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The Star
28-05-2025
- Business
- The Star
Nigerian gov't says external borrowing within sustainable limits
ABUJA, May 28 (Xinhua) -- The Nigerian government said Wednesday that it will continue to borrow within manageable limits and per the country's debt sustainability framework while refuting allegations of overborrowing from concerned citizens. In a statement issued Wednesday in Abuja, the Nigerian capital, the Federal Ministry of Finance said the most populous African country has adopted a structured, forward-looking approach that facilitates comprehensive financial planning and avoids the inefficiencies of ad-hoc or reactive borrowing practices. The statement responded to reactions from citizens questioning a recent request from President Bola Tinubu to the National Assembly for the approval of the 2024-2026 external borrowing rolling plan, also known as the Medium-Term Expenditure Framework, under both the Fiscal Responsibility Act 2007 and the Debt Management Office Act 2003. Tinubu has requested the National Assembly's approval to secure external loans of 21.5 million U.S. dollars and 15 billion yuan, along with a grant of 65 million euros, as part of the Nigerian government's proposed external borrowing plan. The proposed borrowing will be sourced mainly from the country's development partners, including the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, the Export-Import Bank of China, and the Islamic Development Bank. "This strategic method enhances the country's ability to implement effective fiscal policies and mobilize development resources," the official statement said. "The plan outlines the external borrowing framework for both the federal and sub-national governments over three years, accompanied by five detailed appendices on the projects, terms and conditions, implementation period, and others." The borrowing plan does not equate to actual borrowing for the period or an automatic increase in the nation's debt burden, said the statement, noting that the actual borrowing for each year is contained in the annual national budget. In 2025, the external borrowing component is 1.23 billion dollars. According to the statement, the nature of the rolling plan means that borrowings are split over the period of the projects, with a large proportion of projects in the 2024-2026 rolling plan having multi-year drawdowns of between five and seven years, which are project-tied loans. It added that these projects cut across critical sectors of the economy, including power grids and transmission lines, irrigation for improving food security, fiber optics networks across the country, fighter jets for security, and rail and road infrastructure.
Business Recorder
05-05-2025
- Business
- Business Recorder
Tax revenue target for 2025-26
The process of preparation of the federal and provincial budgets is underway now and the respective budgets will be announced in the earlier part of June 2025. One of the crucial determinants of the size and level of fiscal effort is the overall tax revenue target for 2025-26. This article will attempt to make the likely revenue projections for the federal government and the four provincial governments combined. The first step will be to estimate the likely revenue outcome in 2024-25 of tax revenues. Thereafter, a disaggregation is undertaken of tax revenues into FBR revenues, petroleum levy revenue and provincial tax revenues. A comparison is made with the projections in the IMF Programme for 2024-25, after incorporation of changes following the review mission by IMF staff in March. The target for 2024-25 of total tax revenues is Rs 14,954 billion, as given in the IMF Staff report. Over 86 percent is to come from FBR revenues, with the target at Rs 12,913 billion. The remainder is Rs 1,123 billion is from the Petroleum Levy and other levies and Rs 918 billion from provincial tax revenues. The overall growth rate targeted in tax revenues in 2024-25 is an ambitious 34 percent. FBR revenues are expected to show even faster growth of 38.7 percent. Provincial tax revenues are projected to increase by 18.6 percent and the Petroleum Levy by only 4.6 percent. The information on total tax revenues in the first six months has been released by the Federal Ministry of Finance. The overall growth rate is 24.6 percent. This is significantly lower than the target growth rate of 34 percent. As such, there was already a revenue shortfall of Rs 500 billion by the end of December. The latest numbers up to the end of March 2025 are available of the total revenue collection by the FBR. It stands at Rs 8,464 billion, with a shortfall already of over Rs 700 billion. Provincial tax revenues continue to exhibit low growth. However, the rates of Petroleum Levy have been enhanced with falling international price of oil. Consequently, additional revenues of up to Rs 100 billion are likely to accrue from this source. Based on the performance