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Tag: states

  • Dwindling revenue: FG warns states to cut down on overhead, ensure fiscal discipline

    The federal government on Monday advised states willing to raise their Internally Generated Revenue (IGR), to cut down on unnecessary overhead costs and ensure fiscal discipline.

    Finance Minister Mrs. Zainab Ahmed, who gave the counsel, said the application of such measures will enable governments at the states to properly manage the resources at their disposal.

    Mrs. Ahmed spoke at the opening of the 2018 Conference of the National Council on Finance and Economic Development (NACOFED) in Kaduna yesterday.

    Her Media and Communications’ aide Paul Ella Abechi said in a statement that the minister advised the states to “look inwards to harness various avenues to improve on their financial resources in order to meet demands in their states.”

    He said the minister was optimistic that the conference would afford the Federation Account Allocation Committee members, who are dominate the event, “a veritable forum for us to review the present Federation revenue sources, which we all agree is been monolithic”.

    The finance minister expressed the hope that participants will “be able to make actionable recommendations for sustainable improvement in the IGR and expenditure pattern. It is on record that due to persistent domestic fall in oil revenue, over the past years, it became extremely difficult, if not impossible for us to meet duly budgeted obligations.”

    She reminded members that they “need to develop cost effective strategies to increase our IGR, reduce unnecessary overhead costs, enthrone fiscal discipline and transparency so as to optimize available limited resources, while efforts are sustained to broaden our revenue base.”

    On the Federal Government’s part, she said the government will continue to account for all revenues accruing to the Federation Account in the most transparent manner and manage it efficiently to deliver on the dividends of democracy.

    She commended the wisdom behind the development of the new revenue reporting template that was engineered by her predecessor and the Commissioners of Finance. The implementation of the template, she noted, “will be one of the key reforms in revenue remittances into the Federation Account.”

    The minister urged the states to leverage on the sectors lying fallow in their states to consolidate on the financial allocation they receive from the Federation account.

    She said: “We must get back to agriculture, develop our solid minerals sector, further streamline and reinforce our tax collection systems, block all avenues for revenue leakages, continue to strengthen our borders to stem smuggling and abhor all forms of corruption.

    “We have to cultivate a new culture of efficient resource management and genuine paradigm shifts to enable us utilize the untapped resources in a more efficient manner.”

    These measures notwithstanding the mistakes of the past she said, “will rekindle our hope and embolden us to take practical steps towards unlocking the potentials in the non-oil sector in our respective states.”

    The minister had at the weekend in Lagos, said that strong capital market activities was instrumental in taking Nigeria out of recession and back to the path of positive growth.

    Mrs. Ahmed, who was represented by the Acting Director-General, Security and Exchange Commission (SEC), Ms. Mary Uduk, made the observation at the 22nd African Securities Exchanges Association (ASEA) Annual General Meeting and Conference in Lagos.

    She revealed that it was President Muhammadu Buhari’s decision to allocate money into the various sectors of the economy to stimulate economic growth.

    The minister noted: “Nigerian government’s deliberate effort gave support to the private sector a critical pillar in its policies, by ensuring macroeconomic stability and diversifying the economy from a focus on oil to other sectors and providing an enabling environment for the financial sector as a major catalyst in the implementation of the Nigeria’s Economic Recovery and Growth Plan (ERGP).”

     

