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Tag: 36 states

  • Court fixes date to deliver judgment in $418m Paris Club debt suit against FG

    Court fixes date to deliver judgment in $418m Paris Club debt suit against FG

    A Federal High Court, Abuja, on Tuesday, fixed March 25 to deliver a judgment in the 418million dollars Paris Club debt suit filed by the 36 state governments against the Federal Government.

    Justice Inyang Ekwo fixed the date after counsel to the plaintiffs and the defendants adopted their processes and presented their arguments for and against the matter.

    The court had, on Nov. 5, 2021, restrained the Federal Government from deducting monies accruing to the 36 states from the federation account to settle 418 million dollars judgment debt in relation to Paris Club Refund pending the determination of the substantive suit.

    The court gave the order following an ex-parte motion moved by counsel to the plaintiffs, Jibrin Okutekpa, SAN.

    While the 36 states Attorney-Generals are the plaintiffs on the suit, some of the defendants listed in the suit include the Attorney-General of the Federation (AGF), Accountant General of the Federation and Ministry of Finance.

    Others are Central Bank of Nigeria, Debt Management Office, Federation Account Allocation Committee, Incorporated Trustees of Association of Local Government of Nigeria (ALGON), among others.

    According to the motion dated and filed Oct. 27, 43 defendants are sued in the matter. Although four prayers were sought for, Justice Ekwo granted three in the motion ex-parte.

    The reliefs sought by the plaintiffs include an order of interim injunction, restraining the Federal Government from deducting any money accruing or due to all or any of the 36 states of the federation.

    The senior lawyer, who informed the court that the Federal Government had not commenced the deduction of the monies, withdrew the fourth prayer, asking for a refund of the monies deducted.

    He hinted that the deduction was expected to begin in November, 2021. He said despite his clients’ protest against such action, the defendants had vowed to go-ahead with the deduction.

    He said if allowed, no state would be able to pay workers’ salaries. Besides, Okutekpa argued that the states were not party to any contract resulting in such debts.

    “That is why we ran to your court,” he said.

  • 36 states to get N18bn each as Buhari approves fresh bailout funds

    36 states to get N18bn each as Buhari approves fresh bailout funds

    President Muhammadu Buhari has approved a fresh N656.112 billion Bridge Financing Facility to the 36 States.

    This was disclosed Thursday at the National Economic Council (NEC) meeting presided over by Vice President Yemi Osinbajo.

    The vice president’s spokesman, Laolu Akande, in a statement issued after the meeting, said each state would receive N18.225 billion with a 30-year tenor, and a 2-year moratorium at an interest rate of 9%.

    According to the presidency, this step was taken in a bid to help state governments meet financial obligations, especially the previous budget support facility due for repayment.

    The Honourable Minister of Finance Budget and National Planning, Dr Zainab Ahmed, informed the Council that the Bridge Facility is now being processed by the Central Bank of Nigeria (CBN).

    The approved Bridge facility of N656.112 billion will be disbursed in six tranches over a period of six months to the States.

    It would be recalled that on 15th of July, 2021, the Council had received updates on the Budget Support Facility to States. At that meeting, the Finance Minister had informed the Council that the deductions from State Governments would commence soon as repayment for the previous bailout from the CBN.

    Subsequently, the States sought further support leading to the idea of bridge financing.

    Also at Thursday’s NEC, the Executive Director/CEO of the National Primary Health Care Development Agency (NPHCDA), Dr. Faisal Shuaib, informed the Council on the Status of the country’s COVID-19 Vaccine roll-out.

    Dr Shuaib noted that Nigeria has received over 100 million doses of COVID–19 vaccines (from COVAX, African Union, other countries) which he said was sufficient to ramp up vaccination for about 50 per cent of the targeted population.

    The total eligible population of Nigerians for the vaccine is over 111 million, he added.

    “Given the availability of vaccines, we have started rolling out a plan to vaccinate 50 percent of Nigerians, 18 years and above by January 31st, 2022,” the NPHCDA DG said, adding that there would be a scaling up of over 3,000 health facilities nationwide.

    In his presentation to the Council on State performance report on COVID-19, the Director-General, Nigeria Centre for Disease Control (NCDC), Dr. Ifedayo Adetifa said Nigerians must continue to maintain and sustain the COVID-19 response, especially as it enters the holiday period where there will be anticipated travels within and outside the country, as well as mass events to herald the holiday season.

    Adetifa said the country should “maintain visibility of the outbreak by testing, continuing to encourage adherence to public health and social measures, encourage vaccination and address vaccine hesitancy.”

    The DG, NCDC added that the Delta variant of the COVID-19 is still the dominant strain of concern in the country.

  • Paris Club: Court stops FG from deducting $418m from 36 states’ accounts

    Paris Club: Court stops FG from deducting $418m from 36 states’ accounts

    The Federal High Court in Abuja has stopped the Federal Government from executing its plan to deduct $418 million from the bank account of the 36 states of the Federation.

