Tag: states

  • FG commences payment of second tranche of Paris Club refund to states

    FG commences payment of second tranche of Paris Club refund to states

    The Federal Government on Monday commenced the payment of the second tranche of the Paris Club refund to states of the federation.

    According to a report by The Nation, Ekiti, which got N9.5 billion in the first tranche, has received another N4.772 billion; Abia got N5.715 billion.The state received N11.4 billion in the first tranche. Governor Ayo Fayose’s Media Adviser Lere Olayinka confirmed Ekiti’s receipt of the second tranche. Commisioner for Finance Obinna Oriaku confirmed that of Abia.

    But the total amount paid out by the Ministry of Finance could not be confirmed. Top officials of the ministry said they were waiting for clearance from Minister of Finance Mrs Kemi Adeosun before giving out that information.

    TheNewsGuru.com reports that President Muhammadu Buhari initiated the refund to enable states meet their financial obligations, especially to workers and pensioners.

    In the first tranche, a total of N516 billion was released to the 36 states and the Federal Capital Territory (FCT). The Ministry of Finance spokesman, Salisu Dambatta, in a statement after the release of the cash, said: ”The debt service deductions are in respect of the Paris Club, London Club and Multilateral debts of the Federal Government and states.

    While Nigeria reached a final agreement for debt relief with the Paris Club in October 2005, some states had already been overcharged.

    The funds were released to state governments as part of the wider efforts to stimulate the economy and were specifically designed to support states in meeting salary and other obligations, thereby alleviating the challenges faced by workers.

    The releases were conditional upon a minimum of 50 per cent being applied to the payment of workers’ salaries and pensions.

    Oriaku said what Abia got was lower than the N11 billion to N12 billion it was expecting. He added, however, that Governor Okezie Ikpeazu had directed that despite “the shortfall, the funds should be committed wholly to salary arrears”.

    He said the state could no longer meet up with its promise to clear all arrears of wages at the end of this month because of the reduction in its entitlement.

    The shortfall, the commissioner said, would impact on the government’s plan to clear outstanding salary arrears as promised by the governor.

    Oriaku said labour leaders were informed of the development at a meeting yesterday, adding: “Despite the shortfall, Governor Ikpeazu has instructed that the funds be committed wholly to salary arrears”.

    He said the committee of government officials and labour leaders that shared the first tranche would also share the second tranche, adding that areas that needed more attention would be given priority.

    According to him, Ministries, Departments and Agencies (MDAs) workers were owed one month salary. Some agencies’ workers are owed much more, he added.

    State NLC Chairman Uchenna Obigwe expressed concern over the development saying workers and pensioners were full of expectations.

    Obigwe said they learnt from their colleagues in other states that the state that got the highest amount got N6 billion.

     

  • FG approves use of promissory notes to offset contractors, states’ debts

    FG approves use of promissory notes to offset contractors, states’ debts

    The Federal Executive Council (FEC) on Wednesday approved promissory notes for offsetting the debts owed contractors and state governments.

    This was revealed by the Minister of Finance Mrs Kemi Adeosun to State House correspondents at the end of the Federal Executive Council (FEC) meeting at the Presidential Villa in Abuja.

    With her were Federal Capital Territory (FCT) Minister Mohammed Bello, Head of Service of the Federation Winifred Oyo-Ita and Special Adviser on Media and Publicity Femi Adesina.

    Adeosun said a rigorous and strong process would be put in place to ascertain the debts that had accrued since 2006.

    The debts, she said, also included pension liabilities and unpaid salaries.

    In her words: “Federal Executive Council approves a process to validate and pay inherited Federal Government contractors and employee liabilities

    Obligations accumulated over the last two decades to be paid through bond and promissory note issuance to resolve long outstanding dues and stimulate economic activity

    The Federal Executive Council has today approved the Ministry of Finance’s proposed validation process and promissory note and debt issuance programme to resolve a number of inherited and long outstanding Federal Government (FG) obligations to contractors, state governments and employees.

    This will be followed by a request to the National Assembly to approve the programme ahead of implementation.