  • FAAC: FG, States, LGAs share N698.71b for September

    The Federal Government, 36 States and FCT as well as 774 Local Governments on Thursday shared N698.7billion for the month of September.
    The Minister of Finance, Mrs Zainab Ahmed, said this in Abuja, while briefing newsmen on the outcome of the Federation Account Allocation Committee (FAAC) meeting.
    Giving a breakdown of the revenue accrued in September to be distributed in October, Ahmed said N569.28 billion which was received as gross statutory revenue, was lower than the N587.1 billion shared in August by N17.8 billion.
    A communiqué issued by the Technical Sub-Committee of FAAC showed that the distributable statutory revenue for the month stood at N569.28 billion and the total revenue distributable for the month was N698.7billion.
    It also showed that the gross revenue available from Value Added Tax (VAT), was N75.9 billion as against N109.9 billion distributed in the preceding month, resulting in a decrease of N33.9 billion.
    “We are also distributing N50 billion which has accrued from the forex equalisation account to the three tiers of government.
    “There is an exchange gain also of N0.275 billion that is included in the distribution.
    “So total distributable revenue to the three tiers of government for the month of October 2018 is N698.71 billion,” Ahmed said.
    In the summary of the distribution, the Federal Government got N265.6 billion from statutory revenue, N11.3 billion from VAT, N0.13 billion from the exchange gain and N22.9 billion from forex equalisation fund, culminating in N300.1 billion.
    The States got N134.75 billion from statutory revenue, N37.9 billion from VAT, N0.06 billion from the exchange gain and N11.6 billion from forex equalisation fund, culminating in N184.4 billion.
    The Local Governments got N103.8 billion from statutory revenue, N26.5 billion from VAT, N0.05 billion from the exchange gain and N8.96 billion from forex equalisation fund, culminating in N139.4billion.
    Derivation of 13 per cent of mineral revenue amounted to N59.09 billion and cost of collection/transfer and Federal Inland Revenue Service (FIRS) Refund was put at N15.57 billion.
    “Crude oil export sales increased by 0.17 million barrels resulting in increased revenue to the Federation of 8.48 million dollars.
    “However the average unit price dropped from 77.10 dollars to 75.69 dollars.
    Ahmed said that the report of the committee on the Excess Crude Account (ECA) was stepped down and withdrawn to enable the committee to rework and represent it at the next meeting.

  • UBEC to release N142.5bn to states

    The Universal Basic Education Commission (UBEC) will be disbursing N142.58 billion to support educational development in all states of the country, the Minister of Education, Malam Adamu Adamu, has said.
    Adamu made this known in Kaduna on Wednesday at the opening of a two-day Northern Nigeria Traditional Leaders Conference on Out-of-School Children.
    The conference was organised by Federal Ministry of Education, Universal Basic Education Commission, National Commission for Mass Education and Sultan Foundation for Peace and Development in collaboration with UNICEF.
    He also said that the World Bank had between 2016 and now issued 611 million dollars credit facility to support states with higher number of out-of-school children in the country.
    “The Federal Government had equally deducted N71.292 billion from Paris Club Refund, as outstanding UBEC counterpart Fund owed by states as at August 2018.
    “Such financial support to state through UBEC and Tertiary Education Trust Fund and other initiatives would be sustained,” he said.
    Adamu called on all relevant stakeholders to join hands in tackling the root causes of out-of-school children in the country.
    “We must provide our children with the needed knowledge and skills to realise their potentials and contribute to the development of our dear nation,” he added.
    The minister thanked the northern traditional leaders and relevant stakeholders for coming together to express collective commitment to addressing the phenomenon of out-of-school children in the country.
    in his message, Gov. Nasir El-Rufai of Kaduna State, also expressed concern on the increasing number of out-of-school children in the northern part of the country.
    According to him, a collective commitment of all stakeholders will go a long way in turning the disturbing educational indices in the north and the country at large.
    El-Rufai, who was represented by Prof. Kabiru Mato, Commissioner for Local Government and Chieftaincy Affairs, said that his administration is working to address the situation in the state.
    Earlier, Prof. Salisu Shehu, Deputy Secretary General, Nigerian Supreme Council for Islamic Affairs called for adequate funding to the education sector, and more sensitisation of parents and care givers to send their children to school.
    Similarly, Dr. Aishatu Dukku, Chairperson, House of Representatives Committee on Electoral and Political Party Matters, noted that much needs to be done given the state of education in Northern Nigeria.
    Dukku, a former education minister, pointed out that engaging traditional leaders was key to encouraging people to embrace Islamic and western education in the region.
    NAN

  • Fed Govt, states debts rise to $22b – DMO

    The Debt Management Office (DMO) on Wednesday put Nigeria’s external debt stock at $22 billion.

