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The House of Representatives yesterday said it might deny approval for this year’s N4.6 trillion budget, unless the 31 agencies listed in the Fiscal Responsibility Act surrender their spending estimates for scrutiny as required by the law.

While the departments are exempted from routine annual budgeting, the Act demands that their financial plans for each year be tendered to the legislature by the Minister of Finance alongside the rest.

Section 21 of the 2007-legislation requires that the organisations, including mega groups like as the Central Bank of Nigeria, Federal Inland Revenue Service and the Nigeria National Petroleum Corporation, lay the proposals before the National Assembly through the Minister of Finance.

Lawmakers say that this requirement has not been followed over the past years, arguing that the failure has been used as a cover by the organisations to unilaterally spend internally-generated funds without approval.

But, in a conflict seen as a highlight of the ambiguity of some federal laws, the 31 bodies, which also include the Securities and Exchange Commission and the Bureau of Public Enterprise, insist that the laws backing their creation granted them the needed waiver and the authority to spend such funds as they deemed fit.

The controversy escalated late last year, with the lawmakers insisting on the law after the CBN governor, Sanusi Lamido, accused the National Assembly of cornering 25 per cent of the national budget.

Yesterday, the House rescinded an earlier resolve to speedily pass the 2011 budget next week, warning that it would no longer do so until the 31 organisations forward their estimates as earlier directed.

Out of control

“We are not just going to pass the budget like that. The 2011 budget will not be passed without the budgets of the thirty-one agencies,” the deputy speaker, Usman Nafada, said while addressing concerns on the issue raised by many members.

“Their overhead is more than that of the entire nation. And such huge amount of money should pass through the purview of the people’s parliament, nobody is above the law,” he added. “The fact that your brother is the head of an agency today does not mean that you should not obey the law. Nobody is above the law.” As of yesterday, he said, only four organisations had heeded the call to adhere to the law; a call first made by the speaker, Dimeji Bankole, during budget presentation by President Goodluck Jonathan last year.

Committee chairmen spoke of their frustrations with the organisations that had refused to surrender the proposals. They threatened to sanction heads of the departments while agreeing that the budget be suspended until the directive is carried out.

Earlier setbacks

The passage of the 2011 budget suffered the same fate in the upper legislative chamber. Iyiola Omisore, chairman Senate Committee on Appropriation had on the 28 February written to the Senate President, David Mark that the 31 agencies must submit their spending estimates for 2011. Mr Omisore insisted that this is in line with Section 21 subsection (1) (2a,b) and 3 of the Fiscal Responsibility Act (FRA) and it must be complied with before the final passage of the 2011 budget.

The Labour Party yesterday commenced its gubernatorial campaign in Jos with a pledge to calm frayed nerves and restore the old glory of Plateau State as “home of peace and tourism”. Addressing a mammoth crowd of supporters at the Polo playground venue of the event, the national chairman of the party, Dan Iwuanyanwu, said it was regrettable that the image of Plateau has been destroyed by internecine fighting.

“I want to assure you all that come May this year, the Labour Party will give you a government that you desire,” Mr. Iwnanyanwu told supporters. “It is unfortunate that the government in place cannot guarantee you safety and peace.” He said the PDP government has continued to watch helplessly as an orgy of violence goes on and claiming the lives of innocent people.”

Mr. Iwuanyanwu described the Labour Party as a source of hope and justice for the ordinary Nigerian, adding that “any one who is not part of this event, who is not here to participate and behold this great day and moment, is an enemy of Plateau State.

Change is possible

Speaking after receiving the flag of the party as its gubernatorial candidate in the April elections, Plateau State deputy governor, Pauline Tallen, paid tribute to the Labour Party, acknowledging that the event is a culmination of a process of struggle to liberate the people of Plateau state. With a campaign slogan tagged “change is possible”, Mrs. Tallen said everyone in the state need a change from bad and ineffective governance to good leadership.

“We desire a change from violent crises, chaos and destruction to the era of peace”, she said, promising to bring reconciliation of all ethnic groups in Plateau State by running an all-inclusive government.

“We all desire a change from exclusive government to an all-embracing government”. Harping on why she fell out with her boss, the governor of the state, Jonah Jang, Mrs. Tallen said a change from tribal government to a government that all stakeholders have a role to play is necessary to bring about reconciliation and restore confidence and bring back the lost glory of the state. Former governor, Joshua Chibi Dariye, John Shagaya and Lumumba Da Adeh were presented with party flags as senatorial candidates for Plateau Central, South and North respectively.

