Business
FG Releases N200Bn for Capital Projects
ABUJA: Federal government has released N200 billion for the second quarter capital projects, meaning that there will be more money in circulation now.
Dr. Ngozi Okonjo-Iweala, minister of Finance, said that the N200 billion brings the total capital release for both the first and second quarters to N600 billion.
The 2013 budget made provision for an aggregate expenditure of N4.987 trillion, representing an increase of 6.2 per cent over the N4.697 trillon appropriated for 2012.
This is made up of N387.97 billion for statutory transfers; N591.76 billion for debt servicing; and N2.38 trillion for recurrent (non-debt) expenditure, of which N1.717 trillion is the provision for personnel cost, while overhead cost is to gulp N208.9 billion.
Similarly, a total of N1.62 trillion was provided for capital expenditure in addition to the N273.5 billion budgeted for the Subsidy Reinvestment and Empowerment Programme.
The gross federally collectible revenue is projected at N11.34 trillion, of which the total revenue available for the Federal Government’s budget is N4.1 trillion.
According to the statement, the prompt release of funds will ensure progress in the execution of capital projects captured in the budget.
Of the N400 billion released for the first quarter, Okonjo-Iweala said N335 billion had been cash-backed, while 65 per cent of the cash-backed portion had been utilized by ministries, departments and agencies of government.
The statement also said that a total of N72.7 billion had so far been paid to the Federal Ministry of Power to cover various items necessary for the implementation of the Power Roadmap.
The amount, she said, included the sum of N45 billion paid to workers of the Power Holding Company of Nigeria as part of the power privatization programme and the sum of N5 billon paid for the Multi Year Tariff Order.
“Other beneficiaries include the Power Ministry headquarters, Power Holding Company of Nigeria, National Rural Electrification Agency, National Electricity Regulatory Commission, National Power Training Institute, National Electricity Liability Management Limited/GTE and Bulk Trader,” the minister said.
A breakdown of the N72.7 billon shows that N59.089 billon was paid in the first quarter, while N13.733 billon has so far been paid for the second quarter.
President Goodluck Jonathan, who signed the 2013 budget amidst reservation, had sent an amendment supplementary version to the National Assembly to address grey areas in the one earlier passed by lawmakers.
The grey areas include reduction in personnel cost; reallocation of capital expenditure by lawmakers and reallocation of the budget for the SURE-P.
The Finance minister had in a presentation on the 2013 budget said the government remained focused on critical economic and social sectors driven largely by private sector activities.
To achieve this, she had said N497 billon was allocated to key infrastructure, including power, works, transport, aviation, gas pipelines; the Federal Capital Territory; human capital development i.e. education and health, N705 billon; and agriculture/water resources, N175 billon.
Okonjo-Iweala had said, “We recognise that Nigeria’s infrastructure deficit remains one of the binding constraints to growth in the economy. Therefore, our strategy is to prioritise infrastructure investments in the budget, and also to leverage additional external financing for infrastructure investments in the country.
“For example, the budget 2013 has some important infrastructure projects in the transportation sector, such as the second Niger Bridge.”
The pull of market forces which moved the hands of the Nigerian National Petroleum Company Limited (NNPC Ltd) to reduce the price of Premium Motor Spirit (petrol) to N880 per litre in Lagos and N935 in Abuja appears to be a source of torture to independent markets.
Biztellers reports that the latest price review on Easter Monday saw NNPC retail outlets in Lagos drop from N925 to N880, while those in Abuja adjusted from N950 to N935.
The NNPC Ltd’s price reduction came barely a week after the Dangote Refinery lowered its ex-depot price from N865 to N835 per litre.
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In addition, the $20bn refinery also directed its partners like MRS, Heyden, and Ardova to sell a litre of petrol at the rate of N890 instead of N920 in Lagos, N900 in the South West, N910 in the South-South, and N920 in the North East.
