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Ministerial Platform 2012

Ministerial Platform 2012

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#MP2012 Presentation of the MInistry of Finance #MP2012 Presentation of the MInistry of Finance Presentation Transcript

  • PRESENTATION OF THEFEDERAL MINISTRY OFFINANCEFederal Republic of NigeriaMAY, 2012
  • PRESENTATION OUTLINE• INTRODUCTION• THE MINISTRY’S MANDATE AND STRUCTURE• OUR SCORE CARD’s PRESENTATION FORMAT: OUTCOME KEY PERFORMANCE INDICATORS HIGHLIGHTS OF THE FMF CORE ACTIVITIES ANDINITIATIVES OUR ACHIEVEMENTS NEMT AND EMITs’ INITIATIVES – THE JOURNEY SO FAR CONCLUSION2
  • INTRODUCTION• FMF Score Card, in line with the Ministry’s agreed KeyPerformance indicators (KPIs), with respect to theTransformation Agenda• The focus is on major activities and initiatives undertakenbetween October 2011, and March 2012• Capture of the 4th Quarter activities was due to theextension of the 2011 Capital Budget to 31st March, 2012.• Our Score Card encompasses initiatives and activities ofNEMT/EMIT, the Core Departments of FMF and Extra-Ministerial Departments and Agencies under the Ministry’ssupervision• Overall Performance- Above Average3
  • MINISTRY’S MANDATE AND STRUCTURE:MANDATE• Administration and control ofthe finances of the FederalGovernment• Overall management of theeconomy• Mobilization of external andinternal resources fordevelopment purposes• Coordination of revenueallocations to the three tiers ofGovernment: Federal, Statesand Local Governments andother statutory transfersSTRUCTURE:Five Core Departments• Economic Research andPolicy Management (ERPM)• International EconomicRelations (IER)• Home Finance• Human ResourceManagement• Finance and Accounts4
  • FMF’s EXTRA-MINISTERIAL DEPARTMENTS,PARASTATALS AND AGENCIES• Budget Office of the Federation (BOF)• Office of the Accountant General of the Federation (OAGF)• Nigeria Customs Service (NCS)• Federal Inland Revenue Service (FIRS)• Debt Management Office (DMO)• Securities and Exchange Commission (SEC)• Investment and Securities Tribunal (IST)• National Insurance Commission (NAICOM)• Nigeria Deposit Insurance Corporation (NDIC)• Assets Management Company of Nigeria (AMCON)• National Economic Reconstruction Fund (NERFUND)• Nigeria Export and Import Bank (NEXIM)5
  • FMF AGREED OUTCOME KEYPERFORMANCE INDICATORS (KPIs)FISCAL BALANCEEFFICIENTFINANCIALMANAGEMENTBUDGETPERFORMANCEACHIEVING MOREEFFECTIVECOORDINATIONCONTRIBUTIONSTO FINANCIALSYSTEM STABILITY6
  • FISCAL BALANCE: Ensuring ProgressiveDecline in Fiscal Deficit• Ms to Federation account7Fiscal deficit decreases from 2.96% of GDP in 2011 to 2.85% in2012 budget• Deficit within the 3% of GDP and in line with FRA• Recurrent spending trending downwards from 74.4% in 2011, to 71.5% in2012Reducing Domestic borrowing from N852.27bn in 2011 to 744.44bn in2012• Intensifying revenue generation and collection by MDAs• Improving remittance of MDAs’ internally generated surplusesSurpassing Revenue targets: 1st. Quarter Score Card!•FIRS: Fourth Quarter from (Oct – Dec) 2011 stood at N1, 271.0538 trillion which was 39.71%higher than the Federal Government quarterly target revenue. First quarter indicates totalrevenue collection of ----as against budget projection of --------------•NCS : 1st. Quarter 2012 collections totals------------- as against ------- in the correspondingquarter of 2011
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  • EFFICIENT FINANCIALMANAGEMENT: KEYPERFORMANCE INDICATORSBridging the gapbetween aggregateexpenditure outturn andoriginally approvedbudget2012 Budget paradescomprehensiveinformation- Already put in publicdomain and easilyaccessible- FAQs published-Improved transparency inintergovernmental fiscalrelations– Reduction in FAAC disputesfrom 9 to 2-Publication of FAACallocations- Debt risk analysis andmanagement extended to sub-national governmentsPolicy –basedbudget process :Targetedallocations topriority projects;MTSS approvedBUDGET CREDIBILITY;BUDGETCOMPREHENSIVENESSAND TRANSPARENCY;POLICY –BASEDBUDGETING POCESS;PREDICTABILITY ANDCONTROL IN BUDGETEXECUTION;ACCOUNTING , RECODINGAND REPoRTING;EXTERNAL AUDIT ANDSCRUTINY;11
