Buhari presents 2021 Budget to National Assembly

President Muhammadu Buhari Thursday , 8,October, 2020, formally tabled the Executive’s proposed budget for the 2021 fiscal year to a joint session of the National Assembly in Abuja. Below is the full text of the president’s address at the event.

2021 BUDGET SPEECH: Budget of Economic Recovery and Resilience

Delivered By:

His Excellency, President Muhammadu Buhari

President, Federal Republic of Nigeria

At the Joint Session of the National Assembly, Abuja

Thursday, 8th October 2020

PROTOCOLS

1. It is with pleasure that I present the 2021 Federal Budget Proposals to this Joint Session of the National Assembly.

2. Distinguished and Honourable Leaders, and Members of the National Assembly, at this juncture, I wish to commend your tremendous efforts in approving the revision of the 2020 – 2022 Medium-Term Expenditure Framework and Fiscal Strategy Paper, and passage of the 2020 Appropriation (Repeal and Amendment) Act, in response to the Coronavirus Pandemic.

3. Today marks an important occasion in our quest to accord the federal budget process the seriousness it deserves. In line with our commitment, we have worked extra hard to ensure early submission of the 2021 –2023 Medium-term Expenditure Framework and Fiscal Strategy Paper, as well as the 2021 Appropriation Bill. It is my sincere hope that the National Assembly will pass this Bill into law early enough to enable implementation by 1st January 2021, given the collaborative manner in which the budget was prepared.

4. In the course of this address, I will present the highlights of our budget proposals for the next fiscal year. The Honourable Minister of Finance, Budget and National Planning will, later, provide the full details of these proposals.

RECENT DEVELOPMENTS

1. The 2021 Budget was prepared amidst a challenging global and domestic environment due to the persistent headwinds from the Coronavirus Pandemic. The resulting global economic recession, low oil prices and heightened global economic uncertainty have had important implications for our economy.

2. The Nigerian economy is currently facing serious challenges, with the macroeconomic environment being significantly disrupted by the Coronavirus Pandemic. Real Gross Domestic Product (‘GDP’) growth declined by 6.1 percent in the second quarter of 2020. This ended the 3-year trend of positive, but modest, real GDP growth recorded since the second quarter of 2017. I am glad to note that, through our collective efforts, our economy performed relatively better than that of many other developed and emerging economies.

 

3. GDP growth is projected to be negative in the third quarter of this year. As such, our economy may lapse into the second recession in four years, with significant adverse consequences. However, we are working assiduously to ensure a rapid recovery in 2021. We remain committed to implementing programmes to lift 100 million Nigerians out of poverty over the next 10 years.

4. As skills’ deficits limit employment opportunities in the formal economy, various skills’ development programmes are being implemented simultaneously to address this problem frontally. For instance, the Government is implementing the Special Public Works programme to provide employment opportunities to 774,000 youths across the 774 local government areas of Nigeria. We have also recently introduced the N75 billion Nigeria Youth Investment Fund, of which N25 billion have been provided in 2021 Budget.

5. We thank all Nigerians, for your perseverance and continued support during these difficult times. We remain unwavering in our commitment to actualize our vision of a bright future for everyone.

Performance of the 2020 Budget

6. Distinguished and Honourable Members of the National Assembly, you will recall that the 2020 ‘Budget of Sustaining Growth and Job Creation’ was amended in response to recent fiscal pressures. I am glad to report that these efforts enabled us to effectively respond to the public health challenge of Coronavirus outbreak and moderate economic impact.

7. Pursuant to our revised assumptions, the amended 2020 Budget was based on a benchmark oil price of 28 US Dollars per barrel; oil production of 1.80 million barrels per day; and exchange rate of N360 to the US Dollar.

8. Based on these budget parameters, aggregate revenue of N5.84 trillion was projected to fund N10.81 trillion in expenditure. The projected deficit of N4.98 trillion, or 3.57 percent of GDP, is expected to be financed mainly by borrowing.

9. In 2020, average daily oil production was 1.88 mbpd up to June, as against the revised estimate of 1.80 mbpd for the entire year. However, the market price of Bonny Light crude averaged 40.79 US Dollars per barrel, significantly higher than the revised benchmark price of 28 US Dollars.

10. As at July 2020, the Federal Government’s actual revenue available for the budget was N2.10 trillion. This revenue performance was only 68 percent of our pro-rated target in the revised 2020 budget. At N992.45 billion, oil revenue performed well above our budget target, by 168 percent. Non-oil tax revenues totalled N692.83 billion, which was 73 percent of the revised target.

11. To improve independent revenue performance, I have directed that the cost profiles of Government Owned Enterprises (‘GOEs’) should be scrutinized and limits imposed on their cost-to-revenue ratios. Supervising Ministers have also been directed to ensure closer monitoring of the revenue generating activities and expenditures of the Government Owned Enterprises.

12. On the expenditure side, as at end of July 2020, a total of N5.37 trillion had been spent as against the pro-rated expenditure of N5.82 trillion. Accordingly, the deficit was N3.27 trillion. This represents 66 percent of the revised budgeted deficit for the full year.

13. Despite these challenges, we met our debt service obligations. We are also up to date on the payment of statutory transfers and staff salaries, while overhead costs have been significantly covered.

14. For the first time in recent years, we commenced the implementation of this year’s capital budget in the first quarter. As at 15th September 2020 a total of about N1.2 trillion had been released for capital projects. Every Federal MDA has received at least 50 percent of its 2020 capital expenditure budget, in line with my earlier directives.

