MTEF: FEC Approves N6tr Expenditure For 2016 - Politics (3)

MTEF: FEC Approves N6tr Expenditure For 2016 - Politics (3) - Nairaland

Nairaland Forum › Nairaland General › Politics › MTEF: FEC Approves N6tr Expenditure For 2016 (30828 Views)

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by Nobody: 1:30pm On Dec 08, 2015

chinchum:
i will recommend 30 dollars /barrel as budget benchmark, instead of 38 dollars per barrel. As at today, oil is now under 40 dollars /barrel, it has achieved a 11 year low(since 2004), and i see it going towards 25 dollars/barrel, iran will be pumping more fuel in to the oil export market in 2016. Nigeria must look beyond oil to a great extent in 2016.

They are being optimistic. No mind them. They forget to plan for the worst and hope for the best.

Also we need to get away from this attachment to oil. We don turn oil-wrapper. Like I will say, the number of Charging points for electric cars being constructed in public parking lots in Europe is alarming. I fear for my country. Now they are planning to reduce global warming. While this seems tall, it cannot be disregarded. Reducing emissions will one way or another impact the use of hydrocarbons. The more it becomes irrelevant, the less the value and the more Nigeria will suffer financially.

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by baralatie(m): 1:33pm On Dec 08, 2015

Bevista:
You did not read anywhere in the report (the Vanguard link) where it said that we operating a budget deficit of N1.075T?

I saw it
It is clear,the initial proposal is at $65 per barrel and now it was reduced to $53 per barrel and yet the fed expenditure is still at #4.4 trillion the deficient will be at that range and it is even more now with subsidy sef.

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by NavierStokes(m): 1:33pm On Dec 08, 2015

deking:
@ $38 per barrel and 2.2million b/d considering 260 days the Govts daily earnings from oil will be

$38 X 2.2M X 260 =$21736 Million

@ N196 = $1

This gives $21736 Million X 196 = N4260256 million i.e N4.260256T

With this figures and considering the other loopholes that have been blocked this is more than a possible feat.

The government doesn't have to borrow if the price of petrol continues to hover around the 43$ benchmark.

Factor in IOCs share, applying a derating factor of say 0.6 and then all other operating expenses incurred by operators

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by apatuku: 1:34pm On Dec 08, 2015

SeverusSnape:
I thought the set of confused people said it gonna be 8 trillion

I think u are the most confused person.

1 Like

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by Nobody: 1:34pm On Dec 08, 2015

I am more interested in recurrent vs capital expenditure ratio.

1 Like

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by Softhands(m): 1:34pm On Dec 08, 2015

Elslim:
wailers food is ready

your father, our mentor...zoombie!

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by Bevista: 1:35pm On Dec 08, 2015

baralatie:
I saw it
It is clear,the initial proposal is at $65 per barrel and now it was reduced to $53 per barrel and yet the fed expenditure is still at #4.4 trillion the deficient will be at that range and it is even more now with subsidy sef.

I take it that the issues we have in our varying opinions have been reconciled.

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by divinehand2003(m): 1:35pm On Dec 08, 2015

dason4life:
The remaining 2 trillion was to be funded by MTN fine, but they didn't pay
When they pay we will balance it to 8 trillion

Lol. I agree with you but MTN might declare bankruptcy at the end. So we might never see the 2 trillion you are banking on.

1 Like

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by baralatie(m): 1:37pm On Dec 08, 2015

seunmsg:
Oil is not the only source of funding the national budget. And besides, GEJ never remitted all the earnings from crude sale during his regime. Go and pick up a copy of PWC's report on the forensic audit of NNPC and digest the details. I don't have the time to argue about what is obvious.

What is obvious?
That you have difficulty meeting up with a #4.4trillion budget and now there is a federal expenditure of #6 trillion

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by miqos02(m): 1:38pm On Dec 08, 2015

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by baralatie(m): 1:39pm On Dec 08, 2015

Bevista:
I take it that the issues we have in our varying opinions have been reconciled.

What issues!
4.4 +1= 5.4 fed budget
Forgetting you have problem looking for 4.4trillion revenue

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by lacidi: 1:41pm On Dec 08, 2015

deking:
@ $38 per barrel and 2.2million b/d considering 260 days the Govts daily earnings from oil will be

$38 X 2.2M X 260 =$21736 Million

@ N196 = $1

This gives $21736 Million X 196 = N4260256 million i.e N4.260256T

With this figures and considering the other loopholes that have been blocked this is more than a possible feat.