    Out of the amount, the Federal Government’s quotient is $17.8 billion, while the combined debt portfolio by the states and the Federal Capital Territory (FCT) stands at $4.28 billion.

    Of the combined states’ figure, Lagos State, the commercial nerve-centre of Nigeria, has the highest foreign portfolio of $1.45 billion, or 33.88 per cent of the states’ debts.

    The debt status from the DMO, were as a June 30, 2018. Going by the data, the Federal Government accounts for 81 per cent of the country’s external debt, while the states and the FCT account for 19 per cent.

    Following Lagos in that sequence is Edo State which stands at a distant second with external debt of $279 million.

    Others are Kaduna, $232.9 million; Cross River, $193.7 million; Bauchi, $134.9 million and Enugu, $127.9 million.

    The DMO listed other debtor states as Anambra which is owing $107.4 million; Oyo, $106.34 million; Ogun, $105.3 million; Osun, $101.5 million and Abia, $100.2 million.

    Others are Ekiti with a debt overhang of $97.9 million; Ondo $81.4 million; Rivers, $79.5 million; Ebonyi, $67.9 million; Kano, $65 million; Katsina, $64.7 million and Delta, $63.8 million.

    The DMO said Imo incurred a debt of $61.2 million; Nassarawa, $61.4 million; Adamawa, $57.8 million; Niger, $55.7 million; and Bayelsa $57.2 million. Also in the foreign debt conundrum are Akwa Ibom with $48.3 million; Kebbi, $46.7 million; Kwara, $49.8 million and Sokoto $40.2 million.

    At the tail end of the debt profile are Taraba, with $22.1 million; Borno, $22.2 million; Yobe, with $28.4 million and Plateau with $29.6 million.

    Others are Kogi, with 32.37 million dollars; Jigawa, 32.80 million dollars; FCT, 32.83 million dollars; Zamfara, 34.2 million dollars; Benue, 34.7 million dollars and Gombe, 38.5 million dollars.

    The Director-General of DMO, Ms. Patience Oniha, said as at June 30, the nation’s public debt stock increased marginally by 3.01 per cent from that of December, 2017.

    “One of the beneficial outcomes is the rebalancing of the debt stock, the ratio of domestic debt to external debt inching towards the target of 60:40 and the target of 75:25 between long term domestic debt and short term domestic debt.

    According to the figures for June 30 released by the DMO, the ratio between domestic and external debt stood at 70 to 30 compared to 73 to 27 in December, 2017.

    Ms.Oniha said the ratio of 60 to 40 was important to ensure that the nation was not 100 per cent indebted externally, and that it was also easier to raise money domestically.

    She said the Federal Government has been borrowing from the external debt market to refinance maturing local debts because of the lower interest rates obtainable from foreign sources.

     

  • Respite for workers as FAAC releases N668bn to FG, states, LGs to pay salaries

    The Federation Accounts and Allocation Committee (FAAC) reached a compromise to release N668.898 billion to the three tiers of government for the month of May, pending the resolution of issues raised by the state governors over remittances from the Nigerian National Petroleum Corporation (NNPC).

    The Federal Ministry of Finance on Friday, that, the move was to cushion the hardship being experienced by civil servants in many states of the country, who have been unable to receive their June salary.

    The ministry’s director of information, Hassan Dodo, who signed the statement said, “efforts are being intensified to address the unsatisfactory remittances.”

    Recall that the 36 state governors had accused revenue generating agencies, especially the NNPC, of withholding some monies that ought to go into the federation account for sharing.

    The N668.898billion released on Friday afternoon, according to Dodo, “is made up of statutory distributable sum of N575.475 billion and N 93.423 billion from the Value Added Tax (VAT).”

    The Federal Government received N282.223 billion of the total; State Governments – N181.167 billion; and Local Government Councils – N136.490 billion.

