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Reps Okay $75 Oil Benchmark Price, 2.06mbpd, NGN1400/USD Exchange Rate

Published

5 months ago

November 27, 2024

By Gloria Ikibah

The House of Representatives has adopted the projected oil benchmark prices at $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027, respectively.

This according to Chairman House committees on Finance and National Planning, and Economic Development, Rep. James Faleke, is aimed at providing a stable foundation for the country’s budget and economic planning.

The report also projects a significant increase in domestic crude oil production.

The projected production levels are 2.06, 2.10, and 2.35 million barrels per day for 2025, 2026, and 2027, respectively.

Other key projections include a GDP growth rate of 4.6%, 4.4%, and 5.5% for 2025, 2026, and 2027, respectively. The projected exchange rate is NGN1400/USD for the same period. Inflation rates are projected at 15.75%, 14.21%, and 10.04% for 2025, 2026, and 2027, respectively.

The 2025 Budget proposes spending of NGN47.9 trillion, with NGN34.82 trillion retained and new borrowings of NGN9.22 trillion.

Debt service is valued at NGN15.38 trillion, while pensions, gratuities, and retirees’ benefits stand at NGN1.443 trillion.

The report also highlights concerns over the non-remittance of operating surpluses into the Federation Account by the NNPC, as well as the failure of some revenue-generating agencies to comply with the Fiscal Responsibility Act.

“The three-year projections for domestic crude oil production had a significant increase from 1.78mbpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027.

“Some critical Agencies such as NNPC, NLNG, Immigration Services and others that are relevant to the attainment of set revenue targets engage in Public Private Partnership and Joint Venture

Arrangements that are inimical to the revenue growth of the Country.

“Historical non-remittance of operating surpluses into the Federation Account by the NNPCL due to what it called under recovery with the claim that the federating units owed it the sum of Ten Trillion Naira.

“The GDP growth rate is projected at 4.6%, 4.4% and 5.5% for years 2025, 2026 and 2027 respectively. The projected exchange rate which stands at NGN1400/USD for years 2025, 2026 and 2027.

“Inflation rates projections are 15.75%, 14.21% and 10.04% for 2025, 2026 and 2027; following the criteria in the overview of the framework for revenues and expenses, the 2025 FGN Budget proposed spending stands at NGN47.9 trillion, of which NGN34.82 trillion was retained. New borrowings stood at NGN9.22 trillion which constitutes both domestic and foreign borrowings.

“Debt service was valued at NGN15.38 trillion; pensions, gratuities and retirees’ benefits stood at NGN1.443 trillion and fiscal deficit at NGN13.08 trillion.

“Capital expenditure is projected at NGN16.48 trillion which is exclusive of transfers; statutory transfers stand at NGN4.26 trillion; Sinking Fund is projected at NGN430.27 billion.

‘Total recurrent (non-debt) is projected at NGN14.21 trillion; special intervention for recurrent and capital is pegged at NGN200 billion and NGN7 billion respectively.

“That the existing liabilities and debt obligations are largely responsible for increasing debt profile of the Country.

“Most revenue generating agencies violate the Fiscal Responsibility Act due to the lack of punitive provisions in the Act. Noncompliance with the Nigerian Export Supervision Scheme (NESS) Act by relevant government agencies, specifically focusing on the inspection and monitoring of oil and gas exports as well as non-oil exports.

The committees findings also Identified systemic gaps and irregularities in the operations of the Import Duty Exemption Certificate (IDEC); and that the Federal Government Ministries Departments and Agencies (MDAs) as well as the Government Owned Enterprises (GOEs) are not complying with the financial reporting standards.

Among other recommendations, the House noted: That the National Assembly, through its Committees on Finance, National Planning and other relevant Committees should carry out in-depth investigation of such agreements by the NNPC, NLNG and Immigration Services with a view to reconcile remittances to the Federation Account.

It added that the Committees on Finance,Petroleum Upstream, and Petroleum Downstream are tasked to

investigate reports from the Revenue Mobilization, Allocation, and Fiscal Responsibility Commission alleging that the NNPC withheld ₦8.48 trillion as claimed subsidies for petrol.

Additionally, the investigation will address the NEITI report stating that NNPC failed to remit $2 billion (₦3.6 trillion) in taxes to the Federal Government.