    In March 2017, the Economic Management Team, under the leadership of His Excellency Acting President Yemi Osinbajo, mandated the Minister of Finance to chair a committee that would establish a process to confirm the validity of inherited Federal Government obligations, and propose a mechanism to resolve them.

    These obligations largely consist of dues owed to state governments, oil marketers, power generation and distribution companies, suppliers and contractors by FG parastatals and agencies, payments due under the Export Expansion Grant (EEG), outstanding judgement balances as well as pension and other benefits to Federal Government employees. Some of the obligations date back as far as 1994. The resolution of this will significantly enhance liquidity in critical sectors of the economy.

    Following an exhaustive process of reconciliation, the committee has been able to provisionally confirm a discounted total of N2.7 trillion of obligations, consisting of N740 billion of outstanding pensions and promotional salary arrears (not discounted) and N1.93 trillion (discounted) of other obligations, including dues to Federal Government contractors and suppliers.

    These numbers are aligned with existing Federal Government estimates and, in some cases, are lower than previously estimated.”

    The supplier and contractor obligations will be resolved through a strict process of final validation, following which those confirmed will be settled through the issuance of liquid promissory notes (10-year tenure), phased over a three-year period to minimise impact on liquidity and with preference given to those willing to offer the largest discounts.

    Obligations owed to individuals (for example pensions and employee benefits) will be resolved through the issuance of specific bond instruments, again phased over the next three years. These obligations will then be incorporated into the Medium- Term Expenditure Framework by the Ministry of Budget and National Planning,” she said.

    Mrs. Adeosun noted that the economy cannot move at the right pace if the legacy issues inherited are not addressed.

    The issues, she said, act as a significant drag on economic activity.

    The government must be a driver of growth, and enable private sector activity. It should not be the most significant obligor to many value creating businesses. At the same time, we have an obligation to our Federal Government employees to address these long-outstanding pension and employment benefit issues.

    We are doing this systematically, and we want to do so once and for all. We are enhancing the government’s controls and processes to ensure we do not find ourselves in this situation again.”

    Over the last two decades, the Federal Government has built up over N2.7 trillion of obligations which were not cash backed, and remain outstanding to this day. We have developed a solution that will simultaneously resolve these issues, and deliver a boost to economic performance.

    Our solution will remove the drag on economic performance these obligations cause, improve liquidity in key sectors, especially the power sector where we will resolve Federal Government dues to the distribution and generation companies, and so boost investor confidence. It will also help to improve non-performing loan ratio’s in the banking sector, where an unacceptable number of NPL’s are linked to Government contracts.” she added

    According to her, the total size of the obligations identified are N3.4 trillion.

    The debts, she said, included “non-payment of fuel subsidy dating back many years on which interest was accruing according to the contracts.

    Unpaid electricity bills by MDAs and obligations accruing to distribution companies, including those from the 50% reduction in electricity tariffs in March 2015.

    Unpaid salary obligations outstanding since 2012 and pension arrears, etc.

    Outstanding contractor obligations. Judgment obligations dating as far back as 1994,” she said

    Mrs. Adeosun went on: “By recognising the discounted obligation, we will be effectively restating our debt position, increasing the debt to GDP ratio from 18.9% to 21.5%, however, according to MTEF forecasts, the ultimate impact on debt service to revenue is minimal, as debt service to revenue is forecasted to move from 35.78% to 35.84% after the full bond issuance if approved.”

    Following the approval of the Federal Executive Council, she said that the next steps include “request approval from the National Assembly for the debt issuance to resolve the pension and employee benefit issues.”

    Complete the process of validating and inspecting the contractor projects (at least 80% will be physically inspected by an independent third party (to be witnessed by relevant Civil Society Organisations) while all documents related to debt claims will be independently reviewed by a major international accountancy firm for validation).

    DMO to issue the first tranche of debt to pay the pension and salary obligations.

    The first round of promissory notes to be issued to contractors,” Mrs Adeosun said.

     

  • FG, States to partner private sector in construction, rehabilitation of prisons – NEC

    The federal and state governments have agreed to partner the private sector in the construction and rehabilitation of prisons across the country, Ebonyi governor Dave Umahi, has said.

