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Mixed
reactions trail 2005 budget
� CNPP indicts NASS,
Obasanjo
� FG to introduce tax
relief in 2005
By Sanya Adejokun
(Abuja)
Charles
Okonji
and Esan Sunday
(Lagos)
Former Nigerian National
Petroleum Corporation (NNPC) Group Managing Director Chamberlain Oyibo has
said that the government took a conservative approach by basing the 2005
budget on the sale of oil at $27 per barrel, an eight per cent increase on
the 2004 base of $25 per barrel.
Oyibo, also the Executive
Chairman of Prime Energy Resources (PER), stated that the government
adopted a cautious price level, despite prevailing prices of over $50 per
barrel, and that the price would not fall below $35 per barrel.
The conservative stand, he
explained, would help the government to avoid deficit budgeting, earn
extra revenue, boost external reserves now at $12 billion.
Financial analysts have
carpeted some sections of the budget, describing them as a tall dream
because of current realities.
Stockbrokers doubted the
ability of the government to raise about N70 billion from the capital
market which would play host to many banks that are raising funds to meet
the deadline for their recapitalisation in 2005.
A stockbroker, Simeon Afolabi
said: �The budget was read just yesterday so, I have not really had time
to study it but I know it will be difficult for the government to achieve
a 10 per cent inflation rate and a growth rate of seven per cent.
�It is so easy to project but
working towards its implementation is the main issue. I expected the
President to also speak on interest rates but I am not sure I heard
anything like that�.
The Conference of Nigerian
Political Parties (CNPP) is accusing the National Assembly (NASS) of
shirking its responsibility to ensure the effective implementation of
previous budgets.
It accused both the Presidency
and the NASS of taking Nigerians for a ride over the annual budgets
implemented since the exit of the military in May 1999.
A statement signed by CNPP
Secretary General Maxi Okwu pleaded with both Obasanjo and the legislature
to spare Nigerians the ordeal of the annual budget
ritual.
�Should the NASS wish to
salvage its image and rise to its constitutional duties, it should view
now the implementation of the Appropriation Act for its gross misconduct
that should lead to impeachment as decreed by Section 143(2) of the
Constitution�, he stated.
The government also increased
its cash calls to the joint ventures to $4.23 billion, from $3.2 billion,
which Oyibo said would enable it
finance most of its upstream projects in the oil and gas
industry.
The Business Development
Manager of Shell Petroleum Development Company of Nigeria Limited (SPDC),
Ola Sobande, agreed with Oyibo, saying the $4.23 billion cash call, if
approved by the National Assembly, would enable the industry execute the
projects that would boost crude oil production and enhance adequate gas
utilisation.
However, Abuja is set to
reduce the number of taxes being paid in the country from January 2005, as
part of tax reforms.
It was learnt that from the
beginning of the next fiscal year, most civil servants and other Nigerians
within the salary bracket of civil servants may be exempted from income
tax payment.
The final report of the World
Bank Study Group, which harmonised the reports of both the Working Group
and the Study Group on tax reform, is expected to be submitted to the
Federal Executive Council (FEC) next Wednesday.
A senior minister who asked
not to be named said in Abuja that this is part of the measures by which
the government intends to increase the purchasing power of Nigerians from
next year.
The government has in the last
three years set up different committees to look into the administration of
taxes and even appointed Dotun Philips to harmonise the work of the
committees. The report has since been submitted to the Minister of
Finance.
Also, members of the private
sector have at various fora called for the harmonisation and reduction of
taxes.
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