  • EFFICIENT FINANCIAL MANAGEMENT:MINISTERIAL PERFORMANCE REVIEW TEMPLATE12AGREED POLICY ANDPROGRAMME PRIORITIES FOR2012AGREED KEY PERFORMANCE INDICATORS(KPI) FOR 2012 AS RELATED TO THETRANSFORMATION AGENDA1ST QUARTER 2012ACHIEVEMENTS (NOTACITIVITES)REMARKSOAGF I) IPPIS: Enrolment of theremaining MDAs on IPPISPlatformNo. of MDAs enrolled on IPPISNo. of Personnel on IPPISAmount saved on personnel cost75 MDAs94,299N14,230,825.594I) Implementation ofGovernment IntegratedFinancial ManagementInformation System(GIFMIS)No. of MDAs integrated on GIFMISNo. of officers trained on GIFMIS108 MDAs421 Officers28 TrainersI) Budget Implementation Amount cash backed to MDAs on the 1stquarterAmount utilized by MDAsN151,048,207,741.00Cannot be determined asthe releases have justbeen made to the MDAsI) Revenue collation andreconciliation meetings1. Amount of revenue collated2. No. of reconciliation3. No. of revenue collectiondefaulting AgenciesN1,552,124.22 billion2NilJan & Feb2012Jan & Feb2012Jan & Feb2012
  • EFFICIENT FINANCIAL MANAGEMENT CONTD:Accounting Recording and Reporting• Budget implementation monitoring, 2011third quarter published• Quarterly and Annual Reports being regularlypublished by FMF• External Auditors engaged for forensic Auditof key revenue generating MDAs• External Audit of Oil and Gas subsidy• Monthly submission of progress reports byCore Departments and Agencies13
  • EFFICIENT FINANCIAL MANAGEMENT• Ensuring Debt Sustainability;Nigeria’s External Debt Stock: The bulk of the External Debt is concessionary• Nigeria’s external debt stock stood at US$5,633.71million at the end ofSeptember, 2011 compared to US$5,398.04million as at the end of 2ndQuarter, 2011, representing an increase of US$235.67million or 4.36% dueto additional disbursements on the existing loans and exchange ratevariations.• Multilateral debts constituted the major part of the total debt atUS$4,545.18million or 80.68% of the entire external debt. Non-Paris ClubBilateral and Commercial debts – US$588.53million or 10.45% of the totaland ICM debts consisted of US$500.00million or 8.87% of the totalexternal debts.14
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  • HIGHLIGHTS OF 1ST QUARTER REPORT(2012); NEMT/EMITJOB CREATIONYouWiN!The Youth Enterprise with Innovation in Nigeria (YouWiN) program• Launched by the President in October 2011• Assisting young entrepreneurs (under 40 years of age) to start orgrow their businesses,• Providing training, mentorship from major private sector players,and funding.• Project being spearheaded by the Federal Ministries of Finance,Youth Development and Communication Technology, with supportfrom the World Bank, DFID, and private sector organizations, likeJulius Berger, First Bank and Stanbic IBTC.17
  • National Economic Management Team:Refocusing the EconomyYou WinAWARDPRESENTED TO 1200YOUTHS SURE-PSovereign WealthFundCIVILSOCIETYRETREATThe PublicWorksProgrammePOWERSECTORRETREATAVIATIONSECTORRETREATRetreatwith thePrivateSectorPortReformCreditguarantee tobanksRe-directingCredit toKeySectors18
  • “YouWiN!”Where we are! 1200 winners have emerged top class, out of the 6000selected youths 80,000 to 110,000 sustainable jobs for their fellow youths tobe created over the next 3 years. Awards ceremony already hosted by My President in April2012. Winners in final preparation of sites and awaiting funddisbursement of fund19
