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Poor Budget Funding: Nigeria May Return To Recession -Senate Warns Buhari

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The Senate on Tuesday frowned at what it described as poor funding of the 2017 budget by the executive arm of government, warning that recession may return to Nigeria in full swing if the trend continues.

The Senate which resumed plenary sessions after about 8 weeks recess said only about ten per cent of the N7.4 trillion 2017 budget has been implemented so far notwithstanding that the fiscal year is barely three months to the end.

To tie loose ends on budget implementation, the Senate, however, summoned the Ministers in charge of Finance, Kemi Adeosun and her counterpart in Budget and National Planning, Senator Udoma Udo Udoma for appearance to explain reason behind for poor implementation of the 2017 budget.

The Senate took this decision after adopting a motion moved by Senator Yahaya Abdullahi tagged “Stabilizing and sustaining post recession growth of the economy”

Presenting the motion, the Senator expressed dismay against what he described as poor funding of the Budget, stressing that the sum of N310 billion released by the government was a far cry from what was required for effective implementation.

He lamented that the sum of $9 billion had been spent by government so far for the purpose of stabilising the naira.

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Senator Yahya lamented also that failure to expeditiously fulfill all righteousness on budget implementation with correct release of require funds may drag the Nigerian economy back to recession.

The Senate, however “urged the budget managers to remain focused and ensure that the current weak growth of a mere 0.55% is built upon and increased substantially in the months and years to come”

It further urged the fiscal and monetary authorities to come together and harmonize fiscal and monetary policies with a view to drastically reducing the high interest rate that has adversely affected borrowing for investment by the real sector of the economy;

The motion also “urged fiscal authorities to drastically reduce the accumulation of domestic debt in order to free the market for better access by the private sector”

Senator Barau Jibril (APC, Kano State) who seconded the motion asked that the managers of the nation’s economy be put on their toes so that they would not be complacent.

He said the failure to release money to fund the budget has become a serious threat to the economy.

Senator Dino Melaye (APC, Kogi West) in his contribution said, “Our economic managers are just joggling the economy using ways and means to manipulate it”

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He added, “If it is true that the foreign reserve has grown from $25 billion to $34 billion, why are we incapacitated in funding the 2017 budget? We must say the truth.

“We must go back to the drawing board and take key decisions. We must engage in massive production and we must engage in massive spending too. What we have done is not a geniune approach to addressing the problem of the economy and getting outbof recession.”

Senator Biodun Olujumi representing Ekiti State said Nigeria is only technically out of recession but still languishing in economic quagmire.

He lamented that barely three months to the end of the year, the 2017 budget had not recorded 10% implementation. According to her, the major problem is that the economic managers were yet to develop a viable economic blue print.

Senator Gbenga B. Ashafa (Lagos East) the Senate expressed concerns that since the 2017 budget was assented to by the President, only about N310 Billion Naira has been released by the Federal Government to Ministries, Departments and Agencies as funding for capital projects.

He said the amount is far too low to stimulate the economy to address the Nigeria’s economic challenges;

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Weak Institutions Impede Nigeria’s Sustainable Development – Says US Don

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Renowned academician, Professor Augustine Okereke, from the Medgar Evers College/City University of New York, has emphasised the detrimental impact of a lack of strong social institutions on Nigeria’s sustainable development.

Presenting a lead paper at the First Annual Ibadan Social Science Conference hosted by the University of Ibadan, Professor Okereke urged President Bola Tinubu to foster robust institutions capable of combatting corruption and addressing social ills.

“All our institutions are on the decline,” warned Professor Okereke, underscoring the urgent need for effective structures to facilitate sustainable development. He highlighted the challenges faced by African countries, emphasising the risk of continued poverty, underemployment, and injustice without these foundational structures.

The Dean of the Faculty of Social Sciences at the University of Ibadan, Professor Ezebunwa Nwokocha, asserted the university’s commitment to providing intellectual, context-specific solutions to Nigeria’s challenges.

He called on state and federal governments to patronise researchers in the country, emphasising the faculty’s reputation for producing intellectual leaders.

Professor Nwokocha stated, “Our faculty is reputed for offering deeply intellectual, workable, and context-specific solutions to the challenges faced by Nigeria over the ages.” He emphasised the significance of the conference’s theme in aiding Nigeria’s navigation through its complex existential reality marked by despair, rising inflation, insecurity, corruption, and unemployment.

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During the conference’s opening, Vice Chancellor Professor Kayode Adebowale noted the relevance of the theme, “Social Science, Contemporary Social Issues, and the Actualization of Sustainable Development,” urging participants to generate transformative ideas for Nigeria.

Acknowledging the nation’s progress over 63 years, he expressed concern over setbacks in the economy and social indices, hoping the conference would proffer solutions.

In his keynote address, Professor Lai Erinosho stressed the rapid worldwide social change in the digital age, citing both benefits and unanticipated consequences for human survival. He cautioned against embracing same-sex relationships, citing dangerous implications for humanity.

The First Annual Ibadan Social Science Conference convened a diverse array of participants to explore solutions and intellectual leadership in addressing Nigeria’s pressing challenges.

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National Issues

Nigerians’ Wallets Under Strain As Inflation Soars to 28.92%

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As the country grapples with economic challenges, the latest figures from the National Bureau of Statistics (NBS) revealed a surge in the inflation rate to 28.92%, according to the December 2023 Consumer Price Index (CPI) released on a Monday afternoon.

The CPI, tracking the fluctuation in prices of goods and services, illustrates a notable increase from the previous month’s 28.20%, underscoring the pressing concerns surrounding the nation’s economic stability.

