A major development in the economy this week was the presentation of the 2013 federal budget proposal of N4.9 trillion to the National Assembly .
The News Agency of Nigeria (NAN) reports that the size of the 2013 budget proposal represented a five per cent increase over the N4.7 trillion budget in 2012.
The budget, titled “Budget of Fiscal Consolidation with Inclusive Growth’, was presented? by President Goodluck Jonathan to the National Assembly on Wednesday in Abuja.
According to the breakdown, the Education sector is to receive the highest allocation of N426.53 billion, and is followed by Defence which is allocated N348.91 billion, while the Police is allocated N319.65 billion.
The Federal Ministry of Works is allocated N183.5 billion, Power N74.6 billion, Health N279.23 billion, while Agriculture and Rural Development is allocated N81.41 billion.
Mr Eddie Osarenkhoe, a former President of Finance Houses Association of Nigeria, said that capital and recurrent expenditure estimates in the 2013 budget proposal were better than those of 2012.
Osarenkhoe said that although the 75 dollars per barrel crude oil price benchmark was commendable, government should be careful of sudden changes in international oil price.
He also said that government should create more jobs in 2013 to increase the gross domestic product.
Also during the week, the Central Bank of Nigeria (CBN) announced plans to introduce a strong macro-prudential framework to prevent further financial crisis in the banks in future.
Dr Kingsley Moghalu,? CBN Deputy Governor, Financial Stability, disclosed this in Lagos on Wednesday while presenting a paper on? “Advancing Corporate Governance from Compliance to Competitive Advantage”.
Moghalu said that other proactive steps being taken by CBN to prevent financial crisis in future included establishment of a comprehensive framework and resolution of banking crisis with strong scenario planning.
He promised that the CBN would create a more endurable framework for the financial stability of the banks and ensure stronger micro-prudential regulation and supervision of individual banks.
Moghalu said that CBN would also ensure protection of consumers’ rights, promotion of financial literacy and strong compliance and enforcement regime.
Also, during the week, Mr Niyi Ajao, Chief Executive Officer of Nigerian Inter-Bank Settlement System, announced? that the value of transactions on Point of Sales (PoS) terminals had reached N2.34 billion monthly.
?Ajao, who disclosed this at a forum of the Lagos Chapter of the Nigerian Computer Society in Lagos, said that efforts to resolve connectivity challenges facing PoS terminals had started yielding positive results.