  • “YouWin” ! Benefits• Great Benefits! A grant of between N1 million and N10 million from the government,based on their proposed business plan, to support their equitycontributions Introduction to banks for access to credits. Further training, mentoring and linkages with more establishedentrepreneurs and businessmen UK’s School for Start-ups to support the mentoring programme, FATE Foundation, WIMBIZ, etc to support SMEDAN to collaborate in the monitoring and mentoring Winners whose businesses are not registered with the CorporateAffairs Commission will be supported to incorporate them legally CAC partnering with Federal Ministry of Finance in this respect Company website to be facilitated by the Federal Ministry ofCommunication Technology20
  • The Public Works ProgrammeCreating jobs for unskilled youths ! Launched by Mr. President on Monday, February 13, 2012 Fourteen (14) States benefitting Seven (7) out of the fourteen (14) states, already have goodprogrammes for the unskilled Progamme, targeted at key areas, such as the North EastZone Targeting youths and vulnerable people, like the disabledpersons Addressing poverty and resultant security challenges PWP, to create about 370,000 jobs each year in the next 3years21
  • The Sovereign Wealth Fund – Where we are!• National Sovereign Wealth Investment Authority (NSIA): the Ministry hascommenced the operational and administrative set up process for the NSIA• Start-up funds of one billion dollars has been set aside for the NSIA in an interestyielding account at the Central Bank of Nigeria• An Executive Nomination Committee (ENC) of six eminent Nigerians (one per geo-political zone), as required by the NSIA Act 2011, already constituted• Messrs KPMG has completed a transparent and merit-based selection processfor the Executive Team of the Board of Directors (i.e. the Chief Executive Officer(CEO), the Chief Investment Officer (CIO) and the Chief Risk Officer (CRO)• On the recommendation of the Minister of Finance, the President would appointthe Board of Directors• President to appoint independent Governing Council members, subject to senateconfirmation• Operational set-up of the NSIA soon to be completed22
  • National Economic Management Team - OtherInitiatives• Organized a “Presidential Retreat with the Private Sector” from 12th -14thOctober, 2011 on National development• Commenced Sector Retreat for key sectors of the economy, including:Power, Aviation, Housing, Transportation, Agriculture, Education andPetroleum• Port Reform : Reduced number of agencies operating in the ports from 15 to 7 Commenced 24 hours ports operation as against previous 9am to5pm regime; Clearing time reduced from 39 days to 7 days – target remains 48hours Ports decongestion progressing – 2,080 out of 5,000 overtimecontainers, already removed23
  • NEMT/EMIT Initiatives contd.Re-directing Credit to Key Sectors• Significant progress had been made in re-directing credit to keysectors like agriculture, power and aviation sectors and SMEs atsingle digit interest rates• Credit guarantee to banks (on a risk sharing basis), to support a N30Billion programme to supply seeds and fertilizers to farmers• The financiers granting loans to the Seed Companies and Agro-dealers at a fixed rate of 15% p.a. but under an interest draw backarrangement to charge at a single digit interest rate of 7% p.a.• Balance of 8% p.a. to be claimed from escrow-account with theCentral Bank of Nigeria (CBN) under the Terms of an Escrowagreement to be executed by the CBN, FMARD and the banks24
  • MOBILIZING FOREIGN RESOURCES FORDEVELOPMENT PURPOSESECOWAS Bank for Investment and Development (EBID):• Nigerian appointed new President of the Bank• Banks Board of Governors approved increase ofthe bank’s authorized capital of UA 603 million toUA 1 Billion• Facilitated the ratification by Nigeria of 40 out of54 number of Protocols and Conventions signedfrom 1978 to 23/3/11• Facilitated the achievement of three out of thefour primary convergence criteria25