15. Let me emphasise that revenue generation remains our major challenge. Nevertheless, Government is determined to tackle the persisting problems with domestic resource mobilization, as there is a limit to deficit financing through borrowing. The time has come for us to maintain a healthy balance between meeting our growing expenditure commitments and our long-term public financial health.

Key Achievements in the 2020 Fiscal Year

34. Over the last year, this Administration has implemented several priority projects. I am happy to report that much progress has been made on several fronts and our Government has delivered on key policies, programmes and projects in these priority areas.

16. In agriculture, we have recorded appreciable success in rice and other crops mainly through the Anchor Borrowers Programme and the Presidential Fertilizer Initiative, anchored by the Central Bank of Nigeria and the Nigeria Sovereign Investment Authority, respectively. We are also accelerating the construction of 337 rural roads around key agricultural corridors to enhance access to market and reduce post-harvest losses. These efforts have reduced the adverse impact of Coronavirus on our food availability, prices and security.

17. We have made progress on the railway projects connecting different parts of the country. The Lagos-Ibadan Line will soon be operational. The Abuja-Kaduna Line is running efficiently. The Itakpe-Ajaokuta Line was finally completed after over 30 years since it was initiated and commissioned in September 2020.

18. Arrangements are underway to complete the Ibadan-Kano Line. Also, work will soon commence on the Port Harcourt-Maiduguri Line and Calabar-Lagos Coastal Line, which will connect the Southern and Eastern States to the North, and the South-South as well as South-East to the North, and South-West, respectively.

19. The Second Niger Bridge is at about 46 percent completion. We hope to commission the project before the end of our tenure in 2023. We have awarded several contracts to rehabilitate, reconstruct and construct major arterial roads, in order to reduce the hardship to commuters and increase economic activity.

20. To bridge the infrastructure deficit, we are also implementing innovative financing strategies to pull-in private sector investment. The Infrastructure Company, which I recently approved, will become a world-class infrastructure development vehicle, wholly focused on making critical infrastructural investments in Nigeria. This Infrastructure Company will raise funding from the Central Bank of Nigeria, the Nigeria Sovereign Investment Authority, the Africa Finance Corporation, pension funds as well as local and foreign private sector development financiers.

21. Under the Road Infrastructure Tax Credit Scheme, we are undertaking the construction and rehabilitation of over 780km of roads and bridges, nationwide, to be financed by the grant of tax credits to investing business. Ongoing projects under this scheme include:

a. Construction and Rehabilitation of Lokoja-Obajana-Kabba-Ilorin Road Section II (Obajana-Kabba) in Kogi and Kwara States;

b. Construction of Apapa-Oworonshoki-Ojota Expressway in Lagos State; and

c. Construction of Bodo-Bonny road with a Bridge across the Opobo Channel in Rivers State.

22. To enhance good governance, we strengthened our anti-corruption agencies to ensure they work independently and jointly, while respecting the rule of law. We have also worked to address emergent cases of insecurity and insurgency, nationwide, with innovative approaches. Our security operations in the Niger Delta, North Central and North West are yielding desired results. We are determined to get rid of bandits, kidnappers and criminal behaviour from our midst.

THEME & PRIORITIES OF THE 2021 BUDGET

23. Distinguished Senators; Honourable Members; let me now turn to the 2021 Appropriation Bill, which is designed to further deliver on the goals of our Economic Sustainability Plan. This Plan provides a clear road map for our post- Coronavirus economic recovery as a transitional plan to take us from the Economic Recovery and Growth Plan (2017 – 2020) to the successor Medium-Term National Development Plan (2021 – 2025).

24. In view of the many challenges confronting us, we must accelerate our economic recovery process, promote social inclusion and strengthen the resilience of the economy. The 2021 Appropriation has, therefore, been themed the ‘Budget of Economic Recovery and Resilience’. It is expected to accelerate the pace of our economic recovery, promote economic diversification, enhance competitiveness and ensure social inclusion.

PARAMETERS & FISCAL ASSUMPTIONS UNDERPINNING THE 2021 APPROPRIATION

25. Distinguished Members of the National Assembly, the 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper set out the parameters for the 2021 Budget, which include:

a. Benchmark oil price of 40 US Dollars per barrel;

b. Daily oil production estimate of 1.86 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day);

c. Exchange rate of N379 per US Dollar; and

d. GDP growth projected at 3.0 percent and inflation closing at 11.95 percent.

FINANCE BILL 2020

26. Distinguished and Honourable Members; I have directed the Minister of Finance, Budget and National Planning to finalise the Finance Bill 2020, which will be forwarded for your kind consideration and passage into law, shortly after today’s 2021 Budget presentation. The Finance Bill is to support the realization of our 2021 revenue projections, adopt appropriate counter-cyclical fiscal policies and enhance the efficiency of fiscal incentives.

TAX EXPENDITURE STATEMENT

27. In compliance with the Fiscal Responsibility Act of 2007, we will prepare and publish, a Tax Expenditures Statement for 2019. The 2019 Statement will be the first of these annual Statements, setting out the estimated cost of tax exemptions, incentives and rebates provided under Nigeria’s revenue and other laws. The 2019 Statement is expected to contribute to public discussion on the use of our tax policies and system to achieve socio-economic development.

FEDERAL GOVERNMENT REVENUE ESTIMATES

28. Based on the foregoing fiscal assumptions and parameters, total federally distributable revenue is estimated at N8.433 trillion in 2021. Total revenue available to fund the 2021 Federal Budget is estimated at N7.886 trillion. This includes Grants and Aid of N354.85 billion as well as the revenues of 60 Government-Owned Enterprises.