    Umahi made the statement on Thursday in Abuja while briefing State House correspondents on the outcome of the meeting of the National Economic Council (NEC).

    Gov. Ibrahim Dankwambo of Gombe state and Dr Sani Aliyu, Director-General, National Agency for the Control of Aids, accompanied Umahi in the briefing.

    The meeting was presided over by Acting President Yemi Osinbajo.

    Umahi said the agreement was arrived at after the Minister of Interior, General Abdulrahman Danbazau (rtd) and the Controller-General of Prison, briefed the council on the state of the nation’s prisons.

    He said that in their separate briefing, the two men presented the state of prisons in Nigeria and painted “an appalling’’ picture of structures and logistics in the prison system.

    The Minister of Interior and the Controller-General of Prison came to brief us about the status of our prisons and inmates throughout the country.

    The situation painted by the minister and the CG of Prison was quite pathetic.

    It was also agreed that states that have the capacity to build prisons should go ahead including private sector participation.

    The Minister made it very clear that over 70 per cent of inmates are awaiting trial, ‘’ he said.

    Umahi said that governors who attended the meeting were unanimous on the need to rehabilitate prisons in the country.

    He said: “It was indicated that states that have the capacity should as soon as practicable lend helping hand to provide facilities that will help decongest the prisons and improve the state of the inmates.’’

    The Ebonyi governor told newsmen that the Senior Special Assistant to the President on Sustainable Development Goals (SDGs) briefed the NEC on the implementation of the SDGs in the country.

    In his contribution, Gov. Dankwambo said that Finance Minister, Mrs Kemi Adeosun, announced a balance of $2.3 billion dollars in the Excess Crude Account.

    He said that the Accountant-General of the Federation gave update on the Stabilisation Fund, Natural Resources Development Fund and Ecological Fund:

    Dankwambo quoted the AGF as saying that the balance in the stabilisation fund as at June 28 was N28.5 billion; Natural Resources Development Fund was N87.6 billion while Ecological Fund was N28.9 billion.

    On the Budget Support Loan Facility, Dankwambo said the Acting President had directed that “the facility continues until claims of other states are paid. ”

    The Budget Support Loan Facility is an initiative of the Buhari administration to help states boost their finances in the light of dwindling funds from the Federation Account.

    Dankwambo said he briefed the meeting on the progress made by the Ad Hoc Committee on Excess Crude Account constituted by the NEC.

    He said that 10 out of 18 Ministries, Departments and Agencies (MDAs) had been audited; adding that a comprehensive report should be expected by next meeting of NEC.

    In his remark, NACA Director-General stressed the need to set aside between 0.5 per cent to 1 per cent of monthly federal allocation to states for financing HIV/AIDS programme.

     

    NAN

  • There’s nothing romantic about war, Babangida warns agitators

    Says…

     

    Media should be more patriotic

    Hate campaign can lead to civil

    Calls for creation of state police

    backs calls for restructuring

    Former Military Head of State, Gen. Ibrahim Babangida has warned Nigerians particularly the youths on the danger of calling for war through violence and hate speeches insisting that there was nothing good to expect from the outcome of such horrendous journey.

    Babangida also joined the leagues of influential Nigerians advocating for the restructuring of the nation.

    The former Head of State noted that it was time the states are empowered to take more responsibilities while the Federal Government takes care of the nation’s foreign policy, defence, and economy.

    Babangida stated this in a statement to commemorate the 2017 Eld-el-Fitr celebrations and his 76th birthday celebration at the Hilltop, Minna, Niger State.

    His statement in full:

    Nigeria, my dear country, is not a stranger to crisis, nor is she immune to it. In a profound sense, she can be said to have been created out of crisis, a nation state that will continue to strive to subdue and transcend crises.

    In over a century of its formalised colonial architecture, Nigeria has grown and made remarkable progress in the midst of crises. The most tragic and horrendous episode in Nigeria’s history has been the 30 month Civil War of July 1967 to January 1970, in which many of our compatriots lost their lives.

