TheNewsGuru

Tag: 2021 Budget

  • NCC denies incurring N17bn deficit in 2021 budget

    NCC denies incurring N17bn deficit in 2021 budget

    The Nigerian Communications Commission (NCC) has denied it incurred a deficit of N17 billion, spending N35.2 billion on personnel and consultancy fees.

    TheNewsGuru.com (TNG) reports this is contained in a statement released on Tuesday by Reuben Muoka, NCC’s Director of Public Affairs.

    According to the statement, a report of the Commission incurring a N17 billion deficit because of expenditures on personnel and consultancy fees is far from the truth.

    “Though the Statement of the Financial Performance of the Commission for the period ended December 2021, clearly indicates that the sum of N17.3bn was a “Surplus/(Deficit) retained for the period)”, this does not imply that the Commission incurred a cash deficit as the expenditure in its financials were both in cash and accruals applicable to the year.

    “If the publication had inquired of the constituents of our expenditure, it would have learnt that the expenditures for the year 2021 included accruals for items undergoing procurement at the end of the year, like the State Accelerated Broadband Initiative, SABI, being implemented by the Commission, which was standing in the sum of about N24bn in the financial report.

    “The Commission also remitted an Operating Surplus/Spectrum Fees of estimated N197.7bn to the Federal Government, under the same Financial Performance Reporting period, and had a bank balance of about N46.97bn, erasing any doubt that there was any deficit spending.

    “The Commission, therefore, disclaims the wrong impression created by the above headline, and subsequent misinterpretation of our financial report in the publication may have had in the minds of the public, and stakeholders,” the statement reads.

    Meanwhile, NCC reiterated its commitment to effective and transparent processes in all its regulatory, management and financial activities.

  • Senate extends 2021 budget implementation to May 31

    Senate extends 2021 budget implementation to May 31

    The implementation of the 2021 budget, has been extended by the Senate, from March 31 to May 31, following the consideration of a Bill to Amend the 2021 Appropriation Act.

    The Senate before considering the bill suspended Rule 78(1) of the Senate Standing Orders 2022 (as amended), to enable the upper chamber to expeditiously introduce and pass the bill.

    The bill was read during plenary on Tuesday for the first, second and third time after the suspension of Rule 78(1).

    The bill was sponsored by Senate Leader, Yahaya Abdullahi.

    Leading debate on the bill, Abdullahi said that Appropriation Act in the past was passed mid-year, with its implementation usually extended to the following year.

    “In previous Appropriation Act, these extensions were usually covered by a clause.
    “The clause is in line with the provisions of Section 318 of the Constitution of the Federal Republic of Nigeria that the Act runs for a period of 12 months, starting from the date it comes into effect,” he said.

    He, however, observed on the contrary that Clause 12 of the provisions of Section 318 of the Constitution provided that the 12- month period started from the first day of Jan. to Dec. 31. 2021.

    He said that the 2022 Appropriation Act was amended to extend the implementation from Dec. 31, 2021, to March 31, 2022.

    Abdullahi said that the extension of the budget period became imperative in view of the need to complete ongoing projects nearing completion.
    “As you are aware, the 2021 virement of the aggregate sum of N276 billion was approved for several MDAs by the National Assembly in December 2021 along with 100 per cent release of the 2021 Capital Budget of the MDAs.

    “A significant portion of the releases to the MDAs has been utilised following the extension to March 31.

    “In view of the critical importance of some key projects nearing completion, it is expedient to grant further extension of the expiration clause.

    “This is to avoid compounding the problem of abandoned projects given that some of the projects were not provided for in the 2022 budget hence the need to extend the implementation year from March 31 to May 31,” he said.

    Meanwhile, a total of three bills scaled second reading on the floor.
    The bills included the National Industrial Technology Park; the Federal College of Agriculture Ise-Orin, Ekiti State; and the Federal University of Agriculture Ogoja, Cross River bill.
    The bills were sponsored by Sen. Ibikunle Amosun (APC-Ogun), Sen. Biodun Olujimi (PDP-Ekiti) and Sen. Agom Jarigbe (PDP-Cross River).

  • ICPC uncovers 257 duplicated projects worth N20bn in 2021 budget

    ICPC uncovers 257 duplicated projects worth N20bn in 2021 budget

    The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has uncovered two hundred and fifty-seven thousand duplicated projects listed in the 2021 Federal Budget.

