Saturday 14th May 2016

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Udoma: Why FG Opted for Offshore Borrowing to Finance 2016 Budget Deficit Ndubuisi Francis in Abuja The federal government has given a hint on why it is opting for offshore borrowing to finance a major part of the N2.2 trillion deficit in the 2016 budget, saying its preference was dictated by a desire not to crowd out the nation’s private

sector. The deficit in the N6.06 trillion budget characterised by an expansive fiscal spending directed at reflating the economy, is about 2.41 per cent of the Gross Domestic Product (GDP) and is within the 3 per cent threshold prescribed by the Fiscal Responsibility Act, 2007.

Speaking during the highlights of the budget in Abuja Thursday, the minister stated that the borrowing was to be raised roughly equally from domestic and foreign sources The deficit is to be financed mainly by borrowings projected at N1.84 trillion, with the local component standing at N984

billion and N900 billion from international sources, “We have decided to source from international sources so as not to rely exclusively on domestic borrowing, which may have the effect of crowding out the private sector Furthermore, we are optimistic that we may be able to access some of the

foreign loans on a concessionary basis. The Ministry of Finance is currently negotiating with multiple sources to secure the external financing,” Udoma said. The minister noted that the 2016 budget was the first full-year budget of the current administration, adding that it

was prepared against a background of general slowdown in global economic growth, and more significantly, a massive decline in crude oil prices. “It will be recalled that crude oil exports had hitherto accounted for over 70 per cent Continued on page 6

Our National Convention Will Hold as Scheduled, Says PDP...Page 6 Saturday 14 May, 2016 Vol 21. No 7682 Price: N250

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Boko Haram: FG Looks to China for More Weapons Senator Iroegbu in Abuja The Minister of Foreign Affairs, Geoffery Onyeama yesterday disclosed that the federal government was discussing with China and other friendly countries for the supply of

required arms and equipment needed to finish the ongoing war against Boko Haram. Onyema disclosed this yesterday during a media chat in Abuja at the ongoing 2nd Regional Security Summit with the Theme: “Consolidating

Collective efforts for Regional Peace and Development.” He stated this in response to the request by the MultiNational Joint Task Force (MNJTF) for a number of platforms, weapons, and logistics required for sustaining

the ongoing operations in the North-east and Lake Chad Basin area that has contiguous borders with Niger, Chad and Cameroun. “The MNJTF has made tremendous progress in the last one year. Like Mr. President

alluded there was a time about 14 local government areas were under the Boko Haram control but today, they are no longer in control. We are also working together with the frontline states in the areas of intelligence sharing. So, in the

military dimension we are going to look at the mechanism of cooperation and coordination. “On the need for more weapons and other, we are engaging with various partners Continued on page 6

Fuel Hike: NLC, TUC Make U-Turn, Resolve to Shut Down Nigeria PENGASSAN , NUPENG back FG, demand N90,000 minimum wage Osinbajo: we can no longer provide forex for fuel importation Oyegun begs Nigerians for understanding Naira closes at N350

Tobi Soniyi, Onyebuchi Ezigbo and Paul Obi in Abuja; Ejiofor Alike, Obinna Chima in Lagos and Bassey Inyang in Calabar

COLLINS ENEBELI (DON JAZZY’S DAD)

After being consulted prior to the deregulation of the downstream sector of the oil industry, the Nigeria Labour Congress (NLC) yesterday resolved to join forces with the Trade Union Congress (TUC) to mobilise Nigerian workers to shut down the whole country starting from next week Wednesday should the federal government fail to reverse the recent hike in the price of petrol from N86.50 to N145 per litre. However, in a sign of a major crack in the labour family, The National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) yesterday applauded government's decision to deregulate and scrap fuel subsidy, describing the decision as courageous and long overdue. They made their positions

SuperSaturday pg. 8-9

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I Want Nigerian Artistes to Stop ‘Beefing’ One Another

LOLU AKINWUNMI I Married at 30 but Waited for Eight Years to Have a Child

Plus pg. 17

FACTS BEHIND THE FIGURES

L-R: Legal Director, West Africa/Company Secretary, Unilever Nigeria Plc, Mrs. Abidemi Ademola; Chairman, Board of Directors, His Majesty, Obi of Onitsha, Alfred Nnaemeka Achebe and the Managing Director, Mr. Yaw Nsarkoh, during the company's 91st Annual General Meeting (AGM), at Muson Center Onikan, Lagos ...recently KOLA OLASUPO


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