29. Oil revenue is projected at N2.01 trillion. Non-oil revenue is estimated at N1.49 trillion. As you will observe, the format of the 2021 Appropriation Bill has been modified to include budgeted revenues, no matter how small, for each MDA, to focus on internal revenue generation. Accordingly, I implore you to pay as much attention to the revenue side as you do to the expenditure side.

PLANNED 2021 EXPENDITURE

30. An aggregate expenditure of N13.08 trillion is proposed for the Federal Government in 2021. This includes N1.35 trillion spending by Government-Owned Enterprises and Grants and Aid funded expenditures of N354.85 billion. For 2021, the proposed N13.08 trillion expenditure comprises:

a. Non-debt Recurrent Costs of N5.65 trillion;

b. Personnel Costs of N3.76 trillion;

c. Pensions, Gratuities and Retirees’ Benefits of N501.19 billion;

d. Overheads of N625.50 billion;

e. Debt Service of N3.124 trillion;

f. Statutory Transfers of N484.49 billion; and

g. Sinking Fund of N220 billion (to retire certain maturing bonds).

FISCAL BALANCE

1. The 2021 Budget deficit (inclusive of Government Owned Enterprises and project-tied loans), is projected at N5.20 trillion. This represents 3.64 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act, 2007. It is, however, to be noted that we still face the existential challenge of Coronavirus Pandemic and its aftermath; I believe that this provides a justification to exceed the threshold as provided for by this law.

31. The deficit will be financed mainly by new borrowings totalling N4.28 trillion, N205.15 billion from Privatization Proceeds and N709.69 billion in drawdowns on multilateral and bilateral loans secured for specific projects and programmes.

STATUTORY TRANSFERS

32. The sum of N484.49 billion provided for Statutory Transfers in the 2021 Budget represents an increase of N56.46 billion (or 13 percent) over the revised 2020 provision. The Statutory Transfer provisions are:

a. Niger Delta Development Commission – N63.51 billion;

b. North East Development Commission – N29.70 billion;

c. National Judicial Council – N110.00 billion;

d. Universal Basic Education Commission – N70.05 billion;

e. Independent National Electoral Commission – N40.00 billion;

f. National Assembly – N128.00 billion;

g. Public Complaints Commission – N5.20 billion;

h. Human Rights Commission – N3.00 billion; and

i. Basic Health Care Provision Fund – N35.03 billion.

33. In compliance with the Fiscal Responsibility Act 2007, all beneficiaries of Statutory Transfers will be required to provide the Budget Office of the Federation with periodic reports on the allocation and expenditure of funds for inclusion in the quarterly Budget Implementation Report.

RECURRENT EXPENDITURE

34. In our efforts to enhance national security and human capital development, a major part of the 2021 recurrent cost estimate is allocated to paying salaries and overheads in MDAs providing these critical public services. These include:

a. N227.02 billion for the Ministry of Interior;

b. N441.39 billion for the Ministry of Police Affairs;

c. N545.10 billion for Ministry of Education;

d. N840.56 billion for Ministry of Defence; and

e. N380.21 billion for Ministry of Health.

Personnel Costs

35. Personnel cost is still our largest single item of expenditure. In the 7 months to 31st July 2020, it accounted for 34 percent of total Federal Government spending and is projected at 33 percent of 2021 expenditure.

36. To check the incidence of payments to non-existent personnel and unauthorised allowances, only Federal staff that have been captured on the Integrated Personnel Payroll Information System (‘IPPIS’) platform will receive salaries.

37. All agencies have been directed to ensure that they obtain all necessary approvals before embarking on any fresh recruitment. Any breach of these directives will be severely sanctioned.

DEBT SERVICE

38. We remain committed to meeting our debt service obligations. Hence, we have provisioned N3.12 trillion for this in 2021, representing an increase of N445.57 billion from N2.68 trillion in 2020. A total of N2.183 trillion has been set aside to service domestic debts while N940.89 billion has been provided for foreign debt service. N220 billion is provided for transfers to the Sinking Fund to pay off maturing bonds issued to local contractors and creditors.

Overhead Costs

39. Total overhead costs of MDAs and Government Owned Enterprises are projected to rise to N625.50 billion in 2021, mainly due to the inclusion of the overheads of an additional 50 Government Owned Enterprises. Overhead provisions have also been made for newly created agencies. To keep a tab on running costs, MDAs must adhere to extant expenditure controls.

Capital Expenditure

40. An aggregate sum of N3.85 trillion is expected to be available for capital projects in 2021, as summarised below:

a. N1.80 trillion for MDAs’ capital expenditure;

b. N745 billion for Capital Supplementation;

c. N355 billion for Grants and Aid-funded projects;

d. N20 billion for the Family Homes Fund;

e. N25 billion for the Nigeria Youth Investment fund;

f. N336 billion for 60 Government Owned Enterprises;

g. N247 billion for capital component of Statutory Transfers; and

h. N710 billion for projects funded by Multi-lateral and Bi-lateral loans.

41. The 2021 capital budget is N1.15 trillion higher than the 2020 provision of N2.69 trillion. At 29 percent of aggregate expenditure, the provision moves closer to this Administration’s policy target of 30 percent.

42. Capital expenditure in 2021 remains focused on the completion of as many ongoing projects as possible, rather than the commencement of new ones. We have also made efforts to ensure equity in the distribution of projects and programmes in the proposed budget. I will be providing the National Assembly a list of some of the most critical projects which we must work collectively to ensure they receive adequate funding. Until projects reach completion, they do not deliver the dividends of democracy that Nigerians rightly deserve.