The committees are further directed to

verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit (PMS) by the NNPC between 2020 and 2023.

That the GDP growth rate which is projected at 4.6%, 4.4% and 5.5% for years 2025, 2026 and 2027 respectively be approved ; and that the projected exchange rate which stands at NGN1400/USD for years 2025, 2026 and 2027 be approved subject however to review in early 2025 according to monetary and fiscal policies.

The House further noted that the Inflation rates projections which are 15.75%, 14.21% and 10.04% for 2025, 2026 and 2027, be approved.

That the following the criteria in the overview of the framework for revenues and expenses, the 2025 Federal Government of NigeriaBudget proposed spending stands at NGN47.9 trillion, of which NGN34.82 trillion was retained; new borrowings stood at NGN9.22 trillion which constitutes both domestic and foreign borrowings; debt service was valued at NGN15.38 trillion; pensions, gratuities and retirees’ benefits stood at NGN1.443 trillion and fiscal deficit at NGN13.08 trillion.

That the Capital expenditure is projected at NGN16.48 trillion which is exclusive of transfers statutory transfers stand at NGN4.26 trillion; Sinking Fund is projected at NGN430.27 billion; That the Committee approves the respective figures for total recurrent (non-debt) at NGN14.21 trillion; special intervention for recurrent and capital is at NGN200 billion and NGN7 billion; and that the National Assembly do approves the Promissory Note Programme and Bond Issuance to settle outstanding claims and liabilities of Federal Government owed to States, high priority judgments as well as liabilities incurred by Federal Ministries, Department and Agencies on behalf of Government.

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Reps Tackle CBN, OAGF Over Missing Grants, Bailout Funds

Published

5 hours ago

April 17, 2025

Gloria Ikibah

By Gloria Ikibah

The House of Representatives has commenced investigations into the utilisation of take-off grants, bailout funds, and interventions allocated to government institutions, from 2015 to present.

The Special Committee received submissions from the Central Bank of Nigeria (CBN), Office of the Accountant General of the Federation (OAGF), Economic and Financial Crimes Commission (EFCC) and Federal Ministry of Health, among others on Thursday.

Naijablitznews.com recalled on March 6, 2025, the Speaker Tajudeen Abbas, set up the special committee sequel to the adoption of a motion of urgent public importance, by the House Minority Leader, Rep. Kinglsey Chinda at plenary.

Rep. Chinda noted that over the years, various agencies and institutions, both old and newly created have received start-up funds and special financial support from the government to help with their initial operations and meet specific needs, including settling pending obligations.

He expressed concern that there have been ongoing reports pointing to the misuse or redirection of these funds, which may prevent them from being applied to the purposes for which they were originally intended.

According to him, such financial mishandling not only disrupts critical public services and projects but also results in major losses to the nation’s purse—resources that could have been channelled into crucial services and developmental efforts, as laid out in Section 14(2)(b) of the Constitution.

Speaker Abbas, thereafter setup a Special Committee to be chaired by Rep. Chinedu Martins to immediately launch a probe into the “Utilisation of take-off grants, bailout funds, and interventions allocated to MDAs, government institutions, and GOEs from 2015 to present.”

Standing in for the Governor of the Central Bank, the Acting Director of Development Finance, John Hammah, assured the committee of the bank’s willingness to collaborate fully in helping it achieve its objectives.

Hammah, said he was representing Olayemi Cardoso, who is currently out of the country, appealed to the committee for some time to gather and organise the relevant details needed for their ongoing work.

He said: “Mr Chairman and Honourable members, We got the invitation to appear before you yesterday and we hurriedly put this report together. We now understand the broad scope of your assignment and that you need accurate data covering the period 2015 to date. We plead with this committee to give us additional time to enable us to furnish you with to date report as requested”.

Following extended discussions, the Committee Chairman Chinedu Martins granted the Central Bank a two-week window, instructing that the CBN Governor must appear in person before the Committee on May 2, 2025.

In a similar move, representative of the Office of the Accountant General of the Federation, James Abalaka, was also given two weeks to return with a detailed breakdown of disbursements, and highlighting which agencies received funds and the exact timelines.