The government doesn't have to borrow if the price of petrol continues to hover around the 43$ benchmark.

You forgot that the Federal Government does not own 100% of the oil revenue? The Oil companies and the states also share in the oil revenue. So your calculation is wrong.

4 Likes

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by sharpman1(m): 1:43pm On Dec 08, 2015

To put the proposal in perspective:

1. The FGN has proposed a N6trn budget for the year 2016,

2. This is up by about N1.5trn over 2015

3. However, when you include the recently approved supplementary budget, it’s an increase of about N1trn.

4. The capex plan is about N1.8trn (triple last year’s)

5. The Oil price benchmark used is $38.

6. The FGN has also approved and submitted a Medium Term Economic Framework (MTEF) to the National Assembly.

7. Finally, we await further details on both the budget and the MTEF.

1 Like

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by Bevista: 1:44pm On Dec 08, 2015

deking:
@ $38 per barrel and 2.2million b/d considering 260 days the Govts daily earnings from oil will be

$38 X 2.2M X 260 =$21736 Million

@ N196 = $1

This gives $21736 Million X 196 = N4260256 million i.e N4.260256T

With this figures and considering the other loopholes that have been blocked this is more than a possible feat.

The government doesn't have to borrow if the price of petrol continues to hover around the 43$ benchmark.

Your analysis does not cover the full picture.

First of all, Production never sleeps - it happens 24/7 except there is a shutdown. I am sure the government has already made necessary allowance for such occurrences before arriving at the average 2.2MBPD. Secondly, the money from crude goes in the Federation Account for sharing to all tiers of government. The FG component will be just around 54%. You also have to take into consideration Profit Sharing Contracts (PSCs) and Joint Venture Contracts (JVCs) with the IOCs.

My point is that, if that was all the money we had, we would declare bankruptcy and seek for help or atleast be sure that over half the budget will be funded by debt. Such debt will attract very high interest since most investors would be weary about our capacity to repay.

1 Like

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by OrlandoOwoh(m): 1:44pm On Dec 08, 2015

Meriekriss:
Really? Despite last administration proposing 5T,they still had deficit of over 1T despite higher price of crude oil then.

I just think one should be realistic when proposing sha.. It's easier to propose.. Implementation is the main issue..

Even when there is economic bouyancy and oil boom budgetary figures are usually proposed when going to the National Assembly. Hold your peace.

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by nameo: 1:44pm On Dec 08, 2015

deking:
@ $38 per barrel and 2.2million b/d considering 260 days the Govts daily earnings from oil will be

$38 X 2.2M X 260 =$21736 Million

@ N196 = $1

This gives $21736 Million X 196 = N4260256 million i.e N4.260256T

With this figures and considering the other loopholes that have been blocked this is more than a possible feat.

The government doesn't have to borrow if the price of petrol continues to hover around the 43$ benchmark.

OLODO!!!

Am sorry but I had to say that

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by AnanseK(m): 1:45pm On Dec 08, 2015

divinehand2003:
8 trillion was initially proposed For 2016, now it's 6 trillion during the FEC meeting presided over by PMB. After the review by the NASS, it might further slump down to 4 trillion. We are watching in 3D as usual.

Can you remind me how much was missing under Deziani's watch?

1 Like

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by Bevista: 1:46pm On Dec 08, 2015

baralatie:
What issues!
4.4 +1= 5.4 fed budget
Forgetting you have problem looking for 4.4trillion revenue

Do I have to remind you as to why you quoted my in the first place? Were you not trying to counter my point that the FG did not borrow to fund the 2015 budget?

I'm done. Have a great day.

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by sammhi(m): 1:46pm On Dec 08, 2015

Bevista:
I'll help with some figures of the budget proposals of the FG from 2011, just to provide some perspective:

2011
Budget Proposed - N4.97Trillion
Oil Price Used - $75
Oil Production - 2.3mbbls/day

2012
Budget Proposed - N4.75Trillion
Oil Price Used - $70
Oil Production - 2.48mbbls/day

2013

ode..so the excess crude account was for what ? go check how much was shared from the excess crude account....your ignorance knows no bound....
was naija dry like this in GEJ period? please stop sentiments and face fact
Budget Proposed - N4.98Trillion
Oil Price Used - $79
Oil Production - 2.53mbbls/day