Highlights of the 2021 Capital Projects

43. Key capital spending allocations in the 2021 Budget include:

a. Power: N198 billion (inclusive of N150 billion for the Power Sector Recovery Plan);

b. Works and Housing: N404 billion;

c. Transportation: N256 billion;

d. Defence: N121 billion;

e. Agriculture and Rural Development: N110 billion;

f. Water Resources: N153 billion;

g. Industry, Trade and Investment: N51 billion;

h. Education: N127 billion;

i. Universal Basic Education Commission: N70 billion;

j. Health: N132 billion;

k. Zonal Intervention Projects: N100 billion; and

l. Niger Delta Development Commission: N64 billion.

44. The Ministry of Agriculture and Rural Development will facilitate the integrated development of its sector by promoting crops’ value chains; as well as providing rural roads, water and sanitation, veterinary and pest controls, grazing, food and strategic reserves, and access to inputs and extension services.

45. The 157 percent increase in the capital allocation to the health sector is to enhance the capacity to deliver healthcare services through the procurement of equipment, vaccines and other facilities. Two centres of excellence, as well as one Accident and Emergency Centre, will be equipped in Federal Teaching Hospitals in each geopolitical zone.

46. In addition, numerous Primary Health Care Centres will be equipped and upgraded across the six geopolitical zones. Furthermore, funds have been allocated for the expansion of Midwives Service Scheme in the six geopolitical zones. To enhance occupational safety, funds have been provided for the provision of Personal Protective Equipment for health workers.

47. The Ministry of Education’s capital allocation has been increased by 65 percent to improve the education of our children. Funds have been provided for the provision of scholarship awards to Nigerian students at home and abroad.

48. We have provided funds for the upgrade of security and other infrastructural facilities in our Unity Colleges nationwide. To improve access to education, we have made provision for the establishment of five new Federal Science and Technical Colleges. We have also provided for the payment of allowances to 5,000 teachers under the Federal Teachers Scheme.

49. In line with our commitment to invest in Transportation Infrastructure, capital allocation to the Works and Housing sector is to facilitate the completion of several critical projects in 2021. I have directed the Minister of Finance, Budget and National Planning to provide a detailed breakdown of key infrastructural projects in her subsequent Press Briefing.

50. Key projects for implementation in the Power sector include several Rural Electrification Projects in the 36 States and Abuja, Rural Electrification Access Programme in Federal Universities, the Kaduna LPFO Gas Fired power Plant, the Mambilla Hydro Power Project and the Zungeru Hydropower Project.

51. Provisions have been made for legacy debts owed to local contractors compensation and resettlement of project-affected communities, the Renewable Energy Micro Utility (Solar) project, and the construction of transmission lines and substations nationwide. These project’s implementation is expected to have positive impact on electricity supply nationwide, as well as boost productivity and employment.

52. Projects to be implemented by the Ministry of Water Resources in 2021 include provision of potable water in the North East, construction of irrigation and dams across the country, and the provision of Water, Sanitation and Hygiene facilities.

53. The Ministry of Transportation has earmarked funds for projects such as the Lagos-Ibadan-Kano Line, Abuja-Kaduna Line, Port-Harcourt-Maiduguri Line and Itakpe-Ajaokuta-Warri Line. These projects, when completed, will minimize the cost of transporting people and goods around the country.

54. To maintain the peace in the Niger Delta region for economic and social activities to thrive, the provision of N65 billion for the Presidential Amnesty Programme has been retained in the 2021 Budget. In addition, the sum of N63.51 billion has been appropriated for the Niger Delta Development Commission and N24.27 billion has been provided for the capital projects of the Ministry of Niger Delta Affairs. These allocations should further support the development of the region by facilitating the completion of important ongoing projects, such as the East-West Road.

Government Fiscal Strategy in 2021

55. The government is already implementing several measures to overcome our fiscal constraints. In addition to the Strategic Revenue Growth Initiatives, we are leveraging technology and automation, as well as more effective monitoring of Independently Generated Revenues. Our efforts are aimed at addressing revenue leakages and redirecting scarce resources to the poor and vulnerable. These efforts include:

a. Deregulation of the price of petroleum products;

b. Ongoing verification exercise with IPPIS; and

c. Implementation of service-based electricity tariffs.

56. The new petrol pricing regime has freed up resources that was allocated to subsidise petroleum products. Similarly, the ongoing IPPIS verification exercise has closed gaps that encourage ghost workers or pensioners. The service reflective electricity tariffs will help resolve liquidity crisis in the power sector and make the sector attractive to foreign investment. These reforms have released trillions of Naira for allocation to other priority areas.

57. Distinguished Senators, Honourable Members, permit me to reiterate that the main thrust of our capital spending programme in 2021 is the completion of as many ongoing projects as possible across the country. Accordingly, we have prioritized projects that can be rapidly completed to benefit our people.

58. Distinguished Senators and Honourable Members, I note, with satisfaction, your determination to promptly consider and pass the Petroleum Industry Bill into law. The enactment of this Bill will boost confidence and attract further investments into our oil and gas sector, as well as increase revenues.

59. I fully understand the difficulties many of our people are going through with the implementation of our reform agenda. However, the measures we are implementing are necessary for sustainable public finance, better allocation of our scarce resources and improved public service delivery. As we implement these reforms, social safety nets will be implemented to cushion the effect of the most vulnerable of our citizens as well as business owners.

