Says technical committee to advise on minimum wage
APC, PDP trade words over heckling of president
Deji Elumoye, Onyebuchi Ezigbo, Shola Oyeyipo, Adedayo Akinwale, Mercy Apollos in Abuja and Nume Ekeghe in Lagos
The
vexed issue of subsidy for petrol was a significant part of President
Muhammadu Buhari’s presentation of 2019 financial estimates to the
National Assembly Wednesday, with the president earmarking N305 billion,
out of his proposed N8.83 trillion spending plan, for the essential
commodity.The president told the 469-member National Assembly at
the House of Representatives Chambers that government would continue to
subsidise fuel price in order to reduce its burden on the citizenry.The
president’s decision, is, however, likely to generate anxiety among the
nation’s 36 governors, who had in recent times opposed subsidy
deduction from the Federation Account, arguing that it had remained a
shadowy drain on their monthly allocation.According to him, “We
have allowed for N305 billion ($1 billion) for under-recovery by NNPC on
PMS (premium motor spirit or petrol) in 2019. We will continue working
to bring it downwards so that such resources are freed up to meet the
developmental needs of our people.”The president attributed the
problem with subsidies in the past to abuse and corruption, adding,
however, that because government through the NNPC is the sole importer
of PMS, under-recovery is from the NNPC’s trading account.He said this means the possibility of some marketers falsifying claims has been removed.
The 2019 budget estimate is N300 billion lower than the N9.1 billion being implemented for 2018 fiscal year.
According
to Buhari, N4.04 trillion or 50.31 per cent is earmarked for recurrent
expenditure and N2.03 trillion representing 22.98 per cent for capital
projects.Other estimates are N492.36 billion for statutory
transfers, N2.14 trillion for debt servicing and provision of N120
billion as sinking fund.He explained that the sinking fund would be used to “retire maturing bonds to local contractors.”
The
2019 budget proposal is based on an oil production estimate of 2.3
million barrels per day and an exchange rate of N305 per dollar.Other benchmarks are real Gross Domestic Product (GDP) growth rate of 3.01 per cent and inflation rate of 9.98 per cent.
The
total projected revenue, according to the president, is N6.97 trillion,
which is three per cent lower than the 2018 estimate of N7.17 trillion.Buhari
said the expected income consisted of oil revenue projected at N3.73
trillion, and non-oil revenue estimated at N1.39 trillion.He
explained, “The estimate from non-oil revenue consists of N799.52
billion from company income tax; N229.34 billion from value added tax,
and customs duties of N302.5 billion. We have reduced our expectations
from independent revenue N624.58 billion.“Other revenues
expected in 2019 include various recoveries of N203.38 billion; N710
billion as proceeds from the restructuring of government equity in joint
ventures, and other sundry incomes of N104.1 billion.”The
president explained further that the total N8.83 trillion proposed
expenditure for 2019 included grants and donor funds amounting to
N209.92 billion.According to him, although the 2019 estimate was
lower than the 2018 budget of N9.1 trillion, it was higher than the
N8.6 trillion originally proposed by the executive to the National
Assembly.The budget deficit is projected to decrease to N1.86
trillion or 1.3 per cent of the GDP in 2019 from N1.95 trillion
projected for 2018.“This reduction is in line with our plan to progressively reduce deficit and borrowings over the medium term,” he said.