2014
Budget Proposed - N4.91Trillion
Oil Price Used - $75
Oil Production - 2.39mbbls/day

2015
Budget Proposed - N4.49Trillion
Oil Price Used - $53
Oil Production - 2.28mbbls/day

2016
Budget Proposed - N6.0Trillion
Oil Price Used - $38
Oil Production - 2.2mbbls/day

I am interested in seeing the revenue details from the budget to know exactly how government intends to fund the budget. My first instinct, though, is that leackages in revenue generating agencies (like NCS, NPA, NNPC, etc) have been blocked and all funds channeled into the TSA. That the government has been able to come up with that size of budget - even in the face of declining oil prices & lower oil production levels - without depreciating the official exchange rate of the Naira - is truly remarkable.

How GEJ (with benchmark oil price of over $75 throughout his term) was not able to come up with a budget of up to N5T beggars belief. One can now say without equivocation that, had PMB met an oil price of $75, we would be talking about a N10T budget. Kindly note that during GEJ term, oil price was actually higher ($105) than the budget benchmark and yet our Foreign Reserves and ECA was declining.

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by Meriekriss: 1:46pm On Dec 08, 2015

OrlandoOwoh:
Even when there is economic bouyancy and oil boom budgetary figures are usually proposed when going to the National Assembly. Hold your peace.

You sure understand what is been discussed? Who said a proposal isn't drawn out? Lock your peace..

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by sammhi(m): 1:48pm On Dec 08, 2015

Bevista:
I'll help with some figures of the budget proposals of the FG from 2011, just to provide some perspective:

2011
Budget Proposed - N4.97Trillion
Oil Price Used - $75
Oil Production - 2.3mbbls/day

2012
Budget Proposed - N4.75Trillion
Oil Price Used - $70
Oil Production - 2.48mbbls/day

2013

am sure you have never had of excess crude account ? go and check how much was shared from that account each year? also, the SWF ...
was naija dry like this in GEJ period? please stop sentiments and face fact
Budget Proposed - N4.98Trillion
Oil Price Used - $79
Oil Production - 2.53mbbls/day

2014
Budget Proposed - N4.91Trillion
Oil Price Used - $75
Oil Production - 2.39mbbls/day

2015
Budget Proposed - N4.49Trillion
Oil Price Used - $53
Oil Production - 2.28mbbls/day

2016
Budget Proposed - N6.0Trillion
Oil Price Used - $38
Oil Production - 2.2mbbls/day

I am interested in seeing the revenue details from the budget to know exactly how government intends to fund the budget. My first instinct, though, is that leackages in revenue generating agencies (like NCS, NPA, NNPC, etc) have been blocked and all funds channeled into the TSA. That the government has been able to come up with that size of budget - even in the face of declining oil prices & lower oil production levels - without depreciating the official exchange rate of the Naira - is truly remarkable.

How GEJ (with benchmark oil price of over $75 throughout his term) was not able to come up with a budget of up to N5T beggars belief. One can now say without equivocation that, had PMB met an oil price of $75, we would be talking about a N10T budget. Kindly note that during GEJ term, oil price was actually higher ($105) than the budget benchmark and yet our Foreign Reserves and ECA was declining.

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by nameo: 1:49pm On Dec 08, 2015

Bevista:
I'll help with some figures of the budget proposals of the FG from 2011, just to provide some perspective:

2011
Budget Proposed - N4.97Trillion
Oil Price Used - $75
Oil Production - 2.3mbbls/day

2012
Budget Proposed - N4.75Trillion
Oil Price Used - $70
Oil Production - 2.48mbbls/day

2013
Budget Proposed - N4.98Trillion
Oil Price Used - $79
Oil Production - 2.53mbbls/day

2014
Budget Proposed - N4.91Trillion
Oil Price Used - $75
Oil Production - 2.39mbbls/day

2015
Budget Proposed - N4.49Trillion
Oil Price Used - $53
Oil Production - 2.28mbbls/day

2016
Budget Proposed - N6.0Trillion
Oil Price Used - $38
Oil Production - 2.2mbbls/day

I am interested in seeing the revenue details from the budget to know exactly how government intends to fund the budget. My first instinct, though, is that leackages in revenue generating agencies (like NCS, NPA, NNPC, etc) have been blocked and all funds channeled into the TSA. That the government has been able to come up with that size of budget - even in the face of declining oil prices & lower oil production levels - without depreciating the official exchange rate of the Naira - is truly remarkable.