    The Oil Producing States got N53.071 billion as 13 per cent derivation while N15.947 billion was paid to the revenue generating agencies as costs of collections.

    The statutory revenue of N575.475 billion received for the month of May 2018 was lower than the N613.057 billion received for April 2018 by a total of N37.582 billion. From the total statutory revenue of N575.475 billion, the Federal Government was given N268.770 billion; the States – N136.324 billion; Local Government Areas – N105.100 billion; the Oil Producing States – N53.071 billion, and the revenue generating agencies received N12.210 billion as costs of collections.

    For the month of May 2018, the total revenue of N93.423 billion from the Value Added Tax (VAT) was N5.458 billion higher than the N87.965 billion distributed in April 2018.

    From the total of N93.423 billion, the Federal Government received N13.453 billion; the States received N44.843 billion; the Local Government Councils received N31.390 billion, while N3.737 billion was received by the revenue collecting agencies.

    Before the funds were released, state governors had directed their finance commissioners not to shift ground, unless the NNPC was prepared to remit fully, what is expected of it, into the federation account.

    As a first measure to stop future shortchanging of the federation account, the state governments had resolved to “strengthen the processes” of making revenue generating agencies transmit accurate amounts to the federation account.

    For three consecutive FAAC meetings, the remittances to the federation account by the NNPC had generated controversy, with the issue coming to a head, when NNPC remitted N127 billion into the account, instead of the expected N147 billion from royalties and Petroleum Profit Tax (PPT).

    The impasse forced Finance Minister, Kemi Adeosun, to seek President Buhari’s intervention in the matter.

  • TUC, NLC demand probe of bailout funds to states

    The Organised Labour has called for immediate probe of state governments involved in diversion of bailout funds meant for payment of salaries and pension arrears in the country.

    President, Trade Union Congress (TUC), Mr Bobboi Kaigama, made the call at the 2018 May Day celebration for workers in the country on Tuesday in Abuja.

    The theme for the May Day Celebration is, “Labour Movement in National Development: Dare to Struggle, Dare to Win.’’

    Kaigama said the diversion of the bailout funds have been a growing concern to the organised labour.

    According to him, as we speak, many states still owe their workers between five and ten months’ salaries and pensions arrears.

    “We demand immediate probe for state governments that are known to have diverted the funds, while culprits should be made to face the full weight of the law.

    “ What the erring states have done is a form of terrorism against the Nigerian workers.

    “Meanwhile, we have identified the states that owe salaries and pensions arrears and serious mobilisation is ongoing to vote out such governors in the next general election in their states,” he said.

    The TUC President, while speaking on the challenges of the economy, expressed concern on the dearth of infrastructure; insecurity, weak naira and less investment on human capital development, among others.

    He, however, decried the delay in the passage of the 2018 National budget.

    “Four months into 2018, the national budget has not been passed.

    “This is counterproductive to the economy and makes us a laughing stock in the eyes of the world,” he said.

    Also speaking, Mr Ayuba Wabba, President, Nigeria Labour Congress (NLC), said the budgetary framework in the country remained frail as appropriation bills stall longer than necessary before they are passed into law.

    Wabba said the 2018 budget was a case in point as it was still trapped in the National Assembly four months into the year.

    He noted that this has further compounded the sufferings of Nigerians whose daily sustenance depends on the budget.

    “We are worried by the unnecessary bickering between the National Assembly and the Presidency over the budget.

    “We call for an overhaul of our budgetary system, improved relations between the legislature and the executive and cutting down of wastes in government,” he said.

    The NLC president also said that the fight against corruption is a collective battle and has to be transparent and holistic.

    He said that corrupt persons in and outside government must be dutifully tracked and diligently prosecuted.

    He stressed the need for the reformed of the judiciary, saying that the recovery of looted funds must be transparently accounted for and utilized to revitalize the economy and attend to the welfare of citizens.

    He further called on the Federal Government to address the disparity between the remuneration of political office holders and other workers in the public sector.