    The total value of the projects was put at N20.138 billion by the ICPC Chairman, Prof. Bolaji Owasanoye.

    Owasanoye also said at the 3rd National Summit on Diminishing Corruption in Public Sector, in Abuja, that the Ministry of Labour and Employment and the University College Hospital (UCH), Ibadan, are among government establishments being investigated for illegal recruitment.

    The ministry however said the ICPC was merely “rehashing an old development” which it ought to have completed its investigation.

    Owasanoye added that the ICPC tracked 1083 projects across the country, excluding Borno and Zamfara. He explained that the anti-graft agency ensured the completion of 966 of the projects worth N310b.

    The ICPC boss said: “ICPC review found that 257 projects amounting to N20.138b were duplicated in the 2021 budget leading us to submit an advisory to the Ministry of Finance, Budget and National Planning which promptly acted on it to prevent abuse.

    “We have so far initiated enforcement actions against 67 contractors and forced them back to site and ensured completion of 966 projects worth N310b some of which were hitherto abandoned.”

    The ICPC helmsman added that there was no doubt that illegal recruitments, unilateral and illegal increase of salaries and wages, procurement malpractices, and budget padding by some government establishments had pushed up the cost of governance in the country.

    He also said the commission uncovered a syndicate within the public service that issues fake letters of employment to unsuspecting Nigerians, fraudulently enrolls them on IPPIS, and posts them to MDAs.

    He disclosed that the agency had commenced the prosecution of one of the leaders of the syndicate was arrested in possession of fake letters of recommendation purportedly signed by Chief of Staff to the President, ministers, Federal Civil Service Commission, and other high-ranking Nigerians.

    His words: “ICPC investigation of some cases of illegal recruitment forwarded to us by Head of the Civil Service of the Federation has so far implicated Ministry of Labour and the University College Hospital, Ibadan and a number of corrupt staff of other MDAs at a lower level.

    “This abuse of power is consummated with the complicity of compromised elements in IPPIS. These cases are currently under investigation.

    ”Our findings indicate that the same malady of corruption afflicts executive as well as zip projects thus undermining government projections, escalating the cost of governance, and denying Nigeria value for money.

    “These maladies include poor needs assessment that disconnects projects from beneficiaries; false certification of uncompleted contracts as completed, deliberate underperformance of contracts incessant criminal diversion and conversion of public property by civil servants, to name just a few.”

    The ICPC boss described as mini-wars, the ties between boards and managements of some establishments.

    “A number of MDAs have mini-civil wars going on between the boards and managements and sometimes within the board. These squabbles revolve around abuse of power prohibited by ICPC Act and unreasonable demands by some board members for privileges.”

    Owasanoye commended the government’s posture against illicit financial flows.

    Giving facts and figures of the commission’s Ethics Compliance scorecard of MDAs, Owasanoye said only 34. percent of the 360 establishments scaled above the average mark.

    Ministry of Labour and Employment however clarified the allegation of illegal recruitment against it by the ICPC.

    Deputy Director, Press and Public Relations of the ministry, Charles Akpan, said the minister, Dr. Chris Ngige, reported the matter when he was re-appointed in August 2019.

    Akpan, in a statement, said: “There was illegal recruitment perpetrated between May 29, 2019, and August 2019 when the President dissolved his first-term cabinet and Senator Ngige temporarily out of office.

    “However, upon re-appointment and resumption of duties as the Hon. Minister of Labour and Employment in August 2019, Sen. Ngige discovered the illegality and promptly raised it at the Federal Executive Council, necessitating a preliminary investigation by the office of the Head of Service of the Federation.

    “The minister subsequently empaneled an Internal investigative committee in the ministry to unearth how 752 senior and 532 junior staff members were recruited without ministerial and Head of Civil Service of the Federation approval.

    “Unfortunately, the activities of the committee were stalled by the then Permanent Secretary who claimed that the ICPC has stepped into the matter.

    “The onus, therefore, lies squarely on the ICPC to break the syndicate which the minister appropriately reported first at the Federal Executive Council and subsequently taken over by the ICPC since two and half years ago.

    “This is the right step instead of rehashing an old development and singling out for bad publicity, a ministry whose minister decided to blow the whistle on fraud as the Deputy Chairman of the Presidential Committee on Salaries saddled with the responsibility of bringing down undue personnel cost, especially via illegal recruitment.”