    Justice Inyang Ekwo issued a restraining order against the Federal Government on Friday following an ex parte application brought by the counsels to the 36 states, Jibril Otukepa and Ahmed Raji.

    While moving the application, Okutepa who led the legal team of the states told the judge that the states would be completely crippled if the federal government should go ahead to deduct the huge amount from the bank accounts of their clients.

    In 2006, Nigeria paid $12 billion to get a $18 billion debt write-off by the Paris Club of international creditors.

    States and local governments that did not owe the Paris Club, according to reports, later asked for a refund after it was discovered that the payment was made directly from the revenue accruing to the entire federation.

    Reports later emerged that some consultants, who claimed a percentage of the refunds as payment for services they said they rendered to the states and local governments, went to court in a bid to get their pay.

    The sum of $418 million was agreed as a judgment debt after the Federal Government opted to negotiate an out-of-court settlement with the contractors.

    But this move was rejected by the states who sought redress in court after the Federal Government said it would commence the deduction.

    The Attorneys-General of the 36 states were listed as plaintiffs in the suit filed by their lawyers on October 27.

    Joined as respondents included the President, the Attorney-General of the Federation, the Accountant-General of the Federation, and the Ministry of Finance.

    Others were the Central Bank of Nigeria, the Debt Management Office, the Federal Account Allocation Committee, and various commercial banks in the country.

    The states, among others, had also sought an order of interim injunction restraining the Federal Government, any of its agencies, or any other person from deducting any money due to the states for the payment of any judgement debts arising from contracts and suits in relation to the Paris Club Refund.

    They requested the refund of any money deducted by the government from the Federation Account so far in relation to the issue in dispute, without the express consent of the states.

    The states based the application on 13 grounds, which included that the plaintiffs were the attorneys-general and chief law officers of their respective states as created by the Constitution.

    “Part of the deductions in the FAAC summary is for the liquidation of judgement debts in favour of persons who neither had any contractual relationship with the plaintiffs/applicants nor obtained any judgement against any of the plaintiffs/applicants,” the fourth ground of the application read.

  • UK warns citizens against travelling to 12 Nigerian states

    UK warns citizens against travelling to 12 Nigerian states

    The United Kingdom has advised its citizens in Nigeria to steer clear of 12 states in Nigeria, saying Boko Haram insurgents were likely to kidnap foreign nationals.

    The UK Foreign, Commonwealth and Development Office, FCDO, which announced this in a travel advisory for its nationals weekend, said there was a high threat of kidnap throughout Nigeria for ideological, financial or political gain.

    The states include Borno, Yobe, Adamawa, Gombe, Kaduna, Katsina, Zamfara, Delta, Bayelsa, Rivers, Akwa Ibom and Cross River.

    The advisory read: “The groups have previously shown intent and capability to conduct kidnaps in Nigeria. Foreign nationals, including humanitarian workers, are likely targets for kidnap.

    ‘’Humanitarian hubs and workers have been targeted during attacks in the North East, including Monguno, Borno State on June 13 2020.

    “There’s a high threat of kidnap throughout Nigeria. Kidnaps can be motivated by criminality or terrorism and could be carried out for ideological, financial or political gain. Anecdotal evidence suggests that the risk of kidnap increases after dark.

    “The security environment in the North East has deteriorated since 2018 and there is a heightened risk of kidnap. Kidnaps in the North East have included humanitarian and private sector workers.

    ‘’There are also reports that Boko Haram and Islamic State West Africa, ISWA, are continuing to actively plan to kidnap foreigners.

    ‘’In North-East Nigeria, extremist groups operate in some northern and middle belt states, including Bauchi, Gombe, Kano, Kogi, Kaduna, Niger and Adamawa states. If you’re working or travelling in these States then you should be aware of the risk of terrorist kidnapping.”

    The UK government also advised its citizens to be careful as events to mark the one year anniversary of #EndSARS protests might lead to additional protests in Lagos and Abuja, adding also that the trial of Nnamdi Kanu, leader of Indigenous People of Biafra, IPOB, scheduled for October 21 might lead to protests and heightened security presence in Abuja and the South-East.

    “Since 9 August, there has been an increase in protests and demonstrations in the South East region of Nigeria. Protests, including “Stay at Home” protests, are likely during October in the South East region.

    ‘’There have been reports of violence during Stay at Home protests previously. You should monitor local media, avoid any demonstrations or large gatherings and follow any instructions from local police and security forces.

    “There have been a number of attacks and targeted killings in the South-east and Southsouth regions of Nigeria, including in the states of Akwa Ibom, Rivers, Imo, Abia, Anambra, Delta, Edo and Ebonyi.

    ‘’Some of these attacks have been on isolated roads and in remote locations, but there is a chance that they could occur in metropolitan areas. There is also a heightened risk of indiscriminate attacks on police and security infrastructure, which may inadvertently affect bystanders.