Consumers can smile because with the reaction, the NNPC Ltd’s new price in Lagos is N10 lower than what the Dangote Refinery is selling at, which might lead to another reaction, as the price war between the two companies.
Though some NNPC Ltd’s retail outlets were observed selling at the old rate in Lagos, it was gathered that they were given the liberty to exhaust old stock before adjusting to the new prices.
Market sources are of the view that the current price war was ignited by the Federal Government’s implementation of the Naira-for-crude policy.
Gold soared to a record high of $3,500 an ounce on Tuesday, as mounting fears over a potential U.S. recession and escalating tensions between President Donald Trump and the Federal Reserve drove investors toward the traditional safe-haven asset.
The precious metal briefly touched an all-time high of $3,500.10 an ounce before retreating slightly to trade at $3,467.87.
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The rally marks the latest in a string of record-breaking gains for gold, fueled by a weakening U.S. dollar, sharp declines across global stock markets, and growing concerns over the health of the world economy.
Market sentiment took another hit this week after President Trump ramped up his trade war with China, slapping fresh tariffs on the world’s second-largest economy and intensifying fears of prolonged economic disruption.
Gold has surged more than 30 percent since the start of the year as investors seek refuge from mounting market volatility.
“The rally reflects ongoing recession fears in the U.S. economy and heightened political tensions, especially as President Donald Trump continues to attack Federal Reserve Chair Jerome Powell,” said Rania Gule, senior market analyst at trading group XS.com.
Concerns about the Fed’s independence were further stoked Monday, when Trump publicly lashed out at Powell on social media, branding him a “major loser” for not cutting interest rates — a move the president has repeatedly demanded.
The sharp criticism follows Trump’s recent suggestion that he might attempt to remove Powell from his post.
Klaus Schwab, the founder of the World Economic Forum (WEF), announced his resignation from the board on Monday, marking a significant moment in the organization’s history.
Schwab, who has been at the helm of the WEF for over five decades, confirmed he was stepping down from his position as Chair and leaving the Board of Trustees with immediate effect.
“I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect,” Schwab said, noting that the decision comes as he approaches his 88th year.
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His resignation follows his stepping down as executive chairman in 2024, when former Norwegian foreign minister Borge Brende took over the day-to-day operations.
In response, WEF appointed Vice Chairman Peter Brabeck-Letmathe as interim chairman while a search committee was formed to find a permanent successor.
The WEF board lauded Schwab’s immense contributions, acknowledging his “outstanding achievements” over his 55-year leadership tenure.
“At a time when the world is undergoing rapid transformation, the need for inclusive dialogue to navigate complexity and shape the future has never been more critical,” the WEF stated.
“Building on its trusted role, the Forum will continue to bring together leaders from all sectors and regions to exchange insights and foster collaboration.”
Schwab, originally from Ravensburg, Germany, founded the precursor to the WEF, the European Management Forum, in 1971.
The first meeting drew fewer than 500 participants, but over the years, Schwab expanded the gathering into a prestigious platform that now attracts thousands of influential figures.
The Davos summit has become synonymous with global power brokers, offering opportunities for high-level networking, discussion, and collaboration on issues affecting the world.
Under Schwab’s leadership, the WEF grew to include regional meetings and established centers dedicated to pressing global topics such as cybersecurity, climate change, and financial systems.
The organization continues to uphold its mission of “improving the state of the world” by fostering dialogue and cooperation.
However, the WEF and Schwab have not been without their critics. Many argue that the forum has become a venue for corporate elites to exert influence over governments, with the term “Davos Man” often used to describe the affluent attendees.
Schwab has also faced the ire of conspiracy theorists, particularly following his promotion of the “Great Reset” following the COVID-19 pandemic.
These theorists have spread misinformation, alleging that Schwab and the WEF are part of a global elite aiming to control the world, with even Elon Musk weighing in on social media, claiming Schwab “wants to be emperor of Earth.”
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