    According to him, it is also important that we tackle the wide gap between actual budget appropriation and releases.

    “We should strengthen processes that ensure that government institutions are made to account for public resources committed to their care.

    “We demand for specialised courts to speed up the prosecution of all corruption cases. Cases must be dispensed within a specified period of time,” he added.

  • Half of Nigeria’s 36 states insolvent, survive on allocations from FG – Report

    The Economic Confidential has released its Annual States Viability Index (ASVI) which shows that 17 states are insolvent as their Internally Generated Revenues (IGR) in 2017 were far below 10 per cent of their receipts from the Federation Account Allocations (FAA) in the same year.

    The index proved that without the monthly disbursement from the Federation Account Allocation Committee (FAAC), many states remain unviable, and cannot survive without the federally collected revenue, mostly from the oil sector.

    The IGR are generated by states through Pay-As-You-Earn Tax (PAYE), Direct Assessment, Road Taxes, and revenues from Ministries, Departments and Agencies (MDA)s.

    The report by this economic intelligence magazine further indicates that the IGR of Lagos State of N333 billionn is higher than that of 30 States put together whose internal revenues are extremely low and poor compared to their allocations from the Federation Account.

    The states with impressive over 30 per cent IGR apart from Lagos are Ogun, Rivers, Edo, Kwara, Enugu and Kano states who generated N607 billion in total, while the remaining states merely generated a total of N327 billion in 2017.

    Recently the magazine published the total allocations received by each state in Nigeria from the Federation Account Allocation (FAA) between January to December 2017. The latest report on IGR reveals that only Lagos and Ogun States generated more revenue than their allocations from the Federation Account by 165 per cent and 107 per cent respectively and no any other state has up to 100 per cent of IGR to the federal largesse.

    The IGR of the 36 states of the federation totalled N931bn in 2017 as compared to N801.95 billion in 2016, an increase of N130 billion.

    From the report, the states with less than 10 per cent IGR have jumped to 17 from 14 states in the previous year 2016. The poor states may not stay afloat outside the Federation Account Allocation due to socio-political crises including insurgency, militancy, armed-banditry and herdsmen attacks. Other states lack foresight in revenue generation drive coupled with arm-chair governance.

    The states that may not survive without the Federation Account due to poor internal revenue generation are Bauchi which realised a meagre N4.3 billion compared to a total of N85 billion it received from the Federation Account Allocation (FAA) in 2017 representing about 5 per cent; Yobe with IGR of N3.59 billion compared to FAA of N67 billion representing 5.33 per cent; Borno N4.9 billion compared to FAA of N92 billion representing 5.41 per cent; Kebbi with IGR of N4.39 billion compared to N76 billion of FAA representing 5.77 per cent and Katsina with IGR of N6 billion compared to N103 billion of FAA representing 5.8 per cent within the period under review.

    Other poor internal revenue earners are Niger which generated N6.5 billion compared to FAA of N87 billion representing 7.43 per cent; Jigawa N6.6 billion compared to FAA of N85 billion representing 7.75 per cent; Imo N6.8 billion compared to FAA of N85 billion representing 8.1 per cent and Akwa Ibom N15 billion compared to FAA of N197 billion representing 8.06 per cent, Ekiti N4.9 billion compared to FAA of N59 billion representing 8.38 per cent; Osun N6.4 billion compared to FAA of N76 billion representing 8.45 per cent, Adamawa N6.2 billion compared to FAA of N72.9 billion representing 8.49 per cent; Taraba N5.7 billion compared to FAA of N66 billion representing 8.70 per cent and Ebonyi N5.1 billion compared to FAA of N57.8 billion representing 8 per cent.