in the first nine months, the projected outcome of FBR revenues in 2024-25 is likely to be close to Rs 11,800 billion. This implies an annual shortfall of over Rs 1,100 billion. In fact, FBR is unlikely to even meet the downward revised target in agreement with the IMF of Rs 12,300 billion, following the March Staff mission. Total tax revenues are projected now at Rs 13,700 billion in 2024-25. This means that there will be a shortfall of up to Rs 1,250 billion. However, it is important to note that the target in the IMF Programme for total tax revenues was 12.3 percent of the GDP, thereby leading to a big increase in the tax-to-GDP ratio of 1.8 percent of the GDP in 2024-25. The nominal GDP level is likely to be lower in 2024-25 than the initially projected level by the IMF. Consequently, the total tax revenues are likely to approach 11.8 percent of the GDP. Therefore, the shortfall will be relatively small at 0.5 percent of the GDP. The next year's target in the IMF Programme of FBR revenues is of Rs 15,070 billion. With projected revenues in 2024-25 of Rs 11,800 billion, this will require achievement of a relatively high growth rate of almost 28 percent. The various tax bases are currently showing low nominal growth rates because of the colossal drop in the rate of inflation. As such, a target growth rate of FBR revenues of 28 percent borders on being unrealistic. The IMF Programme expects the FBR revenue to GDP ratio to rise to 11.0 percent of the GDP, as per the original projections in 2025-26. With the revenues at close to 10 percent of the GDP this year, a feasible target is 11 percent of the GDP in 2025-26, so that the original target for 2025-26 is met. The likely rate of increase in the nominal GDP in 2025-26 is 14 percent. As such, the appropriate target for FBR in 2025-26 is Rs 14,370 billion. This will imply a growth rate of 21.8 percent. The original target of Rs 15,000 billion requires a significantly higher underlying rate of inflation in the economy in 2025-26. The focus next year is also likely to be on provincial tax revenues. An extraordinary growth rate of 74 percent has been targeted for these revenues in 2025-26. Clearly, this is based on the expectation that the new Agricultural Income Tax law will be implemented from July 1st, 2025 and substantial additional revenues of over Rs 500 billion will be collected in 2025-26. A recent estimate in the RASTA research project of the Pakistan Institute of Development Economics is that the potential revenue from the agricultural income tax on crop income is Rs 880 billion, on the tax base of 2023-24. This is equivalent to 0.8 percent of the GDP. Therefore, subject to proper assessment of individual tax liability and effective collection, revenue of Rs 500 billion from the agricultural income tax is feasible. The petroleum levy has been targeted to yield Rs 1,193 billion in 2025-26. The significant fall in oil prices should enable the target to be enhanced to Rs 1,400 billion. Overall, a summary is presented below of the likely outcome in 2024-25 and feasible targets in 2025-26 of tax revenues. The above targets will enable achievement of the overall target for tax revenues in 2025-26 as envisaged in the IMF Program of 13 percent of the GDP. =========================================================== Tax Revenues (Rs in Billion) =========================================================== 2024-25 2025-26 (Projected) (Target) =========================================================== FBR Revenues 11,800 14,370 Provincial Tax Revenues 840 1,470 Petroleum Levy 1,300 1,400 Total Tax Revenues 13,940 17,240 % of GDP 11.8 13.0 =========================================================== Copyright Business Recorder, 2025
Daily Express
23-04-2025
- Politics
- Daily Express
Kampung Inderasabah gets RM1 million under adoption initiative
Published on: Wednesday, April 23, 2025 Published on: Wed, Apr 23, 2025 By: Amir Anuar Text Size: Nizam (left) and Dr Jamaluddin at the press conference. TAWAU: The Federal Ministry of Finance has approved an allocation of RM1 million to the Eastern Sabah Security Command (Esscom) for the implementation of the Kampung Angkat Madani initiative this year. The approval was welcomed by Kampung Inderasabah residents, the only settlement in the Eastern Sabah Security Zone (Esszone) selected for the programme. Esscom Chief Executive Officer Datuk Dr Jamaluddin Mohd Ali said the primary focus is on improving infrastructure and the wellbeing of the community. 'Among the initiatives already identified are installing lighting in dimly lit roads, upgrading the jetty and enhancing security measures in Inderasabah,' he said. He said this after co-chairing the Mesyuarat Penyelarasan Program Kampung Angkat Madani Esscom with Apas Assemblyman Datuk Nizam Abu Bakar Titingan at the Tawau Municipal Council, here, Tuesday. Jamaluddin said six villages in Sabah were selected as Kampung Angkat Madani, but Inderasabah is the only one chosen in the Esszone as it meets the specified criteria. 