60. In furtherance of our inclusiveness agenda, the sum of N420 billion has been provided to sustain the Social Investment Programme. N20 billion has also been set aside for the Family Homes Fund, our Social Housing Programme. We have expanded our National Social Register, to include an additional one million Nigerians following the onset of Coronavirus. We recently introduced the N75 billion Survival Fund Programme to support and protect businesses from potential vulnerabilities. Furthermore, the Central Bank of Nigeria is reducing the interest rate on its intervention facilities from 9% to 5% with a 1-year moratorium till 31st March 2021, to provide concessional lending of:

. N100 billion to households and small businesses;

a. N100 billion to the healthcare and pharmaceutical industry; and

b. N1 trillion to large agricultural and manufacturing businesses.

61. We urge Nigerian businesses and individuals to make the most of these concessional credit facilities and other such opportunities.

 

CONCLUSION

62. Mr. Senate President, Mr. Speaker, Distinguished and Honourable Members of the 9th National Assembly; let me use this opportunity to, again, commend your firm commitment towards ensuring a very harmonious and productive relationship with the Executive. It is important to further deepen this relationship in the interest of our people.

63. As you review the 2021 Budget estimates, we believe the legislative process will be expedited to ensure its prompt passage to sustain the restoration of a predictable January – December fiscal year. In this regard, I have directed all Ministers and Heads of Agencies to be personally available for budget defence.

64. Let me re-emphasize that Nigerians expect that the 2021 Budget will contain only implementable and critical projects, which when completed, will significantly address current structural challenges of the economy, improve the business environment and accelerate economic recovery.

65. May I conclude my remarks by commending the National Assembly for its support in steering our economy during these very challenging times. We remain committed to sustaining this partnership. We believe that as we work together, we will jointly deliver on our joint mandate to our people.

66. It is with great pleasure, therefore, that I lay, before this Distinguished Joint Session of the National Assembly, the 2021 Budget Proposals of the Federal Government of Nigeria, for your consideration.

67. I thank you for your attention.

68. May God continue to bless the Federal Republic of Nigeria.

Arik Air reconnect Enugu route

Arik Air is resuming services from Murtala Muhammed Airport, Ikeja Lagos to Akanu Ibiam International Airport, Enugu effective October 6, 2020. Flights between Lagos and Enugu will operate thrice weekly on Tuesday, Thursday and Saturday in the first instance.

Arik Air suspended flights to Enugu last year when the federal government closed the airport for reconstruction.  Passengers have been yearning for the return of the airline to Enugu following the reopening of the airport for commercial flights earlier in September.

The airline’s Chief Executive Officer, Captain Roy Ilegbodu said the carrier is happy to be back in Enugu. “We are delighted to return services to Enugu having missed our esteemed customers in and around the Coal City.

“We are pleased to be back to offer exceptional travel experience to our highly esteemed customers who will be elated with our on time departures.”

The airline advised customers to take advantage of its online booking platform (www.arikair.com) for their ticket purchase and ensure that they observe all COVID-19 protocols at the airport as well as on board.

 

At Last,FG Reaches Agreement With Labour; NLC,TUC SUSPEND PLANNED NATIONWIDE STRIKE ACTION

JOINT COMMUNIQUE ON THE RESOLUTION OF TRADE DISPUTE BETWEEN THE FEDERAL GOVERNMENT OF NIGERIA (FGN) AND THE ORGANIZED LABOUR REPRESENTED BY THE NIGERIA LABOUR CONGRESS (NLC) AND THE TRADE UNION CONGRESS (TUC) HELD AT THE STATE HOUSE BANQUET HALL ON SUNDAY, 27TH SEPTEMBER 2020 

A Bipartite Meeting between the FGN and the two Labour Centres – Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC), Having been convened at the Banquet Hall, State House, Abuja to discuss emerging labour issues arising from recent cost - reflective Electricity Tariff adjustments and deregulation of the downstream sector of the Petroleum Industry, Recognizing the public outcry and protest over the recent Federal Government twin policies on Electricity Tariff Reform and full implementation of deregulation of the downstream sector of the Nigerian Oil and Gas Industry resulting in the planned nation-wide industrial action by Organised Labour, Bearing in mind the spiral and negative impact of COVID-19 pandemic on world economy, Further bearing in mind that due to impact of COVID-19 pandemic the world is undergoing socio-economic transition which has affected price stability, sustainability of enterprises, employment, and other socio-economic indices, Acknowledging that the spiral and negative impact of COVID-19 pandemic on the global economy has given rise to the need for a new socio-economic order, Recognising the need to sustain enterprises for retention and creation of jobs as well as sustainable growth and development, Acknowledging the need for social concertation between the Federal Government and workers’ representatives, namely the two Labour Centres – 

The NLC and TUC, To aid in the dialogue and communication, the Federal Government side made presentations to show the state of economy and the drive behind the recent cost - reflective Electricity Tariff adjustments and deregulation of the downstream sector of the Petroleum Industry, Bipartite meeting to address and resolve the issues in dispute between the FG and Labour Centres were held on September 15, 24, and 27, 2020, 

After exhaustive deliberations on the issues raised by Labour Centres, the FGN stated that it has fashioned out palliatives that would ameliorate the sufferings that Nigerian workers may experience as a result of the cost - reflective Electricity Tariff adjustments and deregulation of the downstream sector of the Petroleum Industry. 

The palliatives will be in the areas of transport, power, housing, agriculture and humanitarian support. 

