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Reps empower Buhari to borrow $1.5bn, €995m

Reps empower Buhari to borrow  $1.5bn, €995m image
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The House of Representatives on Thursda#y approved a request by the President, Major General Muhammadu Buhari (retd.), for the Federal Government to make external borrowings of $1.5bn and €995m.

The House Committee on Aids, Loans and Debt Management had laid its report on the presidential request on April 21, 2021, same day the Senate approved the loan.

Chairman of the committee, Ahmed Dayyabu, prayed the House to receive a report ‘on the request for the approval of external loans to finance the priority projects of the Federal Government’.

In the report, the committee recommended that the House “approve the External Borrowing Plan of $1.5bn  and €995m’ and ‘that the terms and conditions of the loans from each lender as contained in a duly executed loan agreements be forwarded to the National Assembly for proper documentation.”

The report was unanimously adopted.

Similarly, the House considered and adopted the report by the Committee on Customs and Excise on the proposed budget of the Nigeria Customs Service for 2021.

Chairman of the committee, Leke Abejide, while laying the report on April 21, prayed the House to approve the from the Statutory Revenue Fund of the Nigeria Customs Service the total sum of N1.68tn. (adsbygoogle = window.adsbygoogle || []).push({});

In the report, the committee said the NCS’ expected revenue from the seven per cent collection and 60 per cent from the comprehensive Import Suspension Scheme was the sum of N257.18bn, out of which N99.72bn is for personnel cost, while the sum of N19.53bn is for overhead cost and the sum of N137. 93bn is for capital cost  for the year ending on December 31, 2021.

The report partly read, “The committee consider initial target of N1.47tn inadequate and as such increased it to N1.68tn based on the following factors:

“The target for 2021 fiscal year is less than N1.56tn collected in 2020 by NCS, the expanded excisable item to include carbonated drinks, reduction of levy on new vehicles and devaluation of naira that will increase volume of money collected in naira term.”

The committee also recommended “that the seven per cent cost of collection for 2021 of N111.57bn being projected revenue available to the service be approved for the Nigeria Customs Service.

“That the two per cent VAT (Value Added Tax) share for 2021 of NCS from N375bn, which is N7.5bn available to the service be approved for the Nigeria Customs Service.

“That the 60 per cent share of Comprehensive Import Supervision Scheme of N47.01bn for the 2021 intervention fund from the CISS be approved for the Nigeria Customs Service.

“That the Retained Earnings of N91.10bn be approved for the Nigeria Customs Service for 2021 fiscal year.

“That the total personnel cost of N99.72bn be approved for the Nigeria Customs Service for 2021 fiscal year.

“That the total overhead cost of N19.53bn be approved for the Nigeria Customs Service for the 2021 fiscal year.

“That the total capital cost of  N137.93bn be approved for Nigeria Customs Service for the 2021 fiscal year.

“That the total budget of N1.68tn be approved for Nigeria Customs Service for the 2021 fiscal year.

“That the Central Bank of Nigeria should as matter of urgency procure the four scanners for Nigeria Customs Service from the best scanners manufactures either from Germany or America but not China made scanners.”

Also on Thursday, the House considered and adopted the report by the Committee on Finance on the 2021 budget proposed by the Federal Inland Revenue Service, which was laid on April 21, 2021.

In the report presented by the Chairman, James Faleke, a total sum of N216.65bn was approved for the FIRS, out of which the sum of N107.52bn is for personnel cost, while the sum of N56.47bn is for overhead cost, and the sum of N52.66bn is for capital project for the year ending December 31, 2021. (adsbygoogle = window.adsbygoogle || []).push({});

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