'If this programme proves successful in Inderasabah, we may expand a similar model to other areas in Esszone, such as Kudat, Sandakan, Beluran, or Semporna,' he added. When asked about the selection criteria for Inderasabah, he said the village is exposed to cross-border criminal activities such as fuel smuggling and sea robberies. The selection also considered the village's geographical proximity to Indonesian and the Philippine waters, as well as the strong unity among its residents. 'Additionally, an extra allocation of RM200,000 has been set aside for programmes under the Technical and Vocational Education and Training (TVET) sector. 'We have also selected SK Lihak-Lihak in Semporna as a Sekolah Angkat Madani with an allocation of RM100,000 following discussions with the State Education Department,' he said. On security matters, Deputy Tawau District Police Chief Supt Champin Piuh said the situation in Inderasabah is under control, with only three isolated crime cases recorded. 'In terms of security, we have a General Operations Force checkpoint in Inderasabah, along with maritime surveillance by the marine police,' he said. Meanwhile, Nizam, who is also Assistant Minister to the Chief Minister, expressed gratitude that the village under his constituency was chosen for the programme. 'I am confident this programme will bring significant impact and add value, particularly in social activities related to improving the residents' economy and border security,' he said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Zawya
18-04-2025
- Business
- Zawya
Nigeria: FG launches BisonFly project to cut costs across federal air travels
In a bid to ensuring cost savings across all air travels, the Federal Government has launched the BisonFly Project to optimise air travel costs for the Federal Civil Service through a structured, optimised, and technology-driven discount programme. Inaugurating the Project team in his office on Thursday, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stated that the BisonFly project is a strategic initiative designed by the Federal Ministry of Finance to reduce the cost of air travel across the Ministries, Departments, and Agencies (MDAs) of the Federal Government through a centralized, technology-enabled system. The system will integrate digital booking tools and centralised platforms, ensuring transparency and efficiency in official travel arrangements, and it is expected to go live in the coming months. Mohammed Manga, Director, Information and Public Relations said the Minister emphasised the importance of institutional reform in achieving sustainable cost savings. Edun said, 'Project BisonFly directly supports our commitment to prudent financial management. 'By coordinating travel and securing discounted rates, we are using the government's collective bargaining power to cut expenditure and improve service delivery, just as global institutions like the World Bank have done successfully.' Speaking earlier, the Permanent Secretary, Special Duties, Federal Ministry of Finance, Mr. Raymond Omenka Omachi commended the Minister's leadership and vision, calling the initiative a model for fiscal responsibility across the public service and beyond. Project BisonFly was developed by the Ministry's Efficiency Unit in collaboration with ICT advisers and key stakeholders and will be overseen by a dedicated implementation team to ensure timely rollout and measurable results. The Minister charged the implementation team to ensure the full realisation of this important policy initiative of government, underscoring the urgency and significance of delivering on its mandate. The BisonFly Project aligns with the Federal Government's commitment to fiscal responsibility and public sector reform, supporting the government's broader goals of enhancing efficiency and accountability in public sector operations. It represents a significant step towards achieving fiscal discipline and improving public sector efficiency in Nigeria. With its innovative approach to cost savings and transparency, the project is poised to make a positive impact on government operations and set a precedent for other initiatives.
Shafaq News
26-03-2025
- Business
- Shafaq News
Kurdistan March salaries: $728M disbursement on track for 26th
Shafaq News/ The Kurdish Ministry of Finance and Economy announced, on Tuesday, the completion of all steps to disburse March salaries. The ministry stated that the Federal Ministry of Finance will transfer 954.88 billion Iraqi dinars (approximately $728 million) to cover the Region's public sector payroll, including retirees. The funds are scheduled to be deposited into the ministry's account at the Central Bank of Iraq's Erbil branch on March 26. The Regional ministry had earlier indicated that coordination with the Federal Budget and Accounting Department had reached the final phase of the salary allocation process.