  • Zamfara Assembly cuts state’s 2021 budget by N25bn, gives reasons

    Zamfara Assembly cuts state’s 2021 budget by N25bn, gives reasons

    Members of the Zamfara State House of Assembly have reviewed the state’s budget downward by N25,203,851,000.

    The initial budget of N142,779,251,000, signed by the governor for the 2021 fiscal year, was cut down to N117,575,400,000 as a result of the activities of bandits, the COVID-19 pandemic, and the poor Internally Generated Revenue (IGR) of the state.

    Members of the Assembly reduced the figure on Thursday after considering the report from the House Committee on Finance and Appropriation which was saddled with the responsibility of revising the budget estimate.

    Presenting the report to the House, the acting chairman of the committee, Shamsudeen Hassan, explained that the protracted insecurity situation in the state culminated in the poor generation of revenue.

    This, in addition to the effect of the COVID-19 pandemic, according to him, adversely affected the state, had a negative effect on the performance of capital expenditure which stood at 32.8 per cent, as well as a recurrent expenditure with a dismal performance of only 27.6 per cent.

    In his remark, the lawmaker representing Maru North, Yusuf Kanoma, slammed the revenue-generating agencies of the government.

    He stated that the School of Nursing and Midwifery was an example where more than 1,500 students admitted paid a minimum of N5,000 as registration fee.

    Kanoma claimed that the institution ended up with no funds to remit to the state government.

    On his part, the Speaker of the Assembly, Nasiru Magarya, commended the committee for a job well done.

    He, however, faulted the Committee on Public Accounts for not carrying out a routine oversight to all revenue agencies in the state and urged them to start doing so without further delay.

    Meanwhile, the House has unanimously passed the controversial bill seeking to promote children and young person’s education in the state.

    The bill, which also seeks to prevent all forms of distractions during school hours, was sponsored by Kanoma.

  • BREAKING: Assembly passes Delta State 2021 supplementary budget

    BREAKING: Assembly passes Delta State 2021 supplementary budget

    The Delta State 2021 Supplementary Appropriation amendment bill, being a supplementary budget for the State has been read the third time and passed on the floor of the State House of Assembly.

    The motion for the third reading of the bill and subsequent passage was moved by the Majority Leader of the House, Hon Ferguson Onwo and adopted during Tuesday’s plenary of the House presided over by the Speaker, Rt Hon Sheriff Oborevwori.

    The supplementary Appropriation amendment bill was last Wednesday referred to the House Committee on Finance and Appreciation for further scrutiny and to report back Tuesday, October 12th, 2021.

    Presenting the Committee’s report, its Chairman, Hon Erhiateke Ibori-Suenu said the amendments being sort were in order as priority areas were being addressed as the administration strive to finish strong.

    She disclosed that in carrying out the assignment, the Committee critically analyzed the content, quality and values of the realigned heads and votes to be sure that the reason given for the proposed amendments on both capital and recurrent estimates in the 2021 approved budget were workable.

    Hon Ibori-Suenu explained further that the reordering of some specific subheads was as a result of the need by the state government to redirect unspent funds in some budget heads to very strategic and critical projects and programs.

    The Lawmaker stated that the amendment amongst others accommodates the realignment of funds to facilitate payment for the ongoing projects at the new Technical Colleges and various on going infrastructural projects undertaken by the state government.

    She stated that it was gratifying that the proposed amendments do not affect the budget size of the 2021 budget of the state government as the amount remains Three Hundred and Eighty Three billion, Nine Hundred and Fifty Five Million naira.

    Hon Ibori-Suenu noted that the Committee therefore recommend that the House graciously approve the amendments and ensure speedy passage of the supplementary Appropriation Bill.

    The Majority Leader, Hon Ferguson Onwo in separate motions moved for the suspension of the relevant rules of the House to enable it take the third reading of the bill and passed.

    Reacting to the development the Speaker, Rt Hon Sheriff Oborevwori thanked members for the demonstration of commitment towards the early passage of the supplementary budget.

    The Speaker explained that one of the key functions of the legislative House is the authorization of government expenditures and commended Governor Ifeanyi Okowa for his wisdom and prudence in the management of the state’s scarce resources.

