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NBET, MOFI Give Details Of 2024 Budget Performance, Presents 2025 Projections

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By Gloria Ikibah

Managing Director of the Nigerian Bulk Electricity Trading Plc (NBET) has given a breakdown of agency’s 2024 budget performance and its 2025 budget proposal to the House of Representatives Committee on Finance during the 2025 budget defence session.

In his presentation, the Managing Director, John Akinnawo disclosed that the 2024 operational expenses were fully funded through regulatory income approved by the Nigerian Electricity Regulatory Commission (NERC).

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Akinnawo who provided further details, listed disbursements to generation companies, amounting to N450 million, facilitated by the Accountant-General on behalf of NBET. He also highlighted the impact of foreign exchange fluctuations on generation costs, stating,

He stated, “I am happy to report that our operational performance for 2024 achieved a 95% implementation rate, with a revenue receipt of ₦2.4 billion and an expenditure of ₦2.3 billion.”

“Tariffs and gas costs are dollar-indexed. The significant movement of the Naira from ₦460 to over ₦1,600 to the dollar has resulted in substantial tariff shortfalls, estimated at ₦1.7 trillion in 2024.”

For the year 2025, NBET proposed a budget of ₦705 billion under the Power Reform Program, which the Federal Government has committed to funding. This amount according to the MD includes provisions to bridge the gap between the current non-cost-reflective tariffs and actual generation costs.

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“The Federal Government continues to fund the tariff shortfall to ensure stability in the power sector. However, the regulator must adjust tariffs to reduce the deficit”, he noted.

On regulatory challenges, he emphasised the need for greater public awareness regarding policies that allow community investments in transformers and other infrastructure to be recouped.

“We need widespread sensitization so that communities investing in their power networks can benefit from agreements with distribution companies approved by the regulator,” he said.

He also provided an update on NBET’s financial audits, stating that the 2023 audit, conducted by KPMG, was nearing completion, with plans to commence the 2024 audit soon.

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The committee members raising concerns over power generation, tariff policies, and funding shortfalls, especially in regions like Bayelsa that still experience significant electricity deficits due to vandalism.

In response, the Managing Director expressed empathy and reiterated NBET’s commitment to working within its mandate to support the government’s energy reforms.

The House Committee pledged to review NBET’s submissions as part of the broader effort to stabilize Nigeria’s power sector.

NBET’s proposal to use N800m to purchase project vehicles in 2025 was neither accepted nor rejected by the Committee.

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However, a member of the Committee, Leke Abejide (ADC, Kogi) asked, “Mr MD, you are requesting money to buy vehicles but you did not specify the kind of vehicles you want to buy. Where are you buying them from?”

Consequently, the Chairman of the Committee, Abiodun Faleke threatened to expunge the proposal for the purchase of vehicles if Akinnawo failed to justify why the agency needs as much as N800m for the purchase of new cars.

“Why spent N800m on vehicles? What sort of vehicles are you buying? If we don’t get answers to these questions today (Tuesday), we will expunge it,” Faleke said even as the NBET boss promised to avail the committee of all the information it requested.

Also the Managing Director of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, outlined key updates on the 2024 budget performance and projections for 2025.

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Speaking on the 2024 appropriation, the Managing Director explained that funding for personnel expenses had been released as expected.

He added, “The releases from appropriated funds for personnel went ahead earlier, and the decisions that came out of that have been implemented.”

The presentation included a breakdown of variances in releases along with explanations for those variances.

Discussing MOFI’s portfolio of investments, he outlined different categories of companies under their oversight, and highlighted challenges with companies that are yet to turn a profit.

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“On page 3, for example, we see the GSI X2, which indicates all the companies we are working with and where we have investments. We also have a second category of companies where services will be transferred directly to GSI”.

“There is a third category of companies that are not profitable yet. We are working closely with these companies to ensure they achieve profitability,” he added.

Dr. Takang also addressed achievements with specific projects completed in 2024, as well as ongoing efforts with investment companies.

“There are several special companies and projects that were completed last year, and we continue to manage investments in companies where there is no debt, but significant opportunities for growth,” he noted.

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Looking ahead to 2025, he empemphasised  need to focus on investments in key categories.

“In the 2025 project proposal, we are prioritizing the second category of investments to drive financial growth and sustainability,” he stated.

There was discussions on strategies to ensure profitability across MOFI’s portfolio, as lawmakers commended the agency’s efforts, and urged greater transparency in the management of public investments.

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NiMet workers threaten strike over welfare concerns, issue 14-day ultimatum

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By Francesca Hangeior

Workers under the Nigerian Meteorological Agency have issued a 14-day ultimatum to the agency’s management to address longstanding welfare concerns or face a nationwide industrial action.

The unions said this in a letter titled “Failure to respond to lawful and reasonable demands—14 days ultimatum,” which our correspondent obtained on Wednesday.

It was signed by Ocheme Abah of the National Union of Air Transport Employees, Sikiru Waheed of the Amalgamated Union of Public Corporation, Civil Service Technical and Recreational Services Employees, and Abdul Rasaq Saidu of the Association of Nigeria Aviation Professionals.

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The unions accused NiMet’s management of neglecting workers’ welfare and failing to implement critical policies for staff wellbeing.

“We are highly concerned that your management has inexplicably refused all entreaties from our unions to address the extremely adverse circumstances of the workers at NiMet. Despite being evidently aware of the clear backward state of NiMet’s staff welfare status in the aviation industry, your Management remains unmoved and lethargic in addressing this obvious malady,” the letter read in parts.