In a recent report, the Statistics Office revealed a notable uptick in the headline inflation rate for December 2023, marking a 0.72 percentage point increase from the previous month’s figure in November 2023.

On a year-on-year basis, the National Bureau of Statistics (NBS) highlighted a significant surge, with the December 2023 rate standing at 7.58 percentage points higher compared to the corresponding period in 2022.

December 2022 witnessed an inflation rate of 21.34 percent, underscoring the economic dynamics at play.

“This shows that the headline inflation rate (year-on-year basis) increased in December 2023 when compared to the same month in the preceding year (i.e., December 2022),” NBS said.

In a further revelation, the bureau disclosed that the month-on-month headline inflation rate for December 2023 experienced a 2.29 percent surge, surpassing November 2023 by 0.20 percent. This indicates a swifter rise in the average price level compared to the preceding month.

The report highlighted a concerning acceleration in food inflation, reaching 33.93 percent on a year-on-year basis for December 2023. This marked a substantial 10.18 percent points increase from December 2022’s rate of 23.75 percent. The data underscores the persistent upward trend in food prices, a trend exacerbated by various government policies, including the removal of subsidies on petrol.

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Notably, in July 2023, President Tinubu declared a State of Emergency on food insecurity to address the escalating food prices. Taking decisive action, the President mandated that issues related to food and water availability and affordability fall under the jurisdiction of the National Security Council, recognising these as essential livelihood items in need of urgent attention.

In Monday’s inflation report, the National Bureau of Statistics (NBS) detailed the key contributors to the year-on-year increase in the headline index. The leading factors include food & non-alcoholic beverages at 14.98 percent, housing water, electricity, gas & other fuel at 4.84 percent, clothing & footwear at 2.21 percent, and transport at 1.88 percent.

Additional contributors encompass furnishings & household equipment & maintenance (1.45 percent), education (1.14 percent), health (0.87 percent), miscellaneous goods & services (0.48 percent), restaurant & hotels (0.35 percent), alcoholic beverages, tobacco & kola (0.31 percent), recreation & culture (0.20 percent), and communication (0.20 percent).

The report highlighted a substantial 24.66 percent change in the average Consumer Price Index (CPI) for the twelve months ending December 2023 over the previous twelve-month period. This represents a significant 5.81 percent increase compared to the 18.85 percent recorded in December 2022, indicating ongoing inflationary pressures in the economy.

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Food Inflation

In a concerning trend, the food inflation rate for December 2023 surged to 33.93 percent on a year-on-year basis, marking a substantial 10.18 percent points increase from the same period in 2022, when the rate stood at 23.75 percent.

The National Bureau of Statistics (NBS) attributed this rise in food inflation to notable increases in the prices of various essential items. Key contributors include bread and cereals, oil and fat, potatoes, yam, and other tubers, fish, meat, fruit, milk, cheese, and eggs.

These price hikes collectively contributed to the intensified strain on consumers, highlighting the complex dynamics driving the upward trajectory of food prices.

“On a month-on-month basis, the Food inflation rate in December 2023 was 2.72 percent, this was 0.30 percent higher compared to the rate recorded in November 2023 (2.42 percent),” it said.

Clarifying the dynamics behind the recent uptick, the National Bureau of Statistics (NBS) explained that the month-on-month increase in food inflation for December 2023 was spurred by a heightened rate of escalation in the average prices of oil and fat, meat, bread, and cereals, potatoes, yam, and other tubers, as well as fish and dairy products like milk, cheese, and eggs.

“The average annual rate of food inflation for the twelve months ending December 2023 over the previous twelve-month average was 27.96 percent, which was a 7.02 percent points increase from the average annual rate of change recorded in December 2022 (20.94 percent),” the report added.

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National Issues

Nigeria Will Reclaim Lost Glory – Oseni

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A member of the House of Representatives, representing Ibarapa East/Ido federal constituency of Oyo state, Engr. Aderemi Oseni has expressed unwavering confidence in Nigeria’s ability to reclaim its lost glory.

Oseni, in his new year message, outlined a vision for a revitalised and thriving nation, emphasising the need for collective efforts in restoring Nigeria to its rightful position on the global stage.

Addressing the challenges that have hindered progress, the lawmaker in a statement by his media aide, Idowu Ayodele, outlined a comprehensive plan that includes restructuring, targeted legislative initiatives, community empowerment, and collaboration with key stakeholders among others.

Commending the resilience and determination of Nigerians, Oseni expressed optimism that Nigeria will rise again. He emphasised that restructuring is the solution to the various political, social, and economic challenges facing the country, highlighting that the call for a restructured Nigeria aims to restore the accomplishments achieved by the first-generation leaders.

“We believe that advocating for the country’s restructuring will position us better for individuals to unleash their talents, uplifting not only the local economy but also placing us where we truly belong in the international community”, the statement said.

The Chairman, House of Representatives Committee on Federal Road Maintenance Agency (FERMA) underscored the significance of unity, urging citizens to collaborate with the government led by President Bola Ahmed Tinubu in pursuit of a shared goal for national rejuvenation.

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Oseni specifically highlighted security, transformative infrastructure development, economic revitalisation, job creation, and educational reform as essential elements of the roadmap to restoring Nigeria’s lost glory.

The lawmaker pledged to collaborate with fellow progressive stakeholders to advocate for policies ensuring the safety of lives and properties, infrastructure development, employment opportunities, entrepreneurship support, attracting investments, fostering economic growth, and enhancing the nation’s standing across various sectors.

While extending New Year wishes to his constituents, Oseni additionally assured them of increased dividends of democracy, quality, and credible representation.

 

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