The Federal Authorities, on Tuesday, mentioned it doesn’t depend on methods and means to fund itself.
It additionally mentioned it made no request to President Bola Tinubu for funds from the Central Financial institution to pay liabilities, together with exterior debt service or share capital money calls.
The Minister of Finance and Coordinating Minister of the Economic system, Wale Edun, mentioned this whereas briefing journalists on his presentation on the Federal Government Council assembly presided over by President Bola Tinubu on the State Home, Abuja.
Edun, who introduced a constructive outlook on Nigeria’s debt and income state of affairs, highlighted key milestones met prior to now 12 months.
The minister mentioned he introduced a memorandum to the Council on strengthening the Nigeria Customs Service, including that the administration had addressed practices that beforehand burdened the financial system.
In accordance with him, the nation’s complete debt inventory in US greenback phrases decreased by 15 per cent within the first quarter of 2024, a improvement he described as “very constructive.”
Nonetheless, the whole debt inventory in Naira elevated by 25 per cent when factoring in trade fee actions and home debt issuance.
He emphasised that the federal government’s income assortment has been strong, a improvement he praised on technology-driven initiatives, and that expenditure controls are additionally being carried out.
“I can say fairly categorically that beneath President Bola Tinubu, the federal authorities doesn’t depend on methods and means to fund itself.
“At no time have we gone to Mr. President and requested permission to hunt funding from Central Financial institution to pay anyone, be it exterior debt service, be it share capital money calls or every other of the liabilities that the federal government has.
“As with all companies, we’re centered on guaranteeing that the income that’s because of the federal authorities is collected robustly, utilizing expertise avoiding the blockages, which handbook processing could cause and it has led to a really strong income effort and likewise, we’re implementing expenditure controls, additionally very ably empowered by expertise,” Edun defined.
He acknowledged that the present administration inherited N22.7tn in excellent methods and means, that are being audited and securitised. Nonetheless, the present methods and means deficit stands at N3.4tn, which is offset by working surpluses from revenue-generating companies, he famous.
Edun famous, “So inside that context, what we’ve is that we had a legacy, Mr. President inherited a legacy of N22.7tn in excellent methods amines, which have been securitized on the eve of the entry of President Tinubu’s administration.
“Naturally, we’re auditing, we’re doing a forensic audit and interrogating that determine, as a result of it’s a legal responsibility which we’ve to pay curiosity on, so any deficits that you just would possibly see, to the methods and means, to the consolidated income account, possibly computerized debits on a determine that’s nonetheless being interrogated, however as a matter of reality, the present ways in which means the deficit is N3.4tn.”
On Nigeria’s total financial outlook, the minister revealed, “Once we interrogate the figures over the primary quarter of this 12 months, if we wish to be constructive, all we’ll say is that the glass is half full, we’re midway there. If not, we could be detrimental and try to say that the glass is half empty.
“Why do I say this? The debt inventory, the whole debt inventory of Nigeria in US greenback phrases, fell by 15 per cent. That could be very constructive, any ranking company, creditor, or investor that can see it as a constructive transfer.”
He described Nigeria as a rustic with the “skill to earn in {dollars}” and should contemplate its publicity in greenback phrases.
Edun continued, “Then again, given the trade fee actions, despite the fact that there was like an N8tn enhance in precise debt issuance, the whole debt inventory, if you rely home debt, which, as I mentioned, there was a rise in issuance if you rely the whole exterior debt and home debt in Naira phrases, it has elevated by 25 per cent.
“That’s primarily because of the overseas trade motion, which may change tomorrow, as we all know.
“Linked to that’s the all-important query of the federal government’s capability to pay its means, debt, credit score is all concerning the income to service and, after all, to make use of these funds correctly, judiciously, accountably and in a means that provides constructive returns.”
Edun famous that, by evaluating the working surpluses of revenue-generating companies by legislation beneath the Fiscal Accountability Act and different authorized pointers and the way a lot is excellent and owed, “we are literally constructive.”
“The quantity that’s owed and that we’re claiming far out exceeds the N3.4tn in Methods and Means and as I’ve mentioned earlier than, we don’t depend on methods and means to pay salaries, we don’t depend on it to pay exterior debt servicing or different obligations. That’s the state of affairs, the funds of Nigeria have been revamped,” Edun mentioned.
In the meantime, the federal authorities mentioned it had accomplished 80 per cent of the 330 emergency street and bridge repairs initiatives nationwide, valued at over N500bn.
The Minister of Works, Dave Umahi, additionally disclosed this to journalists on the State Home after Tuesday’s FEC assembly.
Umahi additionally introduced that the Ministry of Finance has absolutely launched N300bn for the initiatives, with the remaining work anticipated to be accomplished quickly.
“Let me announce that the 330 emergency repairs of roads and bridges throughout the nation, valued at over N500bn, is about 80 per cent accomplished, and the Ministry of Finance has absolutely launched N300bn for the initiatives, and we’re going to publish by subsequent week the total particulars and the extent of completion.
“Additionally, the PIDF (Presidential Infrastructure Growth Fund) initiatives the Abuja to Kano, the Lagos to Ibadan and the Second Niger Bridge. The Abuja to Kano has been dismembered into three, with two for tax credit score by Dangote and BUA and the opposite by Julius Berger. Berger has moved again to website and the opposite tax credit score contractors shall be mobilized by subsequent week,” he mentioned.
The Minister mentioned he submitted three memoranda to the Council and secured approvals for contract opinions for a number of ongoing initiatives, together with the development of Umulungbe–Umuoka Highway in Enugu State, the restore of Iganmu Bridge in Lagos State, and the dualization of Calabar–Odupkani–Itu Highway in Cross River State.
Moreover, the Council authorized contracts for the rehabilitation of Katsina-Dutsin-Ma-Maraban Highway in Katsina State.
“Right this moment in FEC, we’ve three approvals for evaluation of ongoing initiatives; the primary one was the evaluation for the development of Umulungbe–Umuoka Highway in Enugu state. It was authorized for evaluation from N6.25bn to N8.85bn, about N2.6bn addition.
“We had the evaluation of the restore of the Iganmu Bridge in Lagos State, it’s reviewed from N1.16bn to N2.23bn. The final one was approval for the dualisation of the Calabar to Odupkani to Itu Highway in Cross River State. It was modified from versatile to inflexible pavement, dualized with improved smooth construction engagement. It’s reviewed from N79.65bn to N118.41bn.
“There’s additionally approval for the fast procurement of full rehabilitation of the street in Katsina State, that’s, the street on the Katsina–Dutsin-Ma–Maraban Highway in Katsina State, and it’s authorized for fast selective procurement,” he mentioned.