After thorough debates and negotiations on various issues raised by all parties, the following resolutions were reached and mutually adopted: ELECTRICITY TARIFF REFORMS The parties agreed to set up a Technical Committee comprising Ministries, Departments, Agencies, NLC and TUC, which will work for a duration of two (2) weeks effective Monday 28th September 2020, to examine: 

The justifications for the new policy in view of the need for the validation of the basis for the new cost reflective tariff as a result of the conflicting information from the fields which appeared different from the data presented to justify the new policy by NERC; metering deployment, challenges, timeline for massive roll – out.

 The Technical Committee membership is as follows: Mr Festus Keyamo, SAN – Hon. Minister of State Labour & Employment - Chairman Mr Godwin Jedy-Agba – Hon. Minister of State Power – Member Prof. James Momoh - Chairman National Electricity Regulatory Commission – Member Engr. Ahmad Rufai Zakari - SA to Mr. President on Infrastructure – Member/Secretary Dr. Onoho’Omhen Ebhohimhen – Member (NLC) Comrade Joe Ajaero – Member (NLC) Comrade Chris Okonkwo – Member (TUC) 1no. Representative of DISCOS - Member 

The Terms of Reference (ToR) are as follows: To examine the justification for the new policy on cost - reflective Electricity Tariff adjustments. 

To look at the different Electricity Distribution Company (DISCOs) and their different electricity tariff vis-à-vis NERC order and mandate. 

Examine and advise Government on the issues that have hindered the deployment of the six million meters

. To look into the NERC Act under review with a view to expanding its representation to include organized labour. 

The Technical sub - committee is to submit its report within two (2) weeks. During the two weeks, the DISCOs shall suspend the application of the cost - reflective Electricity Tariff adjustments.

 The meeting also resolved that the following issues of concern to Labour should be treated as “stand – alone” items:

 The 40% stake of Government in the DISCO and the stake of workers to be reflected in the composition of the DISCO’s Boards. 

 An all-inclusive and independent review of the power sector operations as provided in the privatization MOU to be undertaken before the end of the year 2020, with Labour represented. 

 That going forward, the moribund National Labour Advisory Council (NLAC) be inaugurated before the end of the year 2020 to institutionalize the process of tripartism and socio dialogue on socio – economic and major labour matters to forestall crisis DOWNSTREAM SECTOR DEREGULATION Consequent upon the critical review of the various challenges of the downstream sector of the Nigeria oil and gas industry vis a vis the incalculable losses associated with a subsidy regime the Country has been incurring in terms of, stifled growth in the downstream sector, diminished human capital development and massive financial leakages and flight. 

This is in addition to the dire financial circumstances of the Federation that precludes any ability to sustain any subsidy on PMS and making deregulation of PMS inevitable. Consequently, the Parties agreed to the following: All parties agreed on the urgency for increasing the local refining capacity of the nation to reduce the overdependency on importation of petroleum products to ensure energy security, reduce cost of finished products, increase employment and business opportunities for Nigerians. 

 To address (1) above, NNPC to expedite the rehabilitation of the nation’s four refineries located in Port Harcourt, Warri and Kaduna and to achieve 50% completion for Port Harcourt by December 2021, while timelines and delivery for Warri and Kaduna will be established by the inclusive Steering Committee. 

 To ensure Commitment and transparency to the processes and timelines of the rehabilitation exercise, the management of NNPC has offered to integrate the national leadership of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association (PENGASSAN) into the Steering Committee already established by the Corporation. 

 A Validation team comprising the representatives of the NNPC, Nigeria Extractive Industries Transparency Initiative (NEITI), Infrastructure Concession Regulatory Commission (ICRC), NUPENG and PENGASSAN will be established to monitor progress of the rehabilitation of the refineries and the pipelines/strategic depots network and advice the Steering Committee periodically. 

 Post rehabilitation, NNPC shall involve the PENGASSAN and NUPENG in the process of establishing the operational model of the Nation’s refineries. 

 The Federal Government will facilitate the delivery of licensed modular and regular refineries, involvement of upstream companies in petroleum refining and establishing framework for financing in the downstream sector. NNPC to expedite work on the Build Operate and Transfer framework for the nation’s pipelines and strategic depots network for efficient transportation and distribution of Petroleum products to match the delivery timelines of the refineries as agreed. 

 The Federal Government and its agencies to ensure delivery of 1 million CNG/LPG AutoGas conversion kits, storage skids and dispensing units under the Nigeria Gas Expansion Programme by December 2021 to enable delivery of cheaper transportation and power fuel. 

A Governance Structure that will include representatives of organized Labour shall be established for timely delivery.

 GENERAL INTERVENTION To cushion the impacts of the downstream sector deregulation and tariffs adjustment in the power sector, the Federal Government will implement the following: A specific amount to be unveiled by the FGN in two weeks’ time will be isolated from the Economic Sustainability Programme Intervention Fund and be accessed by Nigerian Workers with subsequent provision for 240,000 under the auspices of NLC and TUC for participation in agricultural ventures through the CBN and the Ministry of Agriculture. 

The timeline will be fixed at the next meeting. Federal Government will facilitate the removal of tax on minimum wage as a way of cushioning the impacts of the policy on the lowest vulnerable.

 Federal Government will make available to organized labour 133 CNG/LPG driven mass transit buses immediately and provide to the major cities across the Country on a scale up basis thereafter to all States and Local Governments before December 2021.

 Housing: 10% be allocated to Nigerian workers under the ongoing Ministry of Housing and Finance initiative through the NLC and TUC. 