On
sectoral allocation, the president said the Ministry of Interior would
get N569.07billion, Defence (N435.62 billion), Education (N462.24
billion) and Health (N315.62 billion).To Set up Technical Committee on Minimum Wage
On
the contentious issue of new minimum wage, Buhari revealed that a
technical committee is to be constituted to advise government on mode of
funding workers’ wage increase.He said, “I am committed to
addressing the issue of a new minimum wage and I will be sending a bill
to the National Assembly on this. However, in order to avoid a fiscal
crisis for the federal government, as well as the States, it is
important to devise ways to ensure that its implementation does not lead
to an increase in the level of borrowing.“I am accordingly
setting up a high-powered technical committee to advise on ways of
funding an increase in the minimum wage, and the attendant wage
adjustments, without having to resort to additional borrowings.“The
work of this technical committee will be the basis of a Finance Bill,
which will be submitted to the National Assembly, alongside the Minimum
Wage Bill. In addition, the technical committee will recommend
modalities for the implementation of the new minimum wage in such a
manner as to minimise its inflationary impact, as well as ensure that
its introduction does not lead to job losses.”Indication that
the presentation will be rowdy emerged when the gallery of the House of
Representatives, where the session was held was cleared for lawmakers to
dissolve into an executive session.There were feelers that it was an attempt to give the president free passage during the presentation.
Though
Speaker Dogara said the executive session would only last five minutes,
it went on for more than 20 minutes in what was an attempt to ensure
that Buhari was well-received.APC and the PDP lawmakers had
earlier met on Tuesday ahead of yesterday’s budget presentation to put
finishing touches to how to receive the president.There was
confusion on the floor immediately the president stepped into the House
chambers as opposition PDP lawmakers started singing protest songs.The already prepared APC members also hailed the president, assuring him that he would have another four-year tenure.
While the APC lawmakers were chanting ‘Sai Baba,’ the PDP lawmakers persisted with their song ‘freedom come by struggle.’
PDP
lawmakers who were disenchanted and were apparently set for showdown
continued singing their protest song ‘freedom comes by struggle,’
repeatedly, making the chamber noisy and rowdy.Occasionally, they disrupted the president’s speech, making him stop as long as their noises persisted.
No sooner had the sitting began than fighting broke out between a PDP lawmaker and his APC counterpart in the House Chambers.
Hon.
Bashir Babale of APC was engaged in physical brawl with PDP lawmaker,
Hon. Douye Diri, who was preparing placards with which they planned to
protest.The lawmakers booed the Majority Leader, Hon. Femi
Gbajabiamila, when he called the Deputy Senate President, Senator Ike
Ekweremadu, aside apparently to implore him to pacify PDP members to
discontinue their aggression.Senators too were not exempted as
disagreement between Senators Sam Anyanwu and Godswill Akpabio got the
two lawmakers to stand up to each other.Bothered by the open
confrontation by the lawmakers, Buhari at a point cautioned the
lawmakers saying, “The world is watching us and we are supposed to be
above this.”The drama however, continued as lawmakers booed and
hailed the president as he enumerated some of the achievements of his
government.They shouted words such as: ‘It’s a lie! Ah! Iro lo pa (You are lying), propaganda.”
In a deliberate attempt to disturb the president’s speech, some members tampered with the microphone to create noise.
The Sergeant-at-Arm had to direct that the microphone be put off to stop the noise.
While some lawmakers stood up to give the president a clap, some others heckled him shouting, ‘Lies, propaganda’.
One
of the lawmakers called Buhari, ‘grass cutter’ in reference to the
scandal, which the immediate past Secretary to the Government of the
Federation (SGF), Babachir Lawal, was involved.As the president
was stating how his administration was fighting corruption, some
lawmakers shouted him down, saying, ‘propaganda, which corruption are
you fighting’? ‘Grass cutter’When the Buhari concluded his speech, the session turned rowdy again.
Before
Saraki and Dogara could present their speeches, APC lawmakers chanted
‘four more years,’ while their PDP counterparts screamed, ‘no more
years.’After more than 10 minutes into the drama, the
Presidential Guards Brigade band began to play the National Anthem
signalling the end of the programme, while Buhari was still seated.The ceremony ended without Saraki and Dogara presenting their speeches.
Security operatives whisked the president out of the chamber leaving the lawmakers behind.