Sixteen members of the State House of Assembly, who followed Mrs Tallen into the Labour Party from the PDP were also presented with flags. Earlier, tragedy struck in Kassa, about 20 kilometres south of Jos, when two buses collided. Police authorities confirmed that 12 persons died in the accident, while 21 others sustained various degrees of injuries. The police statement signed by Apev Jacob, the police spokesperson, said “the cause of the accident is being investigated”.

The presidential candidate of the Action Congress of Nigeria (ACN), Nuhu Ribadu, has challenged the People’s Democratic Party (PDP) candidate, President Goodluck Jonathan, to a debate. Mr. Ribadu, who made the remarks in a release made available to NEXT by its campaign organisation yesterday, said that since 1999, PDP presidential candidates had been shying away from debates because they had nothing to offer, adding that the present state of the nation was a clear testimony to the fact that PDP had no meaningful agenda for the nation.

Mr. Ribadu said that in spite of the fact that the price of crude oil had been selling well above the benchmark price, the PDP-controlled government had not been able to address the critical issues of power and poverty in the country.

Acoording to the ACN flag-bearer, President Jonathan, a Ph.D holder, should be bold enough to face Nigerians to tell them what plans he has for the nation and how he intends to implement such plans. He said gone were the days when politicians would mount the soap box to make empty promises which would eventually leave the country in a worse state than they met it. Mr. Ribadu, however, said that as a presidential candidate, he had well-articulated and thought-out plans that he was ready to defend before Nigerians. It was reported recently that the PDP had given a condition for the hosting of a presidential debate among the different candidates vying for the presidential seat, which had caused a setback in the conduct of the debate.

The International Monetary Fund (IMF) has denied making any recommendation for the devaluation of the naira.

Country chief/senior resident representative of the fund, Scott Rogers, who spoke with reporters yesterday in Abuja, said the fund merely ask for the adoption of a more flexible approach to the exchange rate management by the Central Bank of Nigeria (CBN), saying this would reduce the pressure on the naira.

He restated its demand for Nigeria’s commitment to set a more specific inflation objective in the range of 5-10 per cent to help reduce growing inflation on the economy.

Devaluation not recommended

He denied that the fund recommended the devaluation of the naira based on the assessment contained in its 2010 staff report.

According to him, “During the discussions, the IMF had, at no time, recommended the devaluation of the naira. What we recommended was a more flexible approach to the exchange rate,” considering that “sometimes exchange rate would depreciate, and at other times it would appreciate or strengthen.

“In the staff report submitted to the board of directors for discussion, our recommendation was for the Central Bank to focus more on price stability to bring inflation down, while focusing less on maintaining a particular exchange rate, in other words plus or minus 3 per cent,” Mr. Rogers said.

The IMF rebuttal follows recent rejection by stakeholders, including the CBN governor, Sanusi Lamido Sanusi, of the basis of the recommendations considered to be negative on the country’s economy.

The 2010 Article 1V Staff Report had recommended a four-point agenda for implementation by the country to consolidate the successes recorded so far by government’s economic reforms.

The recommendations included commencement of fiscal consolidation in the 2011 budget at 6 to 7 per cent of non-oil GDP, to rebuild policy buffers and support monetary policy in reducing inflation; monetary policy focus on reducing inflation, while allowing for more flexibility in interest rates and the exchange rate.

The other recommendation included a strong oil revenue-based fiscal rule to insulate the economy from the volatility in oil revenues; addressing the legal and institutional weaknesses of the current stabilisation mechanism by establishing a Sovereign Wealth Fund (SWF), as well as inclusion of oil revenue rule in legislation to strengthen macroeconomic management.

“If Nigeria is going to devalue the national currency, it is her sovereign responsibility. To recommend devaluation is to say that the exchange rate should be pegged at a specific value. We feel that the CBN and the government should give focus on specific monetary policy objective and allow some flexibility in the foreign exchange market. If Nigeria were to decide to have a peg, that’s Nigeria’s decision and not IMF’s,” he said.

Pointing out that there are oil producing countries like Saudi Arabia and Kuwait that have pegs that are working for them, while others have pegs that are not working, like Venezuela, he said the country’s economy has shown resilience in the face of pressures from the global economic crisis, with non-oil sector growth rate in 2008 at 9 per cent and 2009 at 8.3 per cent as well as 7.9 per cent in 2010, pointing out that despite the collapse in the global oil prices and the country’s banking sector crisis, the projection for 2011 and 2012 remain strong at 7.7 and 7.5 per cent respectively.