How GEJ (with benchmark oil price of over $75 throughout his term) was not able to come up with a budget of up to N5T beggars belief. One can now say without equivocation that, had PMB met an oil price of $75, we would be talking about a N10T budget. Kindly note that during GEJ term, oil price was actually higher ($105) than the budget benchmark and yet our Foreign Reserves and ECA was declining.

You do remember Osun State right??

1 Like

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by OrlandoOwoh(m): 1:50pm On Dec 08, 2015

Meriekriss:
You sure understand what is been discussed? Who said a proposal isn't drawn out? Lock your peace..

It's obvious you don't understand what you're trying to say.

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by sammhi(m): 1:51pm On Dec 08, 2015

Bevista:
I'll help with some figures of the budget proposals of the FG from 2011, just to provide some perspective:

2011
Budget Proposed - N4.97Trillion
Oil Price Used - $75
Oil Production - 2.3mbbls/day

2012
Budget Proposed - N4.75Trillion
Oil Price Used - $70
Oil Production - 2.48mbbls/day

2013
Budget Proposed - N4.98Trillion
Oil Price Used - $79
Oil Production - 2.53mbbls/day

2014
Budget Proposed - N4.91Trillion
Oil Price Used - $75
Oil Production - 2.39mbbls/day

2015
Budget Proposed - N4.49Trillion
Oil Price Used - $53
Oil Production - 2.28mbbls/day

2016
Budget Proposed - N6.0Trillion
Oil Price Used - $38
Oil Production - 2.2mbbls/day

I am interested in seeing the revenue details from the budget to know exactly how government intends to fund the budget. My first instinct, though, is that leackages in revenue generating agencies (like NCS, NPA, NNPC, etc) have been blocked and all funds channeled into the TSA. That the government has been able to come up with that size of budget - even in the face of declining oil prices & lower oil production levels - without depreciating the official exchange rate of the Naira - is truly remarkable.

How GEJ (with benchmark oil price of over $75 throughout his term) was not able to come up with a budget of up to N5T beggars belief. One can now say without equivocation that, had PMB met an oil price of $75, we would be talking about a N10T budget. Kindly note that during GEJ term, oil price was actually higher ($105) than the budget benchmark and yet our Foreign Reserves and ECA was declining.

ode...so you have never heard of excess crude acccount ? go check how much was shared to each state from that account...so with what were they paid increased minimum wage ? and SWF
Was naija dry like this in GEJ period? please leave sentiments and face facts

6 Likes

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by vinceton: 1:52pm On Dec 08, 2015

Hmn! At last. Let's see how it goes.

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by Bevista: 1:53pm On Dec 08, 2015*

nameo:
You do remember Osun State right??

I'm not holding brief for the government, but simply expressing an opinion - which could be wrong.

The IGR dynamics of the Federal Government is completely different from that of Osun State. The country has been generating revenue, but has always been lost through the now famous "loopholes" and "leakages". Osun does not even have the capacity to generate revenue, they were simply depending on FAAC allocation which is largely dependent on Crude oil price.

2 Likes

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by baralatie(m): 1:53pm On Dec 08, 2015

Bevista:
Do I have to remind you as to why you quoted my in the first place? Were you not trying to counter my point that the FG did not borrow to fund the 2015 budget?

I'm done. Have a great day.

HahHahahaha

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by Bevista: 1:56pm On Dec 08, 2015*

sammhi:
ode...so you have never heard of excess crude acccount ? go check how much was shared to each state from that account...so with what were they paid increased minimum wage ? and SWF
Was naija dry like this in GEJ period? please leave sentiments and face facts

If I were you, instead of focusing my energy on abusing others, I would spend more time developing my ill-developed brain so I can articulate myself better when issues of superior intellect are being discussed.

6 Likes

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by nickxtra(m): 1:58pm On Dec 08, 2015

SeverusSnape:
I thought the set of confused people said it gonna be 8 trillion

Now that they have have cut it down and approved 6trillion NAIA, is there anything you gonna do about it?

2 Likes

Re: MTEF: FEC Approves N6tr Expenditure For 2016 by divinehand2003(m): 1:59pm On Dec 08, 2015

AnanseK:
Can you remind me how much was missing under Deziani's watch?

Uncountable because we don't even know how much Nigeria generates from IGR from all those federal govt agencies, all taxes and crude oil sales during GEJ's administration. No good account was kept.

1 Like

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