    Indeed, many others also suffered terrible injuries of human and material dimensions. So, who really wants to go through the depth and dimensions of another Civil War in Nigeria again? Who does not know that that Civil War was preceded and started by intolerance and a series of hate pronouncements, hate speeches, hate conducts and actions that were inflicted upon one another by the citizens?

    Today, with a deep sense of nostalgia, I still carry within my body the pains of injury from the Civil War: there is nothing romantic about war; in any form, war is bad, condemnable and must be avoided.

    I need hardly say I am very worried by the current on-going altercations and vituperations of hate across the country by individuals, well-known leaders, religious leaders, group of persons and organisations.

    We need to remind ourselves that conflicts are not evidently the stuff of politics and governance, particularly so of democracy, hence we must apply caution in our utterances, body language and news reportage.

    The management of conflicts is the acid test of maturity, of mutual livelihood and of democratic governance. We cannot and we must not allow the current hate atmosphere to continue to freely pollute our political landscape unchecked.

    Personally, I reject the proceedings of hate and their dissemination and urge my fellow citizens to strongly condemn the scourge and orgy of the current crisis which, in my view, is an outcome of vengeful appetites within the multiple contexts of our democratic governance and the profound inequalities that have distorted our social relations.

    Nonetheless, it is not the place of leaderships to fuel and hype conflicts nor should we allow losers and gainers of our governance regimes to make pronouncements and threats that exploit our ethnic, religious and geopolitical construct.

    Democracy, anywhere in the world, is a work in progress; and one that is subject to constant evolution and debate. The drums of war are easy to beat, but their rhythms are difficult to dance. Starting wars or political upheavals comes with the slightest provocation, but ending them becomes inelastic, almost unending with painful footages of the wrecks of war.

    I have been involved and its ripples are tellingly unpalatable, with gory details of destruction and carnage. I am a Nigerian, a citizen, patriot and concerned stakeholder. It is my strong belief that Nigeria can attain greater greatness if we all nurture our minds in the direction of building a nation and accepting responsibility for its successes and failures.

    We cannot deny or repudiate our progress at nation-building in spite of the limitations and challenges that we have continued to experience. As a people, we need a proper study and understanding of our history in order to correct the warped perceptions of our past so as to minimise the dangers of badly skewed stories of our democratic experience in governance; and to regenerate mutual confidence and uphold the tenets of living together as one country.

    No one government or administration can provide all the answers to the myriad of problems and challenges confronting us as a country; no matter how determined, resolute, committed and motivated such a government is.

    The citizens have their roles to play, and their obligations to fulfil in order to motivate government in achieving its stated goals and objectives. Governance is a function of the leadership and the followership.

    It is a two-way traffic that demands certain responsibilities from those involved. Of late, Nigeria has become so sharply divided with emotions running high on the least provocations. Once tempers are that high, the fault-lines become easily visible and with the slightest prompting, the unexpected can happen. But I want to believe that Nigerians are still their reasonable selves’, highly endowed in various skills and intellectually empowered to compete anywhere in the global arena.

    As a Nigerian, I have had the rare privilege to benefit from robust relationships from different people across the socio-political divide; East, West, North and South. I have also immensely interacted with persons from all the numerous tribes, cultures and ethnic configurations dotted across the entire gamut of Nigeria’s expansive lands.

    I have made friends, built alliances, nurtured relationships and sustained linkages amongst Nigerians of all shades and opinions. In fairness, Nigerians are great people. In those hours, moments and duration of friendship and camaraderie, no one talks about origin, geopolitical zones or even states.

    The issue of religion does not dictate the flow of discourse. We deal with ourselves based on our character and content, and not the sentiments of what part of the country we hail from.

    The inalienable fact that Nigerians can live in any part of the country to pursue their legitimate aspirations is a strong indication that we have accepted to invest in the Nigerian project, and are no longer driven by mutual suspicion but mutual respect.

    That we have not fully realised our potentials as a great nation is not enough reason for us to want to demolish the foundation of our nationhood or rubbish the labours of our heroes past; both of which are borne out of our collective efforts to build a truly great nation, and great people.

    If we have repeatedly done certain things and not getting the desired results, we need to change tactics and approach and renew our commitment. It is our collective responsibilities to engender a reform that would be realistic and in sync with modern best practices. For example, restructuring has become a national appeal as we speak, whose time has come.