  • MOBILIZING FOREIGN RESOURCES FORDEVELOPMENT PURPOSES CONTDAFRICA FINANCIALINSTITUTIONS• Facilitation of Nigeria’spayment US$17.3 millionand US$17.5 milliontowards the WACB Capitaland Cooperation Funds (CF)respectively remaining anoutstanding balance ofUS$10.6million for theWACB capital and US$11.4million for the CF;CORE PROGRAMMES• Participated in the negotiation of ADF – assistedZaria Water Supply Expansion and SanitationProject held in Tunis, Tunisia, from 26-27 January,2012• Payment of US$40,379,277.80 to ADB on GCI-VI inFebruary, 2012. The amount was paid in line withthe Federal Government’s objective regarding theADB goal• Approval of USD30 million NTF facilities to variousAfrican Countries. The above amount wasapproved by the Federal Government as part of itscommitment to the project• Participated in the supervision mission of theNigeria FADAMA Development Project II (Kogi,Kwara, Katsina and Plateau) from 14th – 29thFebruary, 2012• Bauchi State 120MW Combined Cycle IPP PhaseApproval of Finance/Sovereign Guarantee for aConcessional Loan of USD171, 000,003.00 by theFGN from the EXIM Bank of China, was conveyed tothe State26
  • BUDGET PERFORMANCERevenue PerformanceA disaggregation of the component of the retained revenue in2011shows performance as follows:• The launching of the Government Integrated FinancialManagement Information System (GIFMIS) and trainings of MDAOfficers and Staff of Federal Pay Offices on the new GIFMISapplication started in year 2010 and is still ongoing.27BudgetedNBillionActualNBillionPerformance%Total inflow 3,334.50 3,082.05 92.42
  • Mofi Revenue:- In 2011, the FGN Investments’ yielded the total sum of N48,723,208,268.32 in Dividend, Operating Surplus, DirectorsFees, Spectrum Fees, rent, and Privatization Proceeds which hasbeen transferred to the CRFIndependent Revenue:- Two Revenue Monitoring exercises were conducted on MDAsboth within and outside Abuja. A total no. of 217 MDA werecovered outside Abuja and the total sum ofN18,639,627,755.07 was generated The sum of N 17,862,333,814.87 was remitted and receiptedinto CRF leaving a balance of N777,293,940.20 asunreceipted/unremitted to be recovered in year 2012 Similarly, 146 MDAs were covered within Abuja and the totalsum of N79,247,253,577.22 was generated. Out of the above,the sum of N60,978,142,219.91 was remitted with CRF whilethe sum of N18,269,111,357.30 was outstanding28
  • Oil And Gas Revenue:-• Oil and gas Companies were issued with 254 no. of Treasuryreceipts for the period January – December, 2011. The totalsum of $2,768,661,578.52 and N417,486,479,425.63 wererealized as Royalties on Crude Oil, gas Flared Penalties, Rentand Miscellaneous Oil Revenue. Reconciliation Meetings weresuccessfully hosted preparatory for FAAC MeetingsRecovery Of Trapped Government Funds:-• As a fallout of 2005 banking reforms, the Department set up aunit with a mandate to recover government funds trapped in 11liquidated commercial banks which were acquired by 4 viableexisting banks, Mainstream bank, Zenith bank, ECO Bank andUnited Bank for Africa (UBA)• A total sum of N70,820,411,174.36 was public depositors fundtrapped. Reconciliation concluded with NDIC revealed thatN1,730,384,332.62 belongs to the Federal Public depositorswhile the balance belongs to States and Local Governmentdepositors. The sum of N85 million has been reconciled andtransferred into CRF29
  • NIGERIA CUSTOMS SERVICE (NCS):Generating Revenue and Facilitating TradeTotal revenue collected in 2011 wasN741.83 Billion,- out of which, Federation account was (N430.68 billion)and Non-Federation account (N311.14 billion);• Increased anti-smuggling activities which resulted inseizure of 5, 748 goods including textiles, poultry, usedcompressors, furniture, general goods etc amountingto a total value of N8,428,326,774.00K from Januaryand December, 2011.30