    Meanwhile, Lagos State remained steadfast in its number one position in IGR with a total revenue generation of N333 billion compared to FAA of N201 billion which translate to 165 per cent in the twelve months of 2017. It is followed by Ogun State which generated IGR of N74.83 billion compared to FAA of N69 billion representing 107 per cent. Others with impressive IGR include Rivers with N89 billion compared to FAA of N178 billion representing 50 per cent; Edo with IGR of N25billion compared to FAA of N75 billion representing 33 per cent. Kwara State however with a low receipt from the Federation Account has greatly improved in its IGR of N19 billion compared to FAA of N61 billion representing 32 per cent while Enugu with IGR of N22 billion compared to FAA of N69 billion representing 32 per cent. Kano generated N42 billion compared to FAA of N143 billion representing 30 per cent while Delta State earned N51 billion IGR against FAA of N175 billion representing 29 per cent.

    The Economic Confidential ASVI further showed that only three states in the entire Northern region have IGR above 20 per cent. They are Kwara, Kano, and Kaduna States. Meanwhile ten states in the South recorded over 20 per cent IGR in 2017. They are Lagos, Ogun, Rivers, Edo, Enugu, Delta, Cross River, Anambra, Oyo and Abia States.

    The states with the poorest Internally Generated Revenue of less than 10 per cent in the South are Bayelsa, Ebonyi, Osun, Ekiti, Akwa-Ibom and Imo States while in the North we have Gombe, Zamfara, Taraba, Adamawa, Jigawa, Niger, Katsina, Kebbi, Borno, Yobe and Bauchi States

    Meanwhile, the IGR of the respective states can improve through aggressive diversification of the economy to productive sectors rather than relying on the monthly Federation Account revenues that largely come from the oil sector.

     

  • Wike canvasses separate minimum wages for states

    Rivers State Governor, Nyesom Ezenwo Wike has stated that Nigerian workers will be better off when states are allowed to fix their separate minimum wages in line with their financial capacity to pay.

    Speaking during a public hearing on the new national minimum wage for Nigerian workers for the South-South geo-political zone in Port Harcourt on Friday, Governor Wike said that states vary in financial capacity, making a uniform minimum wage unrealistic.

    He said: “And for us, therefore, the single national minimum wage system is yet, another lie that betrays the distortions in our federation and the structured dislocation of the States in the power equation between the Federal Government and the federating States.

    “It is our view that the country and its workers would be better of, if States are allowed to fix and pay their own minimum wages indexed to the prevailing cost of living and ability to pay.

    “When this happens, it is possible that some States may go beyond the minimum threshold to pay a living wage, which is what our workers truly need”.

    Governor Wike said that the previous review exercise failed to give maximum weight to the existing disparity in economic potential and capabilities among the 36 States of the federation, adding that it has been difficult for most of the States to implement the existing N18, 000.00 minimum wage.

    He noted that majority of the States are within the fringes of financial viability and cannot meet their salary obligations to civil servant without bailouts from the Federal Government.

    He said that enhanced wages can only be possible when the Federal Government improves the economy of the Federation.

    He said: “Here in Rivers State, we value our workers; we invest in their welfare in different ways, and we want them to earn living wages that can keep them and their families as comfortable as possible.

    “The Rivers State Government, therefore, supports the ongoing consultations by the Tripartite Committee on National Minimum Wage for arriving at a new national minimum wage floor for the country.”

    In his opening remarks, Minister of Labour and Productivity, Dr Chris Ngige said the exercise has been held across the six geo-political zones to ascertain the needs of Nigerian Workers and employers to reach an acceptable and implementable wage.

    He said: “It is hoped that at the end of the exercise, we will be able to have women and men who will be engaged in productive work in equable conditions of freedom to associate and bargain collectively with equality and human dignity “.

    Ngige who is also the chairman of tripartite committee on National Minimum Wage, said the aim is to ensure that the nation adopts a national minimum wage that will assure the attainment of social protection floor for Nigerian citizens.

    Presenting the position of Nigerian Labour Congress in the South-South, Comrade Beatrice Otubo called for a living wage for workers.

    Also speaking, representative of Trade Union Congress in the South-South, Comrade Austin Jonathan pleaded that pensioners should be considered in the new wage regime.

