Country is completely wrecked, but that doesn't stop these politicians and top government agencies from embezzlement and corruption.

You mean something harder than what we are going through now.

This is one big problem we have. Subsidizing consumption. I have said it for years and I am so sure about it. The same leaders who acknowledge subsidizing production is better will do the opposite once they have some substantial funds to spend again.
They are busy sharing money to impress and stimulate the economy in the shortest possible way.

understatement .... nigeria is sinking

Agreed this covid 19 affected many countries negatively

But this was something that would could have braced easily if we had prepared for it during the time of plenty

But we are only interested in now now or what can I get from it , forgetting that tomorrow is not far away

With the massive corruption going on, I wonder how long this country can hold on

AllenSpencer:
Gradually, We are getting there.

This is no news and its not surprising. The Great Okonjo Iweala saw it coming over 6 years ago.

https://www.premiumtimesng.com/business/171145-brace-tougher-times-ahead-okonjo-iweala-tells-nigerians.html

Hmmmmm, this is deep!

The Excess Crude Account was looted dry.
foreign reserves drawn down.
Federation Account, emptied.
We made the highest revenue in the history of our nation, But they still borrowed money to pay salaries!!!
And the economy was set on an irreversible path to recession.
NEVER AGAIN will our nation be that unfortunate.

We will get over this perilous time together in our nation.
Slow and steady we will get to the country of our dreams.
Nigeria will be great in our lifetime.
God bless Nigeria.

tuoyoojo:
Agreed this covid 19 affected many countries negatively

But this was something that would could have braced easily if we had prepared for it during the time of plenty

Time of plenty.....?
Hmmmmm, this is deeper!

We Rise!

People like mynd helinues sinplyleo, manabbqgrills onochie , Tinubu etc. Have finally winked Nigeria.

It's not Buhari

Most Nigerians are fed up, personally am fedup

When merit & intelligence is sacrificed on the alter of quota system, this is always the end result.
"You people said you have Ngozi okonjo-iweala & Kemi adeosun," the Quota system & Parasitic region said they have Zainab Ahmed. Crass incompetence oozes around & all over her

capatainrambo:
People like mynd helinues sinplyleo, manabbqgrills onochie , Tinubu etc. Have finally winked Nigeria.

It's not Buhari

Can't you people make your comments without seeking out authentication?

This is becoming boring and stale

AllenSpencer:
Gradually, We are getting there.

This is no news and its not surprising. The Great Okonjo Iweala saw it coming over 6 years ago.

This calls for celebration. We making progress.

https://www.premiumtimesng.com/business/171145-brace-tougher-times-ahead-okonjo-iweala-tells-nigerians.html

Which one is great Okonjo Iweala, they destroyed the Nation just like APC is doing and you call her great.

Don't be deceived Bro

helinues:




Can't you people make your comments without seeking out authentication?

This is becoming boring and stale

shut up there... all they you support terrorists what do expect ?

You will get your own share of the problems. You, sarki and that palm wink guzzler called onochie. Such vile people

Good. They should start cutting cost of governance starting from the ministers and legislooters.

When an individual spends money lavishly rather than saving and investing same, the end result are times like this. The average citizens of Nigeria are financially reasonable ones that try as much as possible to live within their means. Despite the difficulties, many have been able to own houses and afford for 'emselves the most basic things of life, even if grossly inadequate. That is why Nigeria has not seriously gone the way of Venezuela earlier than now: it is more of the efforts of the citizenry rather than the government. Most homes engage in some level of sustenance/subsistence agriculture and that has been able to keep hunger at bay. The few that have enough resources go into commercial farming, increasing the food capacity and earning a few more money for 'emselves in the process. About three months ago, two street people have called me for favour that I allow 'em use a few of my undeveloped plots to farm, a request which I eagerly obliged.

Even Nigerians in diaspora did not take the back seat. They have continuously played their part to keep oiling the sustenance of their folks back home. This they do by the dollar remittances to their families and doing so indirectly boost the dollar supply that has kept the naira reasonable to some extent.

Sadly this honourable trend of Nigerians farming to sustain 'emselves had to be destroyed by the government (the chief culprit in all these mess) by allowing Fulani herdsmen to attack farmers' crops and kill any of 'em that disagrees.

The chunk of the avaricious lifestyle that brought us to this level is done by the political class. They are the ones that loot the treasury to fund lifestyles overseas, carrying our common patrimony into the hands of other countries, destroying the home while developing those other countries economy in the process.

The problem started with the leaders/politician, it has continued with them being alive and the problem will definitely end with them being dead.

When a home faces financial crunch, the father and/mother cut down on their avaricious lifestyles for the time being. Much less of parte after parte, much less of owanbe, much less exotic foods and lifestyle while they concentrate more on using the limited income to sustain their family's basic needs of life - upkeep/feeding/shelter and their children's/ward's education. They have in mind that nothing lasts forever and the downtime will soon be over to a time things will become adequate again.

I hope those hoes/prostitut3s and criminals at Aso Rock know this simple life approach.

Trying to justify why they printed money in Disguise.
Obeseki won't be lying because i believe he has some ear piece inside the central bank.
Dear Nigerians, Brace up for hard time ahead.

Not hard time,harder time ,we have been be in hard time
Fellow country men,brace yourselves,crash landing,next time don't collect money for vote,this is the outcome and punishment for it,just that our children are and will suffer for this they know nothing of

You all need to watch the CBN governor struggling, stammering and sweating profusely when he was asked how bad the economy was and if truly 60B naira was printed as alleged by obaseki.


That was when I knew it was over for the country. One could see how tensed and nervous he was.

Nigeria is finished.

Take it or leave it.

It annoys me when people still mention Nigeria as a "country"
Nigeria is long gone, wat we av now is just a group of people being forced to stay aboard a sinking ship.
It's a real shame to be a Nigerian.

capatainrambo:
shut up there... all they you support terrorists what do expect ?

You will get your own share of the problems. You, sarki and that palm wink guzzler called onochie. Such vile people

Why not write in pidgin.. Please don't give NL's unnecessary headache this morning

Obaseki was right.Nigeria is bankrupt and big time inflation hence recession has creeped in and the chronic liars as usual are frantically trying with utter futility to deny it as usual. This is the kind of abracadabra/voodoo economy they are running. Nigerians brace for impact.

Instead of them to be accountable, own up and resign for deceiving a nation even with glaring truth staring them in the eyes, they resort to denial like the subsidy they have been fraudulently paying for years thinking they are deceiving anyone except themselves.

Now that everywhere savings was done is now depleted and empty please how do u arrange for April FAAC sharing cos it's already here. At least Obaseki got it right that about N60billion was needed to bring the March own up to speed to N650 billion though u are telling us u only asked d States to manage d N605 billion u were able to assemble. Only time will still set out d truth but for now how do you pay April