    “A number of states have imposed curfews. Travellers to these regions are advised to exercise caution if travelling in remote areas at night and follow local news and information outlets for further information, including on local curfews,’’ the advisory read further.

  • Buhari’s new salary scheme for teachers is burden on 36 states – Wike

    Buhari’s new salary scheme for teachers is burden on 36 states – Wike

    Rivers State Governor Nyesom Wike is not at ease with the incentives announced for teachers by President Muhammadu Buhari during anniversary of the World Teachers’ Day on October 5.

    He accused the Federal Government of imposing fresh financial burdens on states and creating crisis for the nation’s educational system through the announcement of incentives for teachers, including a new salary scheme.

    But the governor admitted that the teachers welfare was ripe for a review going by the key roles they play in the society.

    According to the governor, the new salary scale and the incentives were announced by the President without interfacing with states that have for long been pushing for a new revenue formula.

    He, however, admitted in a statement by his Information Commissioner Paulinus Nsirim, that there was a need for a review of teachers’ welfare in view of their critical roles.

    “The Federal Government has not been willing to come up with a new revenue formula. Instead, it is imposing a new financial burden on the states without consulting them. While it is good to give teachers a new salary scale, it is also important not to politicise such a sensitive issue,” the statement quoted Wike as saying.

    According to it, the governor spoke when the board of the College of Medical Sciences of the state’s university visited him at Government House, Port Harcourt.

    Wike promised that his administration would provide basic infrastructure to make the college one of the best in the country.

    He said that government would ensure that students admitted into the college enjoyed uninterrupted academic activities.

    Wike added: “The students will not be stagnated because the school will be made fully functional with both infrastructure and learning equipment. We are setting up the basic foundation for you to build on. The Medical College is my dream and I will provide everything required to make sure it is fully functional.

    “It is very expensive to run a medical college but we are not deterred. We shall build the hostels as requested as soon as we get the designs. We are making ashes to ashes mortuary to be available for the training of pathologists. The Dental and Maxilo-Facial Hospital will also be part of the college.

    “The Mother and Child Hospital is the best health facility now. It will not be run like the regular government hospital. It will be privately managed but will be available to students for their training.”

    Wike noted that the call for university autonomy should also include how to generate funds internally to administer the institutions.

    He said that university managements would not be asking government for assistance all the time if they managed their internally generated revenue properly.

    Pro-chancellor and Chairman of the Governing Council of the Rivers State University, Justice Iche Ndu, thanked the governor for his support to the institution.

    He noted that with the approval by the governor, the College of Medical Sciences employed qualified staff to provide training for students.

    Justice Ndu said: “I commend you for solving the problems of staffing. We now have 14 professors, three Readers, 30 senior lecturers, 106 lecturers and 74 technicians.”

    The institution’s Vice Chancellor, Prof Nlerum Okogbule, said the recent academic rating ranked varsity the sixth in the country.

  • Connect all 36 states by rail, Buhari tells Amaechi

    President Muhammadu Buhari has given the directive that all the 36 state capitals should be connected with rail in the ongoing railway projects.

    The Minister of Transportation, Chibuike Amaechi, said this on Thursday at the meeting with the Chairman Senate Committee on Local and Foreign Debts, Shehu Sani.

    The meeting, also attended by the Ministers of Finance; Budget and National Planning; and Power, Works and Housing, was in connection with President Buhari’s loan request of $5.5 billion sent to the Senate.

    Mr. Amaechi said that the central rail line project connecting several communities of northern and southern Nigeria would be completed in June, next year.

    According to him, 17 coaches are expected to arrive in November and out of the number, 10 will be deployed to Abuja-Kaduna rail line while the remaining seven will be deployed to the Itakpe-Warri rail line.

    Mr. Amaechi said that part of the money being requested now for approval by the Senate was to execute the rail projects covering Kano-Kaduna, and Lagos-Ibadan networks.

    Mr. Sani had earlier advised that if Nigeria “must borrow, it must borrow responsibly”.

    Mr. Sani said: “the committee has the mandate to examine the merits and otherwise of the current loan request of $5.5 billion of the president.

    “If we must bequeath to the future generation a pile of debt, it must be justified with commensurate infrastructural proof of the value of the debt.

    “The payment plan of this debt will undoubtedly last the length of our lifetimes and possibly beyond.

    “We must leave behind a legacy that will appease and answer the questions the next generation of Nigerians will ask,” Mr. Sani said.

    Senator Shehu Sani [Photo credit: Instagram]

    Also providing insight into the loan request, the Director-General, Debt Management Office, Patience Oniha, explained that the loans have sustainable benefits that would live beyond the present generation of Nigerians.

    “What we should take away is that we are going into projects whose benefits don’t go away.

    “The roads don’t go away, the schools don’t go away, and the hospitals don’t go away but all that we need to do is to maintain them properly and that is the explanation I want to make on that,” she said.

    (NAN)