    Rt Hon Oborevwori described the period as an extra ordinary times, saying that the outbreak of the new variant of Covid 19 had continued to affect the economy of the countries all over the world.

    He assured that the House will continue to support the executive to see the state through the trying times.

    The breakdown of the supplementary budget include, fifteen billion point seven billion naira for recurrent expenditure and fifty point seven billion naira for capital expenditure, bringing the amount to sixty six billion naira.

  • No funds for Constitution Review in 2021 budget – Omo-Agege

    No funds for Constitution Review in 2021 budget – Omo-Agege

    Deputy President of the Senate, Ovie Omo-Agege has said there was no funds allocated for Constitution Review in the 2021 Budget.

    Omo-Agege who doubles as Chairman, Senate Ad-hoc Committee on the Review of the 1999 Constitution disclosed at a briefing in Abuja, on Monday.

    Omo-Agege the situation notwithstanding, the committee has sufficient funds to carry out the exercise, saying it was still operating its 2020 budget.

    He expressed optimism that funds would be voted for the exercise in the supplementary budget expected to be transmitted to the National Assembly in no distant time.

    The Committee has scheduled zonal public hearing in 12 states across the six geopolitical zones to commence on Wednesday this week.

    He insisted that the Bills to be collated from the public hearings will be voted on and passed by the Senate in July 2021 before the lawmakers embark on their annual vacation.

    On whether paucity of funds has been responsible for the slow pace of work by the Committee and how the situation may likely affect the target of the panel to deliver on its mandate before the July recess for members of the National Assembly, Omo-Agege said the committee does not lack funds.

    “In 2021 budget, we have not received an appropriation yet due to some oversight so we are still working on the 2020 budget and we are hoping that during the supplementary exercise we will be accommodated

    “I can tell you categorically that we have no challenge with paucity of funds. I was actually answering a question as to how much was appropriated (for the review exercise) in 2021. The answer again is that there was no appropriation for 2021.

    “We are still awaiting the supplementary budget. So we are operating the 2020 budget but we have enough for our work.

    “We have not been hampered in any way and we believe we have enough resources to carry out this exercise.

    “Whether or not we are taking a vote this July, as I believe, we will. It is not a function of how much money we have,” Omo-Agege said.

    He added: “You must understand, this is not the only committee in Senate but it is the largest committee.

    “I think the membership spans about 68 members. Taking that into account we have to accommodate the other committees and their assignments as well so as not to pull everybody away.”

    On whether comments recently credited to Senate President Ahmad Lawan on calls for restructuring will not influence the views of the Committee in the aspect of restructuring, Omo-Agege said: “Constitution review is a major plank of the 9th Senate’s Legislative Agenda and I can assure you that Senator Ahmad Lawan is not against anything, he is not against restructuring.

    “Restructuring is just one aspect of several aspects of this Constitution review and it also depends on what you mean by restructuring and who is speaking to that.

    “I can assure you that the Senate President has not taken any position, he is entitled to his views like any of us.

    “He is in support of what I am doing and you can take this to the bank that we will have an exercise that the Nigerian people will be glad.”

    On whether the current review exercise will not end up like past ‘jamborees’, Omo-Agege expressed optimism that President Buhari will assent to the Bills when they are transmitted.

    “The exercise is not a jamboree, it will be incremental. By the time we succeed in this exercise, God willing, it will be the 5th alteration.

    “We borrowed our system from the United states, even the US continues to amend their constitution and I think the last time I checked it was about 27 amendments.

    “What that tells you is that from the outset the framers of our constitution knew they were not giving a perfect document.

    “Nobody ever has a perfect document, that is why they still do incremental amendment and that at some points, they will be near perfection.

    “Section 9 of our Constitution also anticipated that a time will come where there will be several agitations questioning some issues in the constitution and how we should address that.

    “We believe that we have assembled the best brains to do this job and have provided the only mode for the alterations of the Constitution. All they provided for is incremental alterations.”

  • SERAP asks Buhari to probe 316 ‘duplicated’ projects in 2021 Budget

    SERAP asks Buhari to probe 316 ‘duplicated’ projects in 2021 Budget

    The Socio-Economic Rights and Accountability Project (SERAP) has asked President Muhammadu Buhari to probe what it describes as 316 duplicated projects in the 2021 budget.