 Consequently, the NLC and TUC agreed to suspend the planned industrial action. ORGANISED LABOUR; ___________________ __________________ Ayuba Wabba, mni Quadri Olalaye NLC PRESIDENT TUC PRESIDENT _________________ __________________ Emmanuel Ugboaja Musa Lawal Ozigi, mni Secretary General NLC Secretary General TUC _________________ __________________ Williams E. Akporeha Festus Osifo NUPENG President PENGASSAN President ___________________ __________________ Martin Uzoegwu Chris N. Okonkwo President NUEE President, SSAEAC FOR GOVERNMENT: __________________ _______________________ Timipre Sylva Festus Keyamo, SAN Hon. Min. of State Petroleum Hon. Min. of State Labour & Employment __________________ _____________________ Alh Lai Mohammed Godwin Jedy-Agba Hon. Min. of Information & Culture Hon. Min. of State Power _________________________ Sen. (Dr.) Chris Nwabueze Ngige, OON, MD. Honourable Minister of Labour & Employment _______________________________ Boss Mustapha Secretary to the Government of the Federation

President Aviation Lions Club urges govt. to address falling educational standards donates textbooks to schools

The Federal Government has been advised to look into the falling standard of education in public schools in the country with a view to raising the bar in the interest of the future generations. 

President of the Ikeja Aviation Lions Club, Engr. AbdulRamah Musa made this call while donating textbooks including English, Mathematic, Agriculture, Biology, Physics, story books among others for Primary, Junior and Senior Secondary Schools of Murtala Mohammad Airport. 

According Musa, the falling standard of education in public schools was alarming which needed urgent attention of government calling, on them to face the challenge squarely. 

He commended the government for opening schools in the country for the new acedemic session saying, it was the best decision to be taken.

On the donation of the books to the school, Musa who is also the HOD electrical MMIA said, it was their widow’s mite to boosting the academic performance of the students

He said they were increasing the library of Mohammed Airport Schools with 70 textbooks richer with donations by the Ikeja Aviation Lions Club. 

He added that this was also to equip the students in their studies and the teachers to give their best to the students.

According to him, whatever is within the aviation industry is part of their responsibility and to impact their environment through donations and other activities that will put smiles on the faces of all.

“And we are very happy in donating some books to them so that at the end of the day they will be able to impact their society.”

“We donated general books that are useful to everybody, story books, English, Mathematics and various other books that are very, very useful to them in their academic career.”

Engr. Musa promised that the club was ready to do more, adding that the students are the future of tomorrow and they must be fully equipped with knowledge for that tomorrow.

Guiding Lion of the Club, Engr. Teris Ihenacho called on parents to ensure they give their time to their children, monitor them to ensure they do not get involved in activities that will hamper their educational progression.

She urged parents to inculcate in their children good morals and to watch their association, adding that the issue of cultism was becoming rampant in schools.

“We have to start from the family, the government aso has a role to play but we as parents should teach our children how to behave very well in school, monitor them, make sure they are not involved in any cultism.”

On the role government should play, Engr. Ihenacho said, “the government should also engage the students meaningfully, put measures in place to curb cultism that has rear its ugly head in some schools now, government should not handle it with kids glove, they should punish severely those involved in cultism to serve as a deterrent to others.”.

Also speaking, the first President of the club, Alhaji Yahaya Gusau said, the donation was aimed at preparing the future of tomorrow today, adding that if this was not done, the future will be blink.

“Am very happy today, it is a very good one and as far as am concerned, we are at par with any Lions club in Nigeria”.

The Head Teacher of the MMA Secondary Schools, Mrs. Felicia Fatuade while receiving the donated textbooks said they were not surprised at the donations because the Lions Club have been involved in several activities in the schools.

She listed these activities to include tree planting, eye test for the teachers and giving of glasses and referrals to hospitals for further optical services.

Mrs. Fatuade applauded the club for boosting the academic status of the students.

“On behalf of Murtala Mohammed Airport Schools, the Board Chairman, the entire Management, we are saying thank you so much, we appreciate you, we pray that God will bless your efforts.”

The Club’s next activity in the month of October is eye screening for staff of the industry.

On a monthly basis, the Ikeja Aviation Lions Club engages in various activities as part of their contribution to the well being of the aviation family as well as the environment.

In the month of August, the Club embarked on the beautification of the environment with the planting of trees at the Hajj and Cargo terminal of the MMIA, Lagos.

Hausa man writes on why Yorubaland will never be conquered by Fulani Jihadists

If you carefully study the Yoruba people, they have a very strong ethnic bond which is very hard for external perpetrators to break.

I read their history especially about wars, I also lived among them some years ago. To my own knowledge, the only reason why Yorubaland wont be conquered is because of their traditional power, nothing again!

When fulani invaded hausa territory in 18th century, I couldn't comprehend till now why a foreigner will just come to your own land and conquers you. My historical research reveals that hausa people also practices traditions and there are Traditionalist in hausa land before Fulani Jihadists attacked them and conquers the territory. As an hausa man, I write with regret that we are confused in my land. The fulanis has mixedup with us. You cant identify an hausa man from a fulani, kanuri etc. We have lost the power to fight back.

Come to think of Yoruba people, the history recorded that the same fulani that conquered the hausa kingdom never succeeded in Yorubaland. Why?

I need to be sincere by putting aside religion, the traditional fighters in Yorubaland saved the yoruba Territory. The fulani attacked the yoruba kingdom suddenly and unprepared, but these men fought back to retain their Territory. They fought not with islam or christianity, they fought with both guns and Traditional power.

Write this down today for record purpose, yoruba will never be relevant again in life any day they do away with their culture or traditional practices. I have been to some countries where I saw yoruba cultures and Traditionalist, they are special especially in the western world.

Pastor Adeboye is not special because Christianity is a western religion, how can he be special when he's practicing a foreign religion. Christianity is like Islam that is well known. So you can't be special in that field. The same thing goes to the various sheikh, imams etc in Yorubaland. They are not special because islam is a popular religion brought to them. Just like almost all Africans.

If the fulani had met on Christianity or islam in Yorubaland when they invaded them in 18th century, then Yorubaland would have been like hausaland. But these Traditionalist fought with their powers by defeating the fulanis in various wars. I have read that fulani and yoruba are enemies historically.

Let me expose a secret, the fulani fears the yoruba people because of yorub Traditional power. Those practicing Islam in Yorubaland will be very easy for fulani to penetrate exactly the way they penetrated hausa people and Kanuri in the North.

Hausa was unable to fight back the fulani because of religion. Both fulani and hausa practices islam, so there is no a secret power in Quran that hausa will use against fulani because both of them knew about it. Look at the yorubas, they have something different which is known to them. And this is why they were able to use it against any foreign invaders.

Do not get me wrong, am not saying fulani, hausa or igbos etc in Nigeria doesn't have culture or Traditional powers. My point is that they didnt take those powers important, unlike the yorubas who made it important as their religion. Most of their kings are spiritual. How many of my Emirs have that type of power? Were there not hausa leaders in hausa kingdom before fulani conquers them? Why didn't they succeeded in Yorubaland?

The Amotekun, OPC and other yoruba security groups in Nigeria, do you think they just carry all guns and went to the forest?

When yoruba said they will mercilesly deals with Bokoharam if they (Bokoharam) ever tried to attacked their Territory, do you think this statements came from a pastor or Imam? It actually came from yoruba Traditionalist.

The fulani and other yoruba enemies have been looking for a way to penetrate Yorubaland, but this traditional power is their fear. Quote me anywhere. I know what I am saying! I am not a fool!

You dont compare black people with whites, we are different. We need to look back at history, I am an educated hausa man who knows much about history.

The day all yoruba becomes Christian's, Muslims or atheists will be the day Yorubaland will become ordinary and not culturally relevant like others. Then their closest enemies will come back and conquers them eventhough they fail to conquers their fathers in history.

Southern Kaduna is suffering death today because they have no special power for self defense. You can see how they keep killing them. Do you think if Southern Kaduna had been a yoruba Territory, OPC, agbakoya etc wont have confronted those killers?

Hausa is not the one killing them In kaduna, our people dont have that time. The miyetti allah and fulani should be questioned.

_Dr. Muhammad Al-Mustapha Zamfara, Nigeria._

Candlelight Foundation wages "war" against hunger and food insecurity

Standing on the right is Mr. habeeb  Ajide  Ajibola , Tech Personnel – The Candlelight Foundation, Closely followed by the Programmes Director of The Candlelight Foundation, Mr. Christian Agadibe, next the President of the Lagos Food Bank, Mr. Michael A. Sunbola and lastly, Miss David Deborah, Business Development Associate – The Candlelight Foundation, during the handover of food items from the Lagos Food Bank to The Candlelight Foundation. 

As part of efforts to mitigate hunger and fight food insecurity, NGO known as Lagos Food Bank has joined the likes of Indomie, Coca-Cola and Woodhall Capital in partnership with The Candlelight Foundation to feed the less advantaged.

The Candlelight, which has provided over 55,000 meals at their centre located at 39, Oyekan Street, Off Ogunlana Drive, Surulere, has been selected by Lagos Food Bank after their due diligence was carried out.

They praised The Candlelight Foundation for their neatness, coordination, manner of approach to patrons.

Reports have suggested that because of Covid-19 Pandemic another 96 Million Nigerians will thrust into poverty and hunger after the period of isolation and lockdown.

According to The Candlelight Foundation, this is evident from the increase in the number of patrons they attend to every food service day.

Commenting during the handover of foods items, The Lagos Food Bank President, Mr. Michael A. Sunbola expressed satisfaction at The Candlelight Foundation service. In his words: "We have adopted The Candlelight Foundation as one of our partners agencies that we want to be supplying food to and also to reach people in Surulere, so it's something that we need to invest in."

When asked why he chose The Candlelight Foundation, He further made mention of the outstanding credibility, stressing that was what motivated and engineered this partnership.

“We did our findings and when we got the information, we began to carry out our research and the feedback we got about The Candlelight Foundation was good, it’s just something that looks really genuine. I saw some of your pictures as well and there are lot of evident reasons to see that you people are very genuine. We are really happy when we find credible organizations. And we are happy because we know that the work is being done and people are being reached. This is the most important thing. There are a lot of pseudo organizations out there who are really not doing this work. We also know that this work is not easy. So when we find those doing it, we are always happy to be partners with such people,”Sunbola said.

The Candlelight Foundation has been feeding people before the covid19 pandemic but as the effect of hunger continues to rise, The Candlelight Foundation is taking their place increasing the number of meals provided in an attempt to meet up with the increasing number of patrons visiting their centre.

An enthusiastic Executive Director of The Candlelight Foundation, Uzoamaka Okeke was quoted saying, “I am excited that the Lagos Food Bank which is an NGO that The Candlelight Foundation greatly admires, has decided to partner with us. We recognize that Charity is not a competitor’s spot and so we look forward to a greater and deeper relationship with them as well as other NGOs, Charity Organizations, Food Brands and other Sectors of the society.”