  • FIRS: POLICY ISSUES:• Personal Income Tax amendment bill 2011 signed by Mr. President• Transfer Pricing: Draft regulation developed• Construction of FIRS Corporate Headquarters: FEC approvalobtained for consultancy on architectural design• Self Assessment Project – approved by CME/HMF (democratizedtax assessment and assessment is now cost reflective)• Waivers on Taxes and Bonds – approved by the President (takencare of the low return on investment in Bonds ; reducing cost offunds and enhancing business environment)• Regulation on Non-Governmental Organization (NGOS) and• Infrastructure Relief - approved by the President, (boostinginfrastructural investment, particularly, in remote areas of thecountry)31
  • CONTRIBUTIONS TO FINANCIAL STSTEM STABILITY : NIGERIA DEPOSITINSURANCE CORPORATION (NDIC):Collaborating with CBN and Engendering Confidence in the Banking SystemDeposit insurance coverage provided to:- Twenty (20) Deposit Money Banks (DMBs), 882 Micro-Finance Banks (MFBs) and 100 Primary Mortgage Institutions (PMIs).Joint Routine Risk-Based Examination: 16 non-intervened banks examined incollaboration with the CBN Risk Assessment examination of the 24Deposit Money Banks (DMBs), with CBN Routine examination of Micro Finance Bankswith CBN The cumulative recovery for thebanks in liquidation rose fromN21.756 billion in 2010 to aboutN22.158 billion in 2011, representingan increase of about 2.0% N8.33 million recovered to date fromclosed Microfinance Banks (MFBs) ROUTINE EXAMINATION• Completed the examination of 159Microfinance Banks (MFBs)• Completed and issued outexamination reports for 148 MFBs• Orderly and efficient closure of failedinstitutions. With minimal disruptionto the banking system32
  • Insured and Uninsured Depositors Paid For Banks Closed onor before 2006S/N Particulars 2001 (N’billion)1. Insured deposits paid for banks closed before 2006 3.3042. Liquidation dividends for banks closed before 2006 6.1623. Insured deposits paid for banks closed in 2006 4.2944. Liquidation dividends for banks closed in 2006 66.75733
  • ASSET MANAGEMENT CORPORATION OF NIGERIA(AMCON): Shoring Up the Banking SystemKey activities and initiatives in 2011Purchase of third tranche of Eligible Bank Asset (EBAs)• Completion of the purchase of Eligible Bank Asset, (EBA) from theparticipating twenty two banks ; An addition to second tranches bought inDecember 2010 and April 2011,respectively• Total EBA’s valued at N807.9 billion was purchased from the Eligible FinancialInstitutions at a discounted value of N481.9 billion under the latestacquisition• The Corporation issued “Series V” Bond face value of N689.2 billion asconsideration for the EBAs purchased• Also, Bond face value of N77 billion (discounted value N54 billion) was issuedas Financial Accommodation to Union Bank of Nigeria. This is subject toeventual acquisition by the investor UGPL at agreed terms. Total BoardInsurance (fall value) to date stood at N5.464 trillion• Loan On Board Committee: The Committee has been constituted toretrieving of loans’ files from the banks to facilitate their restructuring,administration and recovery 12 banks have been covered thus covering 54.5%34
  • AMCON’s Gross Earning in 2011• Recording of gross earnings of N11.61 billion,N198 million interest incomes on placement,about N1.79 billion interest income ontreasury bills. The restructured loans yieldedN9.33 billion interest income35
  • SECURITIES & EXCHANGE COMMISSION:DEEPENING THE CAPITAL MARKET• The number and value of new issues stood at 63 andN2.076 trillion respectively, inclusive of equityplacement of N854 billion to AMCON by two banks.Indicating an increase of 6.78% and 45.38% in numberand value of issues respectively compared to 2010figures• AMCON registered bonds worth N4.357 trillion in 5series to purchase the non-performing loans of banksunder its N4.50 trillion programme• 19 New Rules and 9 amendments to existing Rules andRegulation made in 2011• 17 capital Market Operators registered for variouscapital market functions• New Corporate Governance Code lunched in April, 201136