    SERAP made the request known via a statement issued on Sunday by its Deputy Director, Kolawole Oluwadare, adding that President Buhari should direct the Minister of Justice, Abubakar Malami to carry out the investigation.

    The group wants the Minister to also “investigate ministries, departments and agencies (MDAs), and members of the National Assembly suspected to be responsible for inserting N39.5bn for apparently 316 duplicated and mysterious projects in the 2021 budget.”

    “Any such investigation should establish whether public funds have been mismanaged, diverted or stolen in the guise of implementing the duplicated and mysterious projects,” the statement partly read.

    “Anyone suspected to be responsible should face prosecution as appropriate, if there is sufficient admissible evidence, and any stolen public funds should be fully recovered.”

    READ ALSO: No Amount Of Intimidation Can Force Rivers To Concede To Secessionist Agenda – Wike

    According to SERAP, the misallocation of public funds for duplicated and mysterious projects has seriously undermined the ability of the indicted MDAs, noting that the government should ensure respect for Nigerians’ human rights through developing and implementing well-thought-out policies, plans, and budgets.”

    It also expressed concern that the N39.5bn duplicated and mysterious projects may have been used as a ploy to divert and steal vital resources from MDAs.

    The statement added, “Budget allocations and expenditure ought to be well-suited to ensure access of Nigerians to basic public services, and responsive to the people’s needs in order to prevent corruption or unnecessary or wasteful spending.”

    The letter, read in part: “BudgIT had in a report last week stated that there are 316 duplicated capital projects worth N39.5 billion in the 2021 budget. The duplicated and mysterious projects are contained in the 2021 appropriation bill of N13.588 trillion signed into law in December 2020.”

    “These damning revelations suggest a grave violation of the public trust, and Nigerians’ rights to education, health, water, sanitation, and clean and satisfactory environment because the indicted MDAs have misallocated public funds at the expense of the people’s access to basic public services, and enjoyment of rights.”

    “SERAP urges you to ask the heads of the MDAs involved to explain why they allegedly failed to ensure strict compliance with constitutional and international standards of transparency and accountability in the preparation, processes and decisions on their budgets, and to return any misallocated public funds to the public treasury.”

    “Investigating and prosecuting any allegations of mismanagement, diversion and stealing of public funds budgeted for the 316 duplicated and mysterious projects would allow your government to use the budget to effectively promote Nigerians’ access to essential public goods and services.”

    “It would also enable your government to meet Nigeria’s human rights obligations in the way the MDAs under your leadership and supervision allocate, spend and audit the budget.”

    “Publishing the ‘implementation status’ of the duplicated and mysterious projects would allow Nigerians to hold their government to account in the spending of public funds. This is particularly true for marginalized and excluded groups, such as people living in poverty, women, children, and persons with disabilities, as the budget has a disproportionate impact on their welfare.”

    “We would be grateful if the recommended measures are taken within 14 days of the receipt and/or publication of this letter. If we have not heard from you by then, the Incorporated Trustees of SERAP shall take all appropriate legal actions to compel your government to comply with our request in the public interest.”

    “The revelations also suggest that the indicted MDAs lack transparent, accountable, effective and credible budgeting processes to prevent and combat corruption. SERAP is concerned that the Federal Government has not complied with Nigeria’s obligations under international human rights law.”

    “SERAP notes that the budget is government’s most important economic policy document. A carefully and transparently developed, implemented and evaluated budget is central to ensuring access of Nigerians to essential public goods and services, and to the effective realization of all human rights.”

    “SERAP also urges you to direct Mrs Zainab Ahmed, Minister of Finance Budget and National Planning to publish full details of current ‘implementation status’ of the duplicated and mysterious projects, and any spending on the projects to dated, including the 115 projects inserted in the budget of the Ministry of Health; the 23 projects inserted in the budget of the Ministry of Education, and 10 projects inserted in the budget of the Ministry of Water Resources.

    “The following ministries are reportedly involved in the duplicated and mysterious projects: Ministry of Health with 115 projects; Ministry of Information and Culture with 40 projects; Ministry of Agriculture and Rural Development with 25 projects; Ministry of Education with 23 projects; Ministry of Transportation with 17 projects; and Ministry of Science and Technology with 17 projects.”

    “Others are the Ministry of Environment with 13 projects; Ministry of Power with 11 projects; Ministry of Labour and Employment with 11 projects, and Ministry of Water Resources with 10 projects.”