    The public hearing attracted the representatives of the Governors of Bayelsa, Cross River, Akwa Ibom, Edo and Delta States. Also present at the meeting were labour leaders from the six states of the geo-political zone.

  • FAAC: FG, States, LGs settle differences with NNPC; share N626.8b for April

    The federal government, states and local governments shared N626.8 billion for the month of April.

    Ahmed Idris, the Accountant-General of the Federation (AGF), said this on Thursday in Abuja, while briefing Journalists on the outcome of the Federal Account Allocation Committee (FAAC) meeting.

    Giving a breakdown of the revenue accrued in March, Mr Idris said N480.59 billion was received as gross statutory revenue, lower than N557.94 billion received in March by N77.34 billion.

    He said the reduction in revenue was due to a decrease in the crude oil export sales by 13 per cent when compared to 5.42 million barrels from the previous month.

    “The issues that negatively affected production were the Shut-ins and Shut-downs at various terminals for repairs and maintenance.

    “This resulted in reduced revenue from federation crude oil exports sales by 33.58 million dollars.

    “However, the average crude oil price increased from 63.08 dollars to 65.72 dollars per barrel.

    “There was a considerable rise in oil royalty for the month, while Companies Income Tax (CIT) and Import Duty recorded marginal increases.

    “Value Added Tax (VAT) decreased slightly but there was a significant drop in income from Petroleum Profit Tax (PPT).’’

    He said N83.7 billion was received from VAT, showing a decrease of N5.74 billion as against N89.4 billion received in February.

    Mineral revenue was N360.5 billion, indicating a decrease of N83.7 billion from the previous month, while non-mineral revenue was N120 billion, with an increase of N7 billion.

    For the Excess Crude Account (ECA), Mr Idris said the balance stood at 1.83 billion dollars from 2.3 billion dollars in the previous month.

    The shared amount comprised the month’s statutory distributable revenue of N480.5 billion, VAT of N83.7 billion and Forex Equalisation of N62.52 billion.

    Giving a breakdown of the distribution, he said N263.1 billion was allocated to the Federal Government, N167.5 billion to states and N126.29 billion was received by the local governments.

    Speaking on the issue of reconciliation of accounts with the Nigerian National Petroleum Corporation (NNPC), Mr Idris said it was ongoing.

    “There is no public finance system that will be devoid of reconciliations at any time.

    “So reconciliation is part of the order and in that particular instance, reconciliation that has started last month, continued this month and there is nothing new.

    “We could not meet yesterday because we felt certain milestone has to be reached and on getting to those milestones, we sat today and have considered the figures for distribution.

    “There was this gentleman agreement between FAAC and NNPC that whatever NNPC generates should be paid into the federation account and whatever expenses NNPC incurs, they should write to claim it.’’

    He said as far as the operations of the NNPC was concerned, vis-a-vis the retirement of FAAC, these were issues being considered during the state level discussion and there would be reports when they had been sorted out.

    He, however, said the amount being expected from NNPC after the reconciliatory process was not confirmed and would not want to speculate.

    “We do not talk on mere speculation or on hearsay, we have to wait for the amount to come and we pay to the last kobo.

    “We know what will be distributed and that is accounting and that is public finance.

    “We do not base our projections on speculations because there has to be factual data,’’ Mr Idris said.

     

  • States will get refunds for expenditures on federal roads – Buhari

    …Commends security agencies for peace efforts in Zamfara

    President Muhammadu Buhari on Thursday assured state governors of getting refunds for their efforts at fixing federal road networks in their domains.

    The President dropped the hint during his visit to Zamfara State after Governor AbdulAziz Yari’s request for the refund of the N56 billion being owed the state on federal road projects it executed.

    The President said he had directed Power, Works & Housing Minister Babatunde Fashola to compile all outstanding payments of refunds to the states that implemented federal projects to specifications.

    He expressed the hope that the refund would go a long way in addressing the security problems facing Zamfara state.