The Economic and Financial Crimes Commission (EFCC) was also in attendance, as the Commission’s Secretary, Muhammad Hammajoda, called on the Accountant General’s office to provide the EFCC with the necessary disbursement records related to the various MDAs.

“We want a formal report detailing the amounts and purpose of disbursement. This is the format we want the report to come from the secretariat. When we get these documents, we will sit down and analyse them”, he stated.

Speaking on behalf of the Minister of Health and Social Welfare, Prof. Ali Pate, Deputy Director Accounts, Olatunde Makinde, explained that the Ministry only received the Committee’s invitation earlier that Thursday.

To ensure accurate and complete information is provided, he requested additional time so the Ministry could gather the necessary documents before appearing.

“We don’t want to give you inaccurate information. We want to seek indulgence and understanding to give us time to reach out to the institutions under us and get an accurate view. There are many of them across the 36 states of the Federation,” he said.

Earlier, while declaring the investigation open the Speaker of the House of Representatives, represented by the House Leader, Rep. Julius Ihonvbere outlined the significance of the exercise.

He said: “The House has implicit confidence in the Committee’s capacity to conduct a thorough, impartial, and transparent investigation, engaging with relevant stakeholders, and gathering evidence to inform its findings.

“Our overall goal is to promote good governance, optimise public resource utilisation, enhance accountability in government business and equally strengthen our democracy.”

Also in his welcome address, the Committee Chairman, Rep. Martins reiterated that the purpose of the investigating hearing is to ensure that Nigerians get value for their money.

“It is imperative that we thoroughly investigate how these funds have been utilised, ensuring that every naira spent is accounted for and that it has truly benefited our citizens. Therefore, I would like to urge heads of agencies and organisations present today to provide truthful and accurate information to this committee in order to enable us to carry out our work.

“The hearing is not a witch-hunting exercise; rather, it is an opportunity for all stakeholders to come together in the spirit of cooperation. I assure all participants that we are committed to a fair hearing and respectful dialogue through this process,” he said.

News

Abuja light rail project must be commissioned on May 29-Wike vows

Published

5 hours ago

April 17, 2025

ADMIN

The FCT Minister, Mr. Nyesom Wike, expressed satisfaction with the progress on the Abuja light rail project, reaffirming its May 29 delivery as sacrosanct.

He made these assurances after inspecting the ongoing construction of access roads to the train stations on Wednesday, from Metro Train Station in the Central Area to Nnamdi Azikiwe International Airport, Abuja.

Reassuring journalists accompanying him, the minister reiterated that President Bola Tinubu would commission the rail project on May 29 to mark his second year in office.

The visited stations were Wupa station near Idu and Bassanjiwa station near the airport.

“This is part of our routine inspection of ongoing projects to see the contractors’ progress,” Wike explained.

“We are working day and night to fulfill our promise to President Tinubu and FCT residents. By May, Mr. President will ride on the Metro line.”

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Just in: Alleged Herdsmen Armed With AK-47 Rifles Take Over Communities In Benue State

Published

5 hours ago

April 17, 2025

ADMIN

Gunmen suspected to be Fulani herdsmen are currently invading some communities in the Ukum Local Government Area of Benue State.

According to sources, the herdsmen armed with AK-47 rifles stormed the community around 04:15pm on Thursday.

“Our lives are in danger this evening, armed Fulani herdsmen, about 600 in numbers have taken over our communities this evening,” a resident told SaharaReporters.

“They’re currently moving around towns in Ukum Local Government Area of Benue state. No security personnel at all, Governor Alia didn’t send security, they said operation will start soon once they (herders) have observed the place.”

The insecurity situation in Benue has been alarming in recent weeks with attacks from gunmen suspected to be herdsmen.

The media had reported that suspected herdsmen again unleashed terror in Benue State, attacking three communities in Otukpo Local Government Area (LGA) on Wednesday, just a day after 11 people were killed in a deadly raid on Otobi community.

The latest victims of the escalating violence were Emichi, Odudaje, and Okpamaju, communities that had previously suffered an attack in February, which left five people dead.

However, the renewed attack has created fear and mass displacement among residents, with women and children fleeing to safety.

Local sources say the death toll from the fresh attack remains unclear, but several casualties are feared.