    “According to our information, the security sector received N10.02tn between 2015 and 2021 but without details about how the money has been spent. A total of 117 federal agencies received allocations in the 2021 budget for “security votes” worth N24.3 billion.”

    The letter was copied to Mr Malami; Professor Bolaji Owasanoye, Chairman Independent Corrupt Practices and Other Related Offences Commission (ICPC); Mr Abdulrasheed Bawa, Chairman, Economic and Financial Crimes Commission (EFCC); and Mrs Ahmed.

    Kolawole Oluwadare

    SERAP Deputy Director

    9/5/2021

  • SERAP asks NASS to stop Buhari from selling govt properties to fund 2021 Budget

    SERAP asks NASS to stop Buhari from selling govt properties to fund 2021 Budget

    The Socio-Economic Rights and Accountability Project (SERAP) has asked the National Assembly to stop President Muhammadu Buhari from selling government properties to fund the 2021 budget.

    SERAP in a statement issued on Sunday by its deputy director, Kolawole Oluwadare, appealed to the Senate President, Ahmad Lawan, and the Speaker of House of Representatives, Femi Gbajabiamila to bar the President from carrying out such moves via a letter addressed on January 16.

    The group wants the leadership of the National Assembly to “urgently review the 2021 appropriation legislation to stop the government of President Muhammadu Buhari from selling public properties to fund the 2021 budget, and to identify areas in the budget to cut such as salaries and allowances for members and the Presidency to make sayings to address the growing level of deficit and borrowing.”

    “The National Assembly has a constitutional and oversight responsibility to protect valuable public properties and to ensure responsible budget spending. Allowing the government to sell public properties, and to enjoy almost absolute discretion to borrow to fund the 2021 budget would amount to a fundamental breach of constitutional and fiduciary duties.”

    While warning that selling valuable public properties to fund the 2021 budget would be counter-productive, the group said “this would be vulnerable to corruption and mismanagement. It would undermine the social contract with Nigerians, leave the government worse off, and hurt the country in the long run. It is neither necessary nor in the public interest.”

    The organisation also called for a change in the country’s fiscal situation through some combination of cuts in spending on salaries and allowances, and a freeze on spending in certain areas of the budget such as hardship and furniture allowances, entertainment allowances, international travels, and buying of motor vehicles and utilities for members and the Presidency.

    On borrowing of loans, SERAP also asked the parliament “to stop approving loan requests by the Federal Government if it continues to fail to demonstrate transparency and accountability in the spending of the loans so far obtained.”

    “We would consider the option of pursuing legal action to stop the Federal Government from selling public properties, and we may join the National Assembly in any such suit.

    “The budget deficit and debt problems threaten Nigerians’ access to essential public goods and services and will hurt future generations. If not urgently addressed, the deficit and debt problems would seriously undermine access to public goods and services for the country’s poorest and most vulnerable people who continue to endure the grimmest of conditions.

    “Our requests are brought in the public interest, and in keeping with the requirements of the Nigerian Constitution 1999 [as amended], the country’s international human rights obligations including under the International Covenant on Civil and Political Rights and the African Charter on Human and Peoples’ Rights. Nigeria has ratified both human rights treaties,” the statement added.

  • Ekiti sets aside N1.4bn for Amotekun in 2021 budget

    Ekiti sets aside N1.4bn for Amotekun in 2021 budget

    The Ekiti Government on Sunday said it was not taking anything to chance in 2021 addressing the growing insecurity in the state, particularly kidnapping.

    It therefore voted N1.4 billion for the State Security Network, codenamed Amotekun Corps, in its 2021 budget.

    The Commissioner for Budget, Mr Femi Ajayi made this known at a press conference in Ado Ekiti where he gave the detailed analysis of the N109.666 budget passed by the state legislative and recently assented to by Gov. Kayode Fayemi.

    Recall Fayemi had on Dec. 23, 2020, assented to the budgetary provision, christened “Budget of Recovery and Economic Restoration”, comprising N58. 4 billion for recurrent and N51.6 billion for capital expenditures .

    Ajayi said that the priority to security was in a bid to further attract investment and ensure safety of all investors and residents.