Meanwhile,
protesting workers under the umbrella of Parliamentary Staff
Association of Nigeria (PASAN) stayed off the National Assembly in
continuation of their four-day warning strike that began on Monday.The
budget presentation, however, held amid water-tight security. All
entrances leading to the complex were barricaded with multi-agency
security operatives manning the gates and thoroughly scrutinising those
coming in.Officers of the Nigeria Police Force, Department of
State Services and other sister agencies were on the ground ahead of the
president’s budget presentation, which kicked off at 12.40p.m.Mixed Reactions Trail Buhari’s 2019 Budget Presentation
National Assembly members wednesday reacted to the 2019 federal budget estimates presented by the president with mixed feelings.
While
some legislators gave the president thumbs up for the N8.83 trillion
budget proposed for next fiscal year, others condemned the Appropriation
Bill in its entirety.In his reaction, Senate Leader, Senator
Ahmad Lawan, while frowning at the unruly behaviour of some lawmakers
while the president’s budget presentation lasted, however, saluted the
courage of Buhari for coming up with a budget of hope. He assured that
the legislature would scrutinise the proposals with a view to ensuring
that the Appropriation Bill was passed in a record time.Also
reacting, Senate Minority Leader, Senator Biodun Olujimi, emphasised
that the budget appears to be hopeless but was quick to state that the
parliament will do a thorough job before passing the Appropriation Bill.On
his part, Senate Chief Whip, Senator Olusola Adeyeye, described the
budget estimates as one that will turn things round for the better in
2019.Chairman of the Senate Committee on Privatisation, Senator
Ben Murray- Bruce, on his part, condemned the budget proposal in its
entirety saying the budget has less vote for capital expenditure.Also
reacting, Chairman of Senate Committee on Local Content, Senator Adeola
Solomon, said the budget is truly the budget for the next level of
economic development for the first time in Nigerian history.A
member of the House of Representatives, Hon. Olajide Olatunbosun,
representing Saki West/East/Atisbo federal constituency of Oyo State
said Buhari’s budget is implementable. He expressed optimism that with
the administration’s frugal attitude, it would be enough for it to do
more.The PDP caucus in the House, however, disagreed with the budget presented by the president.
Led
by the Deputy Minority Leader, Hon. Chukwuma Onyema (Anambra, PDP), the
opposition leaders said the annual budget presentation of
multi-trillion naira budget by the government has become a “hollow
ritual it began in 2015,” and which has had no meaningful impact on
Nigerians.According to the lawmakers, “Again, the Buhari
administration has tabled another and again, this hollow ritual it began
in 2015 may soon be followed, as usual, with excuses for
non-performance.“Again too, as it has always done, the APC
government known for its unique ideology of ‘blame-ology’ will start
apportioning of blames to all else, except itself.”Some
economists and analysts also said the 2019 Appropriation Bill will not
have any significant impact on the standard of living in the country.They said this in separate interview with THISDAY.
To
the Chief Executive Officer of FactBox Company, and an expert in data
and information analysis, Mr. Jide Ogunsanwo, said the contents of the
2019 proposed budget estimates does not have what is required to
alleviate poverty in the country.He said, “When the 2018 budget
was passed, Nigeria’s population was 195 million. In simple terms, last
year’s budget was the equivalent of an average of N127 per person every
day.“Now, we have a lower budget for 2019 and the population has risen to 200 million, which is N120 per person per day.
“So,
it is significantly lower than last year’s budget. If at N127 per
person last year, more people got into poverty, what do we think will
happen when we have a lower budget? So, in simple terms, this budget
will not reduce the number of poverty in the country.”To the
Chief Executive Officer, Financial Derivatives Company Limited, Mr.