According to the letter, management has ignored repeated calls to resolve issues such as the non-payment of nine months’ arrears under the 2019 Minimum Wage Act, failure to implement the reviewed scheme of service since 2019, and non-payment of allowances, including the 40 per cent peculiar allowance and hardship allowance.

“The workers of the Agency do not deserve the suffering that the actions and inaction of your Management continue to mete out to them,” the unions said.

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Other grievances include non-compliance with ministerial directives for the review of Conditions of Service, non-payment of a 25-35 per cent wage award, and refusal to facilitate the transition from CONMETSS.

The letter emphasised that all workers of NiMet are directed to withdraw their services beginning at 6 a.m. on February 4, 2025, if the issues remain unresolved.

“In the light of the foregoing, we wish to inform you that the Unions as named above shall be moved to commence industrial action against the Agency after fourteen (14) days from the date of the stated issues are not completely ameliorated.

“Therefore, all workers of NiMet by a copy of this letter are hereby directed to withdraw all services at the Agency with effect from 6am on Tuesday 4 February 2025 unless otherwise.”

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NiMet management is yet to respond to the ultimatum, raising tensions as the deadline approaches.

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Nigeria expresses sympathy as 76 die in Turkiye hotel fire

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By Francesca Hangeior

Nigeria has condoled with the Government and People of Turkiye over the fire incident at the Grand Kartal Hotel in the Kartalkaya Ski Resort where 76 people died.

This is contained in a statement by the acting spokesperson of Nigeria’s Ministry of Foreign Affairs, Kimiebi Ebienfa, on Wednesday.

“The Federal Republic of Nigeria wishes to express deep condolence to the Government and People of the Republic of Turkiye over the unfortunate fire incident at the Grand Kartal Hotel in the Kartalkaya Ski Resort.

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“The fire, which claimed the lives of 76 persons and injured more than 50 others in Bolu Province in Northwestern Turkiye, was reported to have started in the early hours of Tuesday, Jan. 21, 2025.

“The Federal Government of Nigeria sympathises with the Government of the Republic of Turkiye and the families of the victims of the fire incident, and also wishes a speedy recovery of the injured,” the statement said.

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TUC proposes N2.5m threshold for personal income tax waiver

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The Trade Union Congress of Nigeria has called for an increase in the tax exemption threshold from N800,000 to N2.5m per annum to ease economic challenges faced by low-income earners.

The union stressed that this measure would increase disposable income, stimulate economic activity, and provide much-needed relief to workers and their families.

The president of the union, Festus Osifo, made the call in a statement on Tuesday.

He said, “We still have two items that we strongly believe should be reviewed in the tax bills that will immensely benefit Nigerians.

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“The threshold for tax exemptions should be increased from the current N800,000 per annum, as proposed in the bill, to N2,500,000 per annum. This will provide relief to struggling Nigerians within that income bracket, easing the excruciating economic challenges they face by increasing their disposable income.”

On the proposed transfer of royalty collection to the Nigeria Revenue Service, the TUC president warned of potential revenue losses and inefficiencies due to the lack of technical expertise in oil and gas operations within the NRS

He said, “The proposed bill assigning royalty collection to the Nigeria Revenue Service appears beneficial on the surface but would most likely result in significant revenue losses for the government. Royalty determination and reconciliation require specialised technical expertise in oil and gas operations, which NUPRC possesses but NRS lacks, potentially leading to inaccurate assessments and enforcement issues.

“Additionally, this shift would create regulatory burdens, increase compliance costs for industry players, and reduce investor confidence due to overlapping functions and inefficiencies between NUPRC and NRS.”

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Osifo reiterated that allowing the VAT rate to remain at 7.5 percent was the best for the country.

“Allowing the Value Added Tax rate to remain at 7.5% is in the best interest of the nation, as increasing it would place an additional financial burden on Nigerians, many of whom are already struggling with economic challenges.

“At a time when inflation, unemployment, and the cost of living are rising, imposing higher taxes would further strain households and businesses, potentially slowing economic growth and reducing consumer purchasing power,” Osifo said.

Osifo noted that the union welcomed the inclusion of a derivation component in VAT distribution among the three tiers of government, describing it as a step toward reducing dependence on oil revenues and encouraging sub-national productivity.

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He said, “On a general perspective, we welcome the inclusion of a derivation component in the Value Added Tax distribution amongst the three tiers of government. When passed into law and properly implemented, it will encourage productivity at the sub-national level, thereby moving us gradually from a total rent-seeking economy to a derivation-based system that will stimulate economic activities.”

The TUC president said the continued existence of the Tertiary Education Trust Fund and the National Agency for Science and Engineering Infrastructure would bring about progress to the nation’s education as well as engender economic development in the country.

He said, “It is also good to note that both TETFUND and NASENI will remain a going concern, as these institutions have greatly impacted the country through their respective mandates. Both have respectively been instrumental in improving our tertiary education and the adoption of homegrown technologies to enhance national productivity and self-reliance. Their continued existence is vital for sustaining progress in education, technology, and economic development across the country.”

However, the union president urged the Federal Government to adopt equitable tax policies that prioritise the welfare of citizens.

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He said, “ While we deeply appreciate the Federal Government’s efforts to listen and adjust to our advocacy, we still advocate that the above concerns be considered and adopted in the Tax Reform Bill, they will be highly beneficial to the Government and Nigerian populace.

“The Trade Union Congress of Nigeria has a shared responsibility to promote policies that improve the lives of Nigerians amongst whom are workers. We believe that proactive measures, when implemented, are for the maximum good of the citizens and are evidence of great and sincere leadership. As the conversations around the Tax Reform Bill continue, it is our expectation that the focus would be equitable economic growth and improved living conditions for all Nigerians.”

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