    “Following the incessant security challenges which include kidnapping, herders/farmers clashes, robberies in the country, to ensure the security of lives and properties, Governor Kayode Fayemi inaugurated the Ekiti State Security Trust Fund coined ‘Amotekun’ in collaboration with other South-Western States on 19th October, 2020.

    “A sum of N1.44 billion has been earmarked as capital allocation for Amotekun Corps. For procurement of Drones for surveillance, a sum of N550 million has been earmarked while a total of N320 million will be spent on safety city project and the Ekiti State Security Trust Fund will gulp a sum of N55 million,” the commissioner said.

    He said that government had also earmarked a total of N8 billion to critical areas of social services, to include the education sector, health, gender empowerment, social security and other pivotal sub-sectors critical to the growth of the state’s economy.

    To fund the budget, Ajayi said that a total of N29.6 billion was expected from the federation account, N8.4 billion raised from Internally Generated revenue including taxes and other fees while N4.5 billion would be generated from tertiary institutions, including other sundry sources.

    The Commissioner stated that the budget was tailored towards resetting the economy to rise to COVID-19 challenges and open a new vista in the fight against poverty, engendering of industrial growth and agribusiness.

    He said a sum of N2.4 billion had been budgeted to start off the recently approved Bamidele Olumilua University of Education Science and Technology while a total of N677million was earmarked for the new school of Commercial Agriculture, Isan Ekiti.

    Ajayi said that in consideration for human capital development and equality of all genders, the state proposed to hold a Gender Summit and a N35 million had been budgeted for the project.

    The commissioner also said that N20 million would be spent on construction of a Family Court to attend to family issues,” timeously”.

    On urban renewal development , Ajayi said a sum of N250 million was to be expended on the Master Plan of Ado Ekiti and Satellite Towns while a sum of N4.5 million would be spent on ecological programme called NEWMAP.

    On sports, he said about N116 million was voted for youth and sports development, out of which N30 million has been set aside for the upgrade of the Oluyemi Kayode Stadium.

    Also, N15.2 million would be used for the construction of a multipurpose sports hall in Oluyemi Kayode Stadium, while government also allocated N79.2 million and another N15 million to the Ekiti United Football Club and Ekiti Queens FC respectively.

    He assured that the present administration would leave no stone unturned in ensuring the full implementation of the 2021 Budget.

    “This is in fulfilment of the pact signed with the good people of the State, this can only be feasible when we as good citizens perform our civic responsibilities in ensuring payment of taxes and other levies to improve the revenue accruable to the Government”, he said.

  • FG to borrow from dormant bank accounts, unclaimed dividends to finance 2021 budget

    FG to borrow from dormant bank accounts, unclaimed dividends to finance 2021 budget

    The federal government (FG) has revealed plans to borrow monies in dormant bank accounts and unclaimed dividends to finance the 2021 budget.

    This information is contained in the Finance Act 2020 recently signed into law by President Muhammadu Buhari.

    According to the finance act, the monies recovered in the process would be transferred into an Unclaimed Funds Trust Fund.

    The Finance Act also stated that the trust fund will be a sub-fund of the Crisis Intervention Fund.

    The finance act reads: “Any unclaimed dividend of a public limited liability company quoted on the Nigerian Stock Exchange and any unutilised amounts in a dormant bank account maintained in or by a deposit money bank which has remained unclaimed or unutilised for a period of not less than six years from the date of declaring the dividend or domiciling the funds in a bank account shall be transferred immediately to the trust fund”.

    The act exempts official bank accounts owned by the federal government, state government or local governments or any of their ministries, departments or agencies.

    According to the act, the monies transferred to the trust fund will be a “special debt owed by the federal government to shareholders and dormant bank account holders”.

    The finance act also stated that the original owners of the money can claim it at any time and that the operation of the trust fund will be supervised by the Debt Management Office (DMO) and governed by a governing council chaired by the finance minister and a co-chairperson from the private sector appointed by the president.

    This move will make needed funds available to the federal government without foreign exchange worries or conditions attached to loans from multilateral lenders.

    Other members of the governing council shall include the governor of the Central Bank of Nigeria (CBN), director-general of the Securities and Exchange Commission (SEC), managing director of the National Deposit Insurance Corporation (NDIC), a representative of the registrars of companies, two representatives of the shareholders’ association, a representative of the Bankers’ Committee and the director-general of the Debt Management Office as the secretary of the trust fund.