The IMF chief noted the rapid growth of the real economy, though fiscal policy in 2010 had become highly pro-cyclical, as indicated by about 40 per cent increase in government spending, as oil revenues grow at a time of strong economic growth and relatively high inflation, resulting in more pressures and demand for the provision of services and facilities the country produces or imports.

The problem, he pointed out, is worsened by the fact that commitment to the price stabilisation policies of the government, particularly the management of the Excess Crude Account (ECA) and the crude oil benchmark price, has weakened over time.

Though government did well in the management of the ECA in the early years, Mr. Rogers said, even with the oil production rising and prices above benchmark levels, there are a lot of withdrawals and spending at a time the country was expected to be accumulating international reserves.

Similarly, he said the CBN monetary policy for 2010 was fairly accommodative, with very low credit policy rates and conditions, particularly interest rate on standing deposit facility with apex bank for most part of the year at 1 per cent, while the rate for 91-day treasury bills was at 2 per cent on government securities.

Other key issues, he said, included the country’s low domestic interest rates, declining external reserve, high inflation at a period that most oil exporting nations are rebuilding their external reserves and strengthening their current account balances.

President Goodluck Jonathan has assured Nigerians that the country’s moribund rail system will begin to function before the end of the month.

Addressing a rally in Osogbo, Osun State, yesterday in continuation of his presidential campaign, Mr Jonathan said that the rail line between Lagos and Jebba will be completed in March and open for operation.

“I have just received a report from the Chairman of the Nigeria Railway Corporation that by the end of this month, segment of railway between Lagos and Jebba would be completed and people will begin to board train from Osogbo,” he said.

Mr Jonathan also called for unity amongst Nigerians, saying it is only through unity that the nation can make progress, adding that his administration will pursue policies that will help cement the unity of the country.

The President assured the youth that his administration will do all it can to provide them good education and job opportunities.

He said, “We have formidable youth in Nigeria and we are going to use them maximally for the benefit of this country. They are needed to stimulate our economy for the development of our great country.”

While pledging to transform the economy of the country within the next four years, President Jonathan assured the people of the state that the ongoing dam projects in Ilesa and Ile-Ife will be completed by his administration to boost agricultural production in the state.

He also said the federal government will look into the commercial viability of the solid mineral deposit in the state.

Traffic jam

It was difficult to move along major streets in Osogbo during the visit and security was beefed up in strategic places. Some of the roads leading to the Osogbo city stadium, venue of the rally, were also blocked off. The event also interfered with commercial activities in the state as major markets in the state capital, including the popular Igbona market located at the stadium road, was closed down to ensure free flow of traffic to the stadium while the campaign lasted.

Security agents in the state had a hectic time controlling traffic along major roads in the state, especially the new Ikirun road which leads to the venue of the stadium.

Commercial drivers were prevented from plying the road which leads to Kwara State and some other parts of the country as security men stationed on the road diverted vehicles to other roads.

As early as 7.00 am yesterday officers of the Nigeria Army, Nigeria Police, State Security Service and Nigeria Security and Civil Defence Corps were present at strategic locations in Ile-Ife and Osogbo.

The President was received by the Ooni of Ife Oba Okunade Sijuwade. After the courtesy call on the traditional ruler, Mr Jonathan also visited the Ataoja of Osogbo, Jimoh Olanipekun before he addressed the stadium rally.

The President was accompanied by Vice President Namadi Sambo, the National Acting Chairman of the Peoples Democratic Party, Bello Mohammed, Speaker of the House of Representatives, Dimeji Bankole, Kwara State Governor, Bukola Saraki, Minister of Youth Development, Olasunkanmi Akinlabi and members of the National Assembly.

For announcing a ban on its presidential rally billed for Abakalili, the Ebonyi State capital, on Monday, the All Nigeria Peoples Party (ANPP) yesterday asked President Goodluck Jonathan to call the governor of the state, Martins Elechi, to order.

The national chairman of the party, Ogbonnaya Onu, who stated this at a press conference in Abuja on Thursday, also denied Mr. Elechi’s allegation that he once planned to join the ruling Peoples Democratic Party (PDP).