Bismarck Rewane, noted that the impact of the current year’s budget
hasn’t been significant.He said, “The price of oil is the
problem. Typically, over the years, the price of crude oil has always
been about 20 per cent below the spot price, but today the spot price is
lower than the benchmark price and with that, the benchmark price
becomes meaningless.“So, we need to reduce that and increase the
deficit. We need to expand the expenditure. So, we are between a rock
and a hard place. To me, what is inevitable and imminent is that there
would be a supplementary budget.”Also, a senior lecturer at the
Lagos Business School, Dr. Bongo Adi, said, “There is a very huge
discrepancy between the budget allocated and what is given to the
ministries by the government. I don’t know how we can deal with that
situation because it seems like the budgeting system has also become
politicised.”APC, PDP Trade Words over Heckling of President
The
nation’s two leading political parties, the All Progressives Congress
(APC) and the Peoples Democratic Party (PDP), Wednesday traded words
over the heckling of President Muhammadu Buhari during his presentation
of the 2019 Appropriation Bill to the National Assembly in Abuja.The
president had presented the N8.83 trillion financial estimates for 2019
amidst cheering from his APC lawmakers and jeering from the
opposition-led PDP legislators.Both Senate President Bukola
Saraki, who presided over proceedings, and Speaker Yakubu Dogara could
do little about the situation as both parties made Buhari’s outing
uncomfortable.Reacting to the incident, the APC said the PDP
legislators’ conduct was disgraceful and unbecoming of their status as
lawmakers of the federal republic.The PDP, however, retorted,
saying his members were entitled to show their displeasure at what it
called the compound failure of the APC-led administration.In a
statement by its National Publicity Secretary, Mallam Lanre Isa-Onilu,
APC said by law, respect for the Office of the President or Head of
Government in any clime is not a matter of choice but a civic obligation
sanctioned by laws.“We condemn in strong terms the action by
lawmakers of the Peoples Democratic Party (PDP) during the presentation
of the 2019 budget by President Mohammadu Buhari on Wednesday,” it said.APC
said PDP should be aware that the disgraceful conduct and actions of
its legislative caucus has succeeded in eroding the remnant of the
public’s respect, (if any) that the party has in the eyes of any
respectable Nigerian.According to APC, the action has further
confirmed its unsavoury image in the eyes of well-meaning Nigerians,
that the party is largely populated by self-serving and unpatriotic
members, whose sole aim in politics is to promote their self-interests
at the expense of the country’s interests.“By law, respect for
the office of the president or head of government in any clime is not a
matter of choice but a civic obligation sanctioned by laws. Being an
opposition party or critic is no licence for such wayward conduct by the
PDP legislative caucus; most especially against the president of the
country,” it said.Expectedly, the PDP responded in kind through
National Publicity Secretary, Mr. Kola Ologbondiyan, who said, at a
press conference in Abuja, that the jeering showed that Mr. President no
longer enjoys the support of Nigerians across the country, adding that
he no longer has any political foothold and could only awaits a crushing
defeat in the 2019 general election.According to the PDP, the
spontaneous action of the lawmakers, at the joint session of the
National Assembly, was a resounding and unambiguous vote of no
confidence and unmistaken expression of Buhari’s rejection by the
Nigerian public, across the divides, who are fed up with his
incompetent, divisive and corrupt administration.It said, “What
else do Nigerians want from a president, who has openly confessed his
lack of capacity to find solutions to the myriads of problems his
administration brought and on that note promised Nigerians more
sufferings and hardship in the coming year?“This is more so as
his scripted presentation at the budget session was full of false
performance indices, claims of non-existent projects, half-truths, bogus
fiscal projections, beguilement and new list of fake promises, which
Nigerians have since seen through.”The president had waded
through his harassment, presenting his estimates, a key component of
which was the N305 billion earmarked for the payment of fuel subsidy
claims during the fiscal year, the first of such allocation since the
administration took over in 2015.Buhari also used the
opportunity of the budget presentation to unveil his plan to set up a
technical committee to advise the federal government on the mode of
funding impending workers’ wage increase.The presentation, which lasted for about 50 minutes was marred by hailing and booing by senators and House members.
Source:- Thisdaylive
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