  • INVESTMENT AND SECURITY TRIBUNAL (IST):Sustaining Investors ConfidenceThrough effective and expeditious adjudicatory processes the ISTprovides economic justice and remedies to Investors• Creation of Zonal Office and expanding operations : TheTribunal opened and commenced operations in its PortHarcourt Zonal Office, located within Port – Harcourt JudicialDivision of the Rivers State High Courts, thereby bringing justicecloser to the real people• Production of E-publications: The Tribunal has produced theelectronic mobile versions of some of its publications forinstallation on mobile phones, Androids, Symbian and othercompatible electronic devices. The e-publications are;I. E-Guide and reader systemII. E-bulletin andIII. E-laws Report Converter and reader37
  • National Insurance Commission (NAICOM):DEEPENING THE INSURANCE MARKET’S CONTRIBUTION TO THE GDP/GNP Insurance sector, currently contributes less than 1% to the GDP Implementing the Market Development and Restructuring Initiative (MDRI) Commencement of the enforcement of compulsory Insurance products Intensifying awareness creation Enforcement of Compulsory Insurances provided relief to third parties againstbodily injury or loss of property Strengthening Complaints Redress Mechanism: About 400 Complaintsreceived in 2010 and over N1 billion paid to insurance’ claimants Improved Transparency and Disclosure in the financials of insuranceinstitutions with the newly introduced accounting regulatory requirements oninsurance, industry receivables Motor Insurance Database: A Centralized Database Management Project ofthe Motor Insurance System is currently being developed, to eliminate themalaise of motor insurances38
  • NATIONAL ECONOMIC RECONSTRUCTION FUND(NERFUND): Creating Jobs, Empowering NigeriansKEY ACTIVITIES/INITIATIVES• National Economic Reconstruction Fund (NERFUND) entered intopartnership with 11 Agencies in 2011. This was against eight (8)achieved in 2010MSME-PROJECTS Approved a total of 939 micro projects, valued at N4.5billion in 2011EMPLOYMENT CREATION IN 2011 3,061 direct and 11,312 indirect employments to be createdCURRENT STATUS A total of N1.18billion was already released to 498 projects out of theapproved N4.5 billion 1,541 direct and 6,614 indirect employments to be created via thedisbursed fundsLOAN REPAYMENT HIGH RESPONSE RATE Received the sum of N77.64million from 204 Micro projects and thesum of N207.77million from 9 SME projects in 201139
  • NERFUND: DISBURSEMENTS IN 2012Released the sum of N122.56million for 78micro projects and the sum of N373.27millionfor 9 SME projects (Projects locatedcountrywide).• Extra Budgetary Resources:• The Fund did not receive any extrabudgetary resources in 2011• Fund granted N2 billion loan in 2010 asSME support by Government40
  • NIGERIAN EXPORT-IMPORT BANKCreation of Quality Risk Assets:• Approved Facilities by the Bank amounted toN2.09 billion; loan disbursements stood atN708.63 millionAggressive Debt Recovery of the Bank’sClassified/Non-Performing Facilities:• The Bank recovered the sum of N56.49 millionfrom its loan loss portfolio/non-performingdebts 41
  • Intervention to the Entertainment Industry:• Capacity building arrangement made with EXIM bank of India toreplicate the successes of “Bollywood” in the Nigerian EntertainmentIndustry• A stakeholder forum organized by EXIM Bank of India for the NigerianEntertainment Industry. This was to enable its team to study and makeappropriate recommendations on ensuring the success of the NigerianCreative and Entertainment Industry Stimulation Loan Scheme (NCEILS)US$200 Million ADB Sovereign Guaranteed Loan:• The Bank facilitating the transaction closure and draw down of theUS$200 million Facility; the loan shall be available principally for allSME’s in all sectors of the economy, with high development impact andsignificant contribution to value creation, such as manufacturing, agro-processing, solid minerals and services.• Special Purpose vehicle (SPV): A private transnational corporation to bemanaged as a private company and with a private sector led Board ofDirectors, was currently being set up42
  • THANK YOU43