    Yari, who doubles as the Chairman of the Nigerian Governors’ Forum (NGF), called for additional deployment of security personnel to the state to check incessant cases of armed banditry across 13 out of the 14 local government areas of the state.

    In a presentation, the Secretary to the Zamfara State Government (SSG), Prof. Abdullahi Mohammed, gave an overview of the security challenges in the state in the last eight years, resulting in loss of lives and property.

    According to him, the state has been witnessing three types of security crisis, namely cattle rustling, kidnapping for ransom and reprisals attacks.

    The SSG explained that Zamfara State had identified eight major flashpoints and made a passionate appeal to the Federal Government to deploy more security in the state.

    House of Assembly speaker Sanusi Garba said a fact-finding committee inaugurated last year had enumerated the number of causalities recorded as a result of the activities of bandits in the state.

    Zamfara has witnessed cases of attacks by armed bandits with hundreds of innocent people killed and property worth billions of naira carted away or destroyed.

    The recent attack by bandits at Birane village in Zurmi Local Government area of the state left over 50 people dead.

    President directed security agencies to improve their strategies of intelligence gathering, surveillance and accuracy in deployments, and ensure that criminal activities were brought to an end across the country.

    Speaking during an interactive meeting with political leaders, traditional rulers, elders and victims of criminal attacks in Zamfara State, President Buhari assured all security agencies of improved conditions that will facilitate apprehending criminals that steal, maim and kill innocent Nigerians.

    He said: “As far as I am concerned, our security agencies have recorded some successes, but they need to do much more.

    “They are not to oppress anyone, but they have to gather and send intelligence and warnings when something is about to happen.’’

    The President commended the security agencies for eliminating a dreadful criminal, “Buhari general”, who had for many years initiated killings and destruction of properties.

    Before “Buharin-daji”, who calls himself a general, there was a criminal who killed many people and he was killed; “Buharin–daji’’ has followed him and others like them should also follow,’’ he added.

    The President said the threats to lives and properties will be significantly reduced with improved relations among community leaders, citizens and the security agencies.

    He said: “I have come here to commiserate with you over loss of lives and properties. We will continue to do our best to improve the security situation. However, those committing atrocities live with you.

    “Some of these people are not reported because you don’t trust the security outfits, instead you report back to the criminals. We should give priority to security,’’ he said.

    The President warned that the ongoing war against corruption would be reinvigorated and sustained until public officers, who abused their positions, faced the wrath of the law.

    He told the elders and traditional rulers that properties that had been confiscated by security outfits from some suspected corrupt public officials will be sold out, after the completion of court procedures.

    Buhari urged Nigerians to take advantage of the ongoing reforms in the agricultural sector, pointing that the era of depending on petrol will one day come to an end.

    On herdsmen attacks, the President said there was a need to revisit and review the old grazing area arrangements that guaranteed harmonious relationship between farmers and herdsmen, where differences were amicably resolved through the law without violence.

    Governor Yari said the state government had deployed resources that were initially designated for development into fighting criminal activities.

    The governor, who commended the security outfits for working hard to protect the state, pleaded with the Federal Government to improve the funding of operations, increase the number of security men working in the state and reimburse the state for monies spent on some Federal Government projects like roads, which he said was a major priority in fighting criminals.

    Listing the eight major flashpoints, the SSG that 1,321 lives had been lost since 2011, while 1,881 people sustained various injuries from attacks, with about N14 billion spent on fighting the menace.

    The traditional rulers, elders and leaders of the affected communities also pleaded with the government to ensure immediate security intervention in order to save lives.

    The President in company of his aides, landed at the Gusau helipad at about 10.40a.m after taking off from Umaru Musa Yar’Adua international airport in Katsina.

    Governors Alhaji Aminu Tambuwal (Sokoto) and Atiku Bagudu (Kebbi) some ministers, traditional and religious leaders, top government officials were among those that received the president.

    President Buhari reviewed a parade mounted by the Army and Air Force.