    I will strongly advocate for devolution of powers to the extent that more responsibilities be given to the states while the Federal Government is vested with the responsibility to oversee our foreign policy, defence, and economy.

    Even the idea of having Federal Roads in towns and cities has become outdated and urgently needs revisiting. That means we need to tinker with our Constitution to accommodate new thoughts that will strengthen our nationality.

    Restructuring and devolution of powers will certainly not provide all the answers to our developmental challenges; it will help to reposition our mindset as we generate new ideas and initiatives that would make our union worthwhile.

    The talk to have the country restructured means that Nigerians are agreed on our unity in diversity; but that we should strengthen our structures to make the union more functional based on our comparative advantages. Added to this desire is the need to commence the process of having State Police across the states of the Federation.

    This idea was contained in my manifesto in 2010 when I attempted to contest the presidential elections. The initial fears that State Governors will misuse the officers and men of the State Police have become increasingly eliminated with renewed vigour in citizens’ participation in, and confidence to interrogate power.

    We cannot be detained by those fears and allow civilisation to leave us behind. We must as a people with one destiny and common agenda take decisions for the sake of posterity in our shared commitment to launch our country on the path of development and growth.

    Policing has become so sophisticated that we cannot continue to operate our old methods and expect different results.

    I also want to appeal to the Nigeria media to be more circumspect in their news reportage. They should always weigh the security implications of the contents of their news and the screaming headlines that stare us in the face every day, especially at this fragile period of our political emanations.

    The media play an important and remarkable role in shaping the flow of discourse. Their level of influence is also not in doubt, but as the fourth estate of the realm, it has a greater responsibility to moderate public discourse in a manner that will cement inter- and intra-cultural relationships. If Nigeria works, it benefits all her citizens; if it fails, it hurts all her citizens too.

    The media should be patriotic in its present engagements to berth a new Nigeria of our dreams. On a final note, I really wish we see strength, determination, commitment and confidence in our diversities rather than adversities.

    As a heterogeneous country with flourishing skills and numerous endowments, we should dictate the pace in Africa and lead by example of what is possible amongst a people that are focused and determined to pursue a common national goal.

    As a former Military President who had the rare privilege to travel around Africa to sustain the African cooperation through peace-keeping operations, I have come to the conclusion that nations are driven by a common ideal and not by the homogeneity of their race.

    I saw Somalia, such a homogeneous conclave yet one of the most troubled countries in Africa today. I saw South Sudan, which broke away from the old Sudan, but peace and stability have eluded them. Rwanda genocidal experience is not romantic either.

    But a President from the minority ethnic group has repositioned the country to assume its pride of place in the comity of nations. That a people share common identity, language, history, doctrine, culture, mores and values are not synonymous with development, growth, stability and peace.

    When we went into peace-keeping operations in Sierra Leone, Somalia, Liberia and Congo, we had in mind to sustain oneness in Africa even though we are a continent of different countries all bearing different logos and identities. Our motivation was simply that we are Africans.

    I am therefore appealing to the sensibilities of all of us, young and old, leaders and followers, groups and organisations, that in the interest of peace and stability of our country, we need to sheathe the sword.

    At 76, I have seen it all. I have seen war. I have fought war. And I have survived war, even though I still suffer the pains and injuries of war, it is part of the selfless sacrifice to keep the union afloat. We must build a country that is forward looking for our children and future generations of Nigerians.

    We cannot afford to toil with the destinies of the 170million Nigerians by the shape of our discourse and the content of our interaction. We must carry out conscious attitudinal orientation that will change the mindset of our youths and the held beliefs of the elderly. We must explore the therapies of dialogue and constructive engagements in our desire to make life more meaningful for our people. My friends cut across all regions, zones and states. I am proud to be a Nigerian because I see hope in the youthful population of Nigerians.

    I see remarkable skills and raw talents that can stimulate enterprise and innovations. This is the end of the Holy Month of Ramadan, a month in which Muslim faithful have dedicated their lives to seek closeness to God, and forgiveness of their inequalities.

    It is a month of penance; a month of prayer for physical, moral and spiritual rejuvenation, regeneration and rebirth. I urge my countrymen and women to use the occasion to look ahead with hope and renewed dedication to the service of our country.

     

     

  • FG releases breakdown of N516bn Paris Club refunds to states

    FG releases breakdown of N516bn Paris Club refunds to states

    The federal government has finally released a breakdown of the first tranche of Paris Club refunds paid to states to date.

    The payments, totalling N516.38 billion, were made to the 36 states and the Federal Capital Territory upon the approval of President Muhammadu Buhari on November 21 2016, a statement by Salisu Danbatta, director of information in the Ministry of Finance said.

    The payments were in partial settlement of longstanding claims by State Governments relating to over-deductions from their Federation Account Allocation Committee (FAAC) allocation for external debt service arising between 1995 and 2002.

    The debt service deductions are in respect of the Paris Club, London Club and Multilateral debts of the FG and States. While Nigeria reached a final agreement for debt relief with the Paris Club in October 2005, some States had already been overcharged.

    The government had initially turned down repeated requests to release the payment details.

    The funds were released to state governments as part of the wider efforts to stimulate the economy and were specifically designed to support states in meeting salary and other obligations, thereby alleviating the challenges faced by workers,” the statement said.

    The releases were conditional upon a minimum of 50 per cent being applied to the payment of workers’ salaries and pensions.

    The Federal Ministry of Finance said it was reviewing the impact of these releases on the level of arrears owed by State Governments.

    Danbatta explained that a detailed report is being compiled for presentation to the Acting President Yemi Osinbajo, as part of the process for approval for the release of any subsequent tranches.

     

    See breakdown below:

    REFUND OF OVERDEDUCTIONS ON PARIS CLUB LOANS ON THE ACCOUNTS OF STATE AND LOCAL GOVERNMENTS (1995-2002)

    S/No States Amount Received in Naira

    1

    ABIA

    11431531742.97

    2

    ADAMAWA

    10257434321.63

    3

    AKWA IBOM

    25981255165.12

    4

    ANAMBRA

    12243313404.68

    5

    BAUCHI

    13755553122.51

    6

    BAYELSA

    24895696347.55

    7

    BENUE

    13709343498.51

    8

    BORNO

    14681869730.63

    9

    CROSS RIVER

    12150687893.85

    10

    DELTA

    27606963362.46

    11

    EBONYI

    9016166759.96

    12

    EDO

    12182253184.99

    13

    EKITI

    9545673294.17

    14

    ENUGU

    10723578819.32

    15

    GOMBE

    8945755396.38

    16

    IMO

    14001610365.94

    17

    JIGAWA

    14215333413.52

    18

    KADUNA

    15443458455.1

    19

    KANO

    21740390362.48

    20

    KATSINA

    16404261819.71

    21

    KEBBI

    11954998982.9

    22

    KOGI

    12055455191.6

    23

    KWARA

    10241288653.14

    24

    LAGOS

    16743876266.21

    25

    NASARAWA

    9102098342.24

    26

    NIGER

    14421586309.89

    27

    OGUN

    11478749388.92

    28

    ONDO

    14007296628.57

    29

    OSUN

    12628212681.25

    30

    OYO

    13315423054.25

    31

    PLATEAU

    11288158110.82

    32

    RIVERS

    34925785322.06

    33

    SOKOTO

    12882257093.52

    34

    TARABA

    9326607975

    35

    YOBE

    10826206233.18

    36

    ZAMFARA

    10884771188.99

     


    TOTAL

    516384636883.81

     

     

  • Osun receives lowest allocation as FG, States, LGs share N1.4trn in first quarter

    Osun receives lowest allocation as FG, States, LGs share N1.4trn in first quarter

    …as Akwa Ibom, Osun emerge highest and lowest recipients respectively

    The Federal Government, the 36 states and their local government areas have so far shared N1.4 trillion from the federation account, being revenue generated in the first quarter of 2017.

    A breakdown by Federation Account Allocation Committee (FAAC)on Sunday in Abuja, shows that key agencies that remit funds into the federation account are the Nigerian National Petroleum Corporation (NNPC), the Federal Inland Revenue Service and the Nigerian Customs Service.

    The total revenue shared in January between the federal, states and local government was N430.16 billion, meaning that federal took N168 billion, states, N114.28 billion and local government, N85.4 billion.

    The federation grossed in N514 billion in February and federal government’s share was N200.6 billion, states, N128.4 billion and local government, N96.52 billion.

    However, in March, revenue generation dipped lower, grossing N466.9 billion, and from it, the federal government got N180.5 billion, state governments, N116.5 billion and local government, N87.5 billion.

    The allocation was made using the revenue sharing formular, Federal Government, 52.68 per cent; states, 26.72 per cent and local governments 20.60 per cent.

    The report showed that before distribution, state liabilities were deducted.

    The liabilities paid by the states in the first quarter, included an external debt of N8.73 billion, contractual obligations of N30.15 billion and other deductions amounting to N50.23 billion.

    The other deductions, cover National Water Rehabilitation Projects, National Agricultural Technology Support, Payment for Fertiliser, State Water Supply Project, State Agriculture Project and National Fadama Project.

    However, here is what each of the 36 states got in the first quarter after all deductions were made:

    Abia N8.42 billlion, Adamawa N7.8 billion, Akwa Ibom N34.88 billion, Anambra, N8.7 billion, Bauchi, N7.9 billion, Bayelsa, N22.97 billion, Benue, N8.16 billion, Borno, N9.74 billion and Cross River, N4.28 billion.

    Also, Delta got N21.54 billion, Ebonyi, N7.56 billion, Edo, N6.5 billion, Ekiti, N4.97 billion, Enugu, N7.86 billion, Gombe, N6.35 billion, Imo, N7.92 billion, Jigawa, N9.66 billion, Kaduna, N10.56 billion and Kano, N14.02 billion.

    Similarly, Katsina’s share from the federation account in 3 months was N10.05 billion, Kebbi, N8.37 billion, Kogi, N8.28 billion, Kwara, N6.9 billion, Lagos, 19.03 billion, Nassarawa, N7.41 billion and Niger, N9 billion.

    Finally, Ogun state got N4.98 as allocation for first quarter, 2017, Ondo,N10.22 billion, Osun, N1.76 billion, Oyo, N8.9 billion, Plateau, N5.7 billion, Rivers, N26.8 billion, Sokoto, N9.07 billion, Taraba, N6.9 billion, Yobe, N8.33 billion, and Zamfara, N5.91 billion.

    FAAC committee is made up of commissioners for Finance and Accountant-Generals from the 36 states of the federation.

    The Minister of Finance, is the chairman of the committee, while the Accountant-General of the Federation, is next with representatives from the NNPC.

    Other members are representatives from the Federal Inland Revenue Service; the Nigerian Customs Service; Revenue Mobilisation, Allocation and Fiscal Commission as well as the Central Bank of Nigeria.

     

  • FG, States, LGs share N465bn for January 2017 – FAAC

    FG, States, LGs share N465bn for January 2017 – FAAC

     

    The Federation Account Allocation Committee (FAAC) says it shared a total of N465.149 billion for the month of January among the Federal, States and Local Government Councils.

    According to a communique issued by the Technical sub-committee of FAAC, Gross statutory revenue received is N324.990 billion which is higher by N76.275 billion when compared with the N248.635 billion received in the month of December, 2016.

    The shared amount comprised the Month’s Statutory distributable revenue of N282.406 billion, Value Added Tax of N73.522 billion, Exchange gain of N48.371 billion and Excess PPT Account of N60.850 billion.

    There was also a N6.330 billion refund to the Federal Government by Nigerian National Petroleum Corporation (NNPC).

    Therefore, from the Net Statutory revenue, Federal Government received N133.192 billion (52.68%); States received N67.557 billion (26.72%); Local Government Councils received N52.083 billion (20.60%); while the Oil Producing States received N20.620 billion as 13% derivation revenue.

    Furthermore, from the Revenue available from the Value Added Tax (VAT), Federal Government received N10.587 (15%); States received N