FG okays $42 oil benchmark for 2017 budget, pegs exchange rate at N290 to dollar

Published

8 years ago

August 25, 2016

Ooni flags off cooperative schemes for Ife, Modakeke widows

The Federal Executive Council (FEC), on Wednesday, approved the 2017 to 2019 Medium Term Expenditure Framework (MTEF), which recommended that the 2017 budget be predicated on oil price benchmark of $42.5 per barrel and N290 exchange rate to a dollar.

Minister of Budget and National Planning, Udoma Udo Udoma, who stated this while briefing State House correspondents after a regular meeting of FEC, presided over by President Muhammadu Buhari, said the document would consequently be transmitted to the National Assembly for necessary legislative action, as the next three budget would derive from it.

According to him, the MTEF, which was adopted after wide consultation with important stakeholders, highlighted the need for the Federal Government to sustain its efforts at diversifying the economy, as well as creating the enabling environment for business to thrive. “The Federal Executive Council meeting approve the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (SFP) for 2017 to 2019.

“As you know, the Fiscal Responsibility Act requires the executive to prepare the MTEF and send it on to the National Assembly for consideration and it is on the basis of the MTEFF that the next budget will be fashioned. “So, in short, we have started the process of preparing the 2017 budget. “Before the MTEFF was presented to FEC for consideration, there was an extensive consultation with the private sectors, governors, NGOs. “In the 2017-2019 MTEF, the government intends to intensify efforts in pursuing manpower-driven economy.

“So we intend to intensify effort to diversify the economy, we intend to go on with the implementation of ongoing reforms in public finance, we intend to enhance the environment for ease of business, so as to generate private sector and private investment. “Let me share with you some of the key parameters and assumptions which will be underpinning the 2017-2019 MTEF.

“Oil price benchmark: We intend to use $42.50 as a reference price in 2017. We are projecting $45 in 2018 and $50 in 2019. “So we are keeping to the very conservative in terms of the reference price of crude oil, though we are expecting it to go higher than this, but we are keeping to an extremely conservative price scenario.

“In terms of oil production, we are keeping to the same level of this year for 2017 and that is 2.2 million barrels per day; for 2018, 2.3 million barrels per day andfor 2019, 2.4 million barrels per day. “In terms of the currency, we are using the exchange rate, we are using N290 to $1. We believe that the naira will stabilise and we believe that N290 to $1 is a fair estimate from the Central Bank of Nigeria of what the naira is worth,” he said.

The crude oil benchmark in the current budget is $38, while the official exchange rate is N290 to a dollar. Speaking further, the minister said government intended to continue to pursue gender sensitive, pro-poor and inclusive social intervention schemes similar to what it was doing in the current fiscal year.

“Our social intervention programmes is going to be sustained. We intend to devote even more resources to critical infrastructure projects just as we did this year. “So we will continue to spend more on roads, rail transport infrastructure, ports and so on. We intend to focus on plane governance and security and we intend to maintain the zero-based budgetary approach,” he said. On the projected growth rate of the economy, Udoma noted that government was targeting “in 2017, a three per cent growth rate; 2018 a 4.26 per cent growth rate and in 2019, a 4.04 per cent growth rate.

In the meantime, the Ooni of Ife, Oba Adeyeye Ogunwusi Ojaja II, yesterday flagged off five licensed cooperative societies as part of his Widows Empowerment Programme initiated early this year.

Ogunwusi, while addressing the widows numbering about five thousand from across Ifeland including Modakeke appealed to the well-to-do people in the society to assist the government in eradicating poverty facing the downtrodden in the country, especially widows.

He said the cooperative initiative was developed to empower the widows, who are mostly victims of Ife/Modakeke communal war several years ago for a self-reliance and also promised not to stop his monthly donation of food and cash.

The monarch said he has deposited a sum of N2.5 million in Olofin Microfinance Bank, Ile-Ife as a take-off grant to enable the widows have access to loans for their businesses.

He said the idea of assisting them came when some widows visited him with gifts when he ascended the throne late last year and urged them to make use of the loan sincerely because the loan which requires no collateral when repaid will be given out to others.

Punch with additional report from Vanguard

WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

Published

5 years ago

April 13, 2019

Maritime First

…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development.

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity.

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years.

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further.

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA.

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers.

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being.

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained.

Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

Published

6 years ago

March 7, 2019

Maritime First

The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

Wind Farm Vessel Collision Leaves 15 Injured

Published

6 years ago

February 20, 2019

Maritime First

…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg.

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt.

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital.

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News