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President Yar’ Adua introduces austerity measures in 2009
By Omoh Gabriel
President Umaru Musa Yar’ Adua has in the provision of the 2009 budget introduce austerity measure in Ministries, Departments and Agencies to combat the financial constraints facing the 2009 budget. This will in the course of the implementation of the budget bring about belt tightening of the every Nigerian. This is more so if the revenue expectation fall short of target as already the price of crude has slide to $44 per barrel below the $45 per barrel benchmark of the 2009 budget and the fact that OPEC has cut Nigeria quota to 2.05million barrel per day while the budget is predicated on oil production of 2.292million barrel per day.
Giving hints of the proposed austerity measures in Lagos on Friday, Minister of Finance Dr. Shamshudeen Usman who was accompanied by the Minister of Information Mr. John Odey said that “Due to these serious resource constraints, the 2009 budget features certain cost saving measures” Giving details of the measures the minister said that in the 2009 budget circle “the federal government will not purchase any new vehicle”. He said that the government in the thought that went into the framework of the 2009 budget has decided to introduce eight cost saving measures which guided the provisions for the budget proposals. The eight measures are:
* No new procurement of new vehicles, no construction/acquisition/purchase of new office buildings, reduction in the provision for office furniture and equipment in non essential cases, reduced provision for international travels and transport, focus on priority sectors, reduced provision for workshops, outlays on meals and refreshment have been rationalised across the board, minimal capital votes for some MDAs.
Dr. Usman said that “it is based on these policies that details of the 2009 budgetary provisions were made”. The minister disclosed that “the deficit component of the 2009 budget was higher than what the fiscal responsibility act provided for and would require the approval of the National Assembly for the executive to implement the deficit”. He said that the act provision “empowers the executive to raise a deficit of 3 per cent of GDP but that the current deficit is 3.3 which is above the provision of the act and would need the approval of the legislature for it to stand”. Making for clarification on the budget the minister said that the source of funding of the deficit has been well articulated. He said that “the deficit is to be financed by out standing signature bonuses, privatisation proceeds, recall of $200million from Africa Development Bank/ATF, unspent balances of 2008 budget and domestic borrowing”.
Giving the breakdown of the amount expected from the various outlined sources to finance the deficit the minister said that outstanding signature bonuses from oil block sales amounts to N155billion, Proceeds from privatisation N100billion, the recall of $200million from yields of Nigeria investment in Africa Development Bank Trust funds (which has grown to $400million) N25billion, Domestic borrowing will yield N420billion, Nigeria International Bond that will be floated will yield another N62billion and about N330billion from the unspent 2008 budget will all be put together to finance the deficit component of the 2009 budget.
Explaining the rational for federal government‚Äôs plan to issue a $500 million, 10-year sovereign bond Shamshudeen said that it is ‚Äúaimed at setting a benchmark interest rate for private borrowers looking to invest in the global capital market that will set a basis for discussion with private investors who are interested in Nigeria Public Private Partnership. He said that at the moment there is no benchmark for measuring Nigeria risk and with government plan for PPP, it has become imperative for Nigeria to raise the bond from the international capital market. It is for us to have a benchmark rate so that we can determine the risk nature of the country,” He said the interest rate at which the naira-denominated bond is sold will help provide a reference point for Nigerian banks and other domestic companies in raising funds in the international credit market. Global investors are increasingly interested in buying Nigeria assets as a way of picking up yield, due to tightening debt spreads in traditional emerging markets. Ratings agency Standard & Poor’s launched a national credit rating scale for the Nigerian government and corporate debt last month to reflect rising foreign investment in Africa’s top oil producer.
File : Austerity 06/12/08
Uncategorized
Customs seizes multi million-naira petroleum products in Adamawa
The Nigeria Customs Service under ‘Operation Whirlwind’ has seized petroleum products worth N181.6 million in eight weeks between the Nigeria and Cameroon borders.
ACG Kolapo Oladeji, national coordinator of Operation Whirlwind, disclosed this at a news conference on Thursday in Yola. Mr Oladeji said the seizures were made across various smuggling flashpoints in Adamawa in 55 separate operations.
“This operation is geared towards energy and food security to foster economic growth in line with the core mandates of the President of the Federal Republic of Nigeria, Bola Tinubu. In line with these mandates, the Operation Whirlwind Zone ‘D’ had repositioned all its machinery across the area of its responsibilities and ensured that the border became airtight,” he said.