The opposition party is planning to kick off its presidential campaign in Abakaliki on Monday. But Mr. Elechi, last Wednesday, in a special broadcast to the people of the state, accused the ANPP of planning to unleash violence in the state. He also said his government had stopped the ANPP from holding its rally in Abakaliki, saying the Peoples Democratic Party already had permission to hold a national flag day event in the town.

He said if the ANPP is allowed to hold its rally, it would overstretch the existing facilities in the town.

But Mr. Onu, a former governor of old Abia State, which the present Ebonyi State was part of, said Mr. Elechi had no powers to stop the rally of a political party.

“I wish to point out that Elechi has no right under the constitution of the Federal Republic of Nigeria to prevent any political party from holding a rally. It is the height of intolerance for him to seek to do so. No one can and should be allowed to be above the law or act in a way to disrespect our constitution,” Mr. Onu said.

“The president should, with a sense of urgency, act with speed to call the governor of Ebonyi State to order. The governor of Ebonyi State should be made to subject himself to both the letter and spirit of the constitution, which he swore to preserve, protect, and defend,” Mr. Onu said.

Saying Mr. Elechi’s pronouncement is “completely in bad faith, unfair, and totally unacceptable to our great party,” the ANPP boss also asked all law enforcement agencies to take due notice of the dangerous trend emanating from a serving governor.

He said there was no problem when a sister political party, the Congress for Progressive Change, kicked off its presidential campaign in Kaduna, the home state of the vice president, Namadi Sambo.

On Mr. Elechi’s allegation that he (Onu) is violent, the ANPP chairman expressed surprise that someone occupying such a high office as the governor could be involved in such ridiculous attempt to blackmail him.

“I feel happy that integrity is like good conscience, which can only be healed by the truth and nothing but the truth. As a decent, God-fearing democrat, I will not yield to the temptation to join issues with him.”

Mr. Onu, who contested the governorship election against Mr. Elechi in 2007 under the ANPP platform, stated that the people of Ebonyi State knew the circumstances surrounding the outcome of the poll.

“They know who won that election and they know those who stole their mandate, despite the outcome of the subsequent litigations in both the Election Petitions Tribunal and the Court of Appeal which sat in Enugu. I leave the inevitable verdict of history in that matter squarely in the hands of God, the ultimate judge in the affairs of all mortals,” he said.

Mr. Onu also denied the allegation made by the governor that he made overtures to join the PDP when Vincent Ogbulafor was its national chairman.

“As it is widely known, I do not subscribe to the idea of people moving from one party to another. I believe that there is honour in identifying with a political party of one’s conviction.

“Moving from a party in opposition to another in government solely for personal gain cannot advance the cause of democracy. I know and I am convinced that not too long from now, our party will be in government to render service to our people,” he said .

Special Adviser to President Goodluck Jonathan on National Assembly matters, Muhammed Abba Aji, has denied ever saying that it is impossible for the Igbos to become president in 2015. “I have not in any time made such statements,” Mr Abba Aji told reporters in Abuja on Thursday. “Contrary to this statement, I strongly believe that my Igbo brothers and sisters have equal rights with all members of other ethnic groups of our nation to seek any public office including the exalted office of the Federal Republic of Nigeria.” He was reported to have said that if Mr Jonathan wins the 2011 elections, Namadi Sambo, the current vice president will step in to fill that position in 2015 if the president keeps his promise of ruling only one term.

“The statement as it relates to Vice President Namadi Sambo is entirely my personal view, which he neither desired nor solicited. I therefore hereby withdraw it, and regret any misunderstanding that it might have generated.” On the Freedom Of Information Bill, the Special Adviser also adjusted his earlier comments. Rather than his earlier stand that he will ensure that the president does not sign the bill into law when it is eventually passed by the Senate, Mr Abba Aji said he was just pointing out the ills of the bill.

“What I did was to draw attention to the conflict that in my view, it is likely to have with the seventh schedule of the Constitution of the Federal Republic of Nigeria as it relates to the oath of office and the Official Secrecy Act which is yet to be repealed.

“I also tried to make distinction between the Freedom of Information Bill, which seeks to compel public officers to reveal official matters and the Freedom of the Press which is already enshrined as section 39 of the Constitution.” Mr Abba Aji had said, in Maiduguri, that he was disappointed in the House of Representatives for passing the bill. He said he expected the senate to throw it out, or he would be left with no option but to advise the president not to assent to the bill.