THE House of Representatives on Thursday pegged the oil benchmark for the 2014 budget at $79, contrary to the $76 benchmark proposed by the Executive.
The legislators, in passing the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF) yesterday vowed not to shift ground on the benchmark. The Senate on Tuesday passed the document .
With the passage of the MTEF by the two chambers, the coast is now clear for the presentation of 2014 budget proposal by President Goodluck Jonathan.
The passage of the MTEF was with serious disagreements amongst the lawmakers. Though it was done in a closed session, it was learnt that it turned out an opportunity for the PDP members, their colleagues loyal to Baraje faction and the All Progressives Congress (APC) to test their strengths.
While 62 lawmakers voted for $76, 79 lawmakers, mainly of APC and splinter PDP members insisted on $79.
Adopting the recommendations of the report on the MTEF and FSP submitted by the committees on Finance, Budget abd Research and Aid, Loans and Debt Management, the lawmakers also fixed the average crude oil production at 2,3883, 2,5007, and 2,5497 million barrels per day for 2014, 2015 and 2016 respectively.
The average exchange rate of N160 to a dollar was approved for the next three years with corporate tax fixed at 30 percent and Value Added Tax (VAT) at 5 percent respectively.
Other recommendations include that, “the government should strengthen and consolidate its fiscal strategy to narrow the gap between projected and actual revenue for the period 2014-2016 curtailing oil theft and diversifying the economy to increase tax bases so as to increase tax revenue”.
It also asked the executive that “the details of SURE-P projects to be executed be attached as an addendum to the annual budget estimates for approval by the National Assembly”.
On the Excess Crude Account (ECA),the lawmakers approved that ‘the distribution to the tiers of government of N666.9 from the excess crude account as proposed by the executive” and “augmentation from the ECA should be projected crude production fall below budgeted, provided there are funds in the account”.
Meanwhile ,the House ad hoc Committee on Land Swap chaired by Hon Bimbo Daramola has invited the Secretary to the Government of the Federation (SGF), Pius Anyim and the Minister of Aviation of Aviation, Stella Oduah over the planned construction of a new city near airports in Abuja.
The two are expected to explain the justification for the land to be acquired for the purpose of constructing the Centenary city as well as the roles to be played by a company specifically floated for the purpose of the city.
The invitation followed the submission of the FCT Minister, Bala Mohammed at the investigative hearing yesterday that the FCT administration has not yet allocated any land for the Centenary City.
We should not inflict pains on Nigerians just because we are celebrating 100 years. The interest of Nigerians should be paramount regardless of whatever any investor is bringing into the project.
On the Centenary project, we will however advise the Minister to proceed with caution, so that when Bala Mohammed leaves office, as a country, we don’t go back 100 years.
The Centenary city, a leisure and tourism center that will cover 1200 hectares is part of proposed legacies for the country’s 100 years of nationhood.
The Bimbo Daramola-chaired panel was however shocked by the Minister’s revelation going by a petition by 186 land subscribers in Goza Estate.
The lawmaker said, “The SGF and the Aviation Ministers are put on notice to appear before the ad hoc Committee to brief us about the project.
According to the petitioners, the reason given by officials of the Federal Capital Development Administration (FCDA) before their houses were pulled down was that the land has been allocated for the constitution of the Centenary City.
However, in his presentation, the Minister revealed that though a Memorandum of Understanding (MoU) has been reached with a developer but that no land has been allocated yet.
He also said though the FCT has not allocated any land to developer under the land swap arrangement that will affect 17 villages but that the FCT stands to rake in N993b as well as one million direct jobs from the scheme.
Mohammed also told the Committee that out of over one million applications for land, 16,069 land allocations have been made since 2010 while almost 89,000 allocations are pending for approval.
The Minister, who said over 737 land titles have recently been revolved however revealed that some officials of the FCT have been apprehended for conspiracy for arbitrarily revoking land allocations.
He said the FCT is having 87,789 land cases pending in various courts but has paid over N4b in compensation while it has N200b outstanding in compensation.
The Minister said the FCT under his administration had to resort to the land swap arrangement for the development of the FCT and its satellite towns because the huge infrastructure deficit
1,588 land allocations have been granted necessary documents for mass housing scheme while 136 corporate bodies have been allocated land for the same purpose in the Satelite towns
According to him the administration would require N480m annually for five years to bridge the deficit.
He said the FCT is currently at 30 percent developed in infrastructure.
The Minister said contrary to wide-held believe in some quarters that the investigation was about ‘witch-bunting, ‘the proceeding of the day showed that the panel was acting in the best interest of the country.