He warned the smugglers to stop such acts and solicited the continued support and cooperation of all stakeholders in the state’s socioeconomic development. “We will ensure that the supply chains of these economic wreckers are truncated in accordance with enabling laws. This fight has no doubt helped in transforming the nation’s economy and strengthening the security of our borders,” he said.
He further said that the seized petroleum products would be auctioned to the public. Abidemi Adewumi-Aluko, assistant legal adviser of the attorney general of the federation, described the auction as a symbol of reclaiming resources to ensure that the benefit of petroleum remained in Nigeria. She said that such offences attracted life imprisonment because they threatened national security. NAN
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Chevron to join Nigeria oil licence auction, plans rig deployment in 2026
Chevron said on Friday it will participate in Nigeria’s next oil licensing round and plans to deploy a drilling rig in late 2026 as it seeks to expand operations in Africa’s top energy producer.
Jim Swartz, chairman and managing director of Chevron Nigeria/Mid-Africa Business Unit, said the company aims to grow its footprint in Nigeria, citing improved regulatory clarity under the Petroleum Industry Act, PIA.
“We will participate in the next licensing round. Our intention is to continue to grow in Nigeria,” Swartz told reporters after meeting the upstream regulator. Nigeria’s licensing rounds are part of efforts to attract investment and boost output after years of underinvestment. The 2025 round will offer 50 fields through a digital platform, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said. TotalEnergies has also expressed interest in joining an auction.
Chevron recently agreed to acquire a 40% stake in two offshore exploration licences, PPL 2000 and PPL 2001, from TotalEnergies and is seeking regulatory approval to accelerate development.
Swartz said it plans to bring in a rig in late 2026 to drill a newly discovered resource near Agbami and extend leases on existing assets. Swartz added that Chevron had recorded no oil theft or sabotage in the past year, the longest period without disruptions in its Nigerian operations, a sign of improved security in the sector. Reuters
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Don’t patronise touts, immigration personnel available 24/7—CGIS
Comptroller General of the Nigeria Immigration Service NIS, Kemi Nandap, on Friday urged Nigerians to shun touts and middlemen when applying for passports or other immigration services, insisting that the Service operates round-the-clock channels to assist citizens directly and transparently.
Nandap made the call in Abuja while delivering the keynote address at the fourth-quarter Nationwide Sensitization Campaign against corruption and for improved service delivery.
The campaign, themed “Innovating for Transparency and Efficiency: Strengthening Service Delivery and Combating Corruption Through Reforms,” highlights the NIS’ ongoing efforts to modernize its operations and eliminate corrupt practices.
Addressing participants, the Immigration chief said the era of relying on agents or informal handlers should be over, as the Service has put in place fully digital, citizen-focused systems that allow applicants initiate and track their processes from the comfort of their homes.
She stressed that the NIS has functional 24-hour call lines, an active call centre, constantly monitored emails and social-media channels, all designed to ensure citizens are attended to promptly and without intermediaries.
“You don’t have to go to a tout, you don’t have to go to an agent. You can sit in the comfort of your home and apply for most of our facilities. Once you avoid putting yourself at the mercy of someone, you stay in control of your application and can always reach us at any time”, she stated.
Nandap noted that recent reforms, including automated passport application processes, biometric-based verification, expanded digital architecture and streamlined service-centre operations, have significantly reduced delays, improved transparency and minimised opportunities for extortion.
She explained that passport processing timelines have improved across multiple commands following the rollout of automated scheduling and digital communication platforms.
The Comptroller General also emphasized that transparency remains the foundation of effective immigration management.
She highlighted enhanced internal audits, stricter enforcement of ethical codes and redesigned workflows as key elements of the NIS’ anti-corruption strategy.
With digital payments and automated checkpoints reducing cash interactions, she said the Service is committed to stamping out malpractice at all levels.
Nandap further disclosed that the NIS has deepened collaboration with sister agencies, civil-society groups, international partners and the diplomatic community to align operations with global border-management standards.
These partnerships, she said, are helping to harmonise processes, promote accountability and support ongoing reforms.
She appealed to citizens to familiarise themselves with official procedures, follow approved channels and use the Service’s feedback platforms—including suggestion boxes, hotlines and online desks—to report challenges or offer recommendations. “We are here for Nigerians. Tell us how to serve you better,” she said.
The Immigration CG also paid tribute to officers who lost their lives in the line of duty in Mogolu, Tuga, Tula and Niger State, calling their deaths a painful reminder of the risks faced daily by immigration personnel.
She urged Nigerians and officers alike to embrace positive change, adding that sustainable reform depends on individual commitment and collective responsibility. “The change we want starts with each and every one of us,” she said.
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