Nigerian govt. releases N1.1tn for 2018 Capital Budgets, set to introduce new tax rates

The Minister of Finance, Mrs. Zainab Ahmed, Thursday said the total funds released for the implementation of capital projects across the country would hit N1.1 trillion by the end of this month.Mrs. Zainab Ahmed

President Muhammadu Buhari has also ordered for the restructuring of the country’s joint venture with the international oil companies (IOCs) to reduce the government’s stake from the current 55-60 per cent to 40 per cent within the 2019 fiscal year. Mrs. Zainab Ahmed

This is coming as the Minister of Budget and National Planning, Senator Udoma Udo Udoma, also disclosed that a total sum of N820.57 billion had been released for capital projects as at December 14, 2018. Both spoke in Abuja at the breakdown of 2019 budget proposal. Ahmed said:”Let me first of all say that the N820 billion that has been released is just MDAs capital because we have releases also that go to the statutory transfer agencies that is released to them in block and that amount includes both their personal recurrent as well as capital.

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“There are also capital releases that are done as part of the capital supplementation; that is to say it is service- wide that is not in the N820 billion. According to her:”The N820 billion is 43 per cent of MDA capital; we are working to push this to N1.1 trillion by the end of December and that would be including the statutory transfers, the service-wide as well as the rest of the MDAs whose capital we are currently processing.”Mrs. Zainab Ahmed

On why the Excess Crude Account (ECA) had been depleted by about $1.68 billion in the last three weeks, she said the withdrawal reflected from the $1 billion approved for security operations on the North-east. She said: “If you recall that the NEC (National Economic Council) had authorised the use of $1 billion from the excess crude account for security. Mrs. Zainab Ahmed

So, the performance of that instruction is what has produced what we have in the excess crude account “So, it’s been largely depleted but we are still saving into it and this is the third month that we have been saving consistently into the excess crude oil account.”

On the issue of the fuel subsidy owed to oil marketers, the finance minister said the sum of N177 billion had been released to the marketers, adding that before the end of this year, another tranche would be disbursed.

The Minister of Finance, Mrs. Zainab Ahmed, Thursday said the total funds released for the implementation of capital projects across the country would hit N1.1 trillion by the end of this month.

President Muhammadu Buhari has also ordered for the restructuring of the country’s joint venture with the international oil companies (IOCs) to reduce the government’s stake from the current 55-60 per cent to 40 per cent within the 2019 fiscal year.

This is coming as the Minister of Budget and National Planning, Senator Udoma Udo Udoma, also disclosed that a total sum of N820.57 billion had been released for capital projects as at December 14, 2018. Both spoke in Abuja at the breakdown of 2019 budget proposal. Ahmed said:”Let me first of all say that the N820 billion that has been released is just MDAs capital because we have releases also that go to the statutory transfer agencies that is released to them in block and that amount includes both their personal recurrent as well as capital.

“There are also capital releases that are done as part of the capital supplementation; that is to say it is service- wide that is not in the N820 billion. According to her:”The N820 billion is 43 per cent of MDA capital; we are working to push this to N1.1 trillion by the end of December and that would be including the statutory transfers, the service-wide as well as the rest of the MDAs whose capital we are currently processing.”

On why the Excess Crude Account (ECA) had been depleted by about $1.68 billion in the last three weeks, she said the withdrawal reflected from the $1 billion approved for security operations on the North-east. She said: “If you recall that the NEC (National Economic Council) had authorised the use of $1 billion from the excess crude account for security.

So, the performance of that instruction is what has produced what we have in the excess crude account “So, it’s been largely depleted but we are still saving into it and this is the third month that we have been saving consistently into the excess crude oil account.”

On the issue of the fuel subsidy owed to oil marketers, the finance minister said the sum of N177 billion had been released to the marketers, adding that before the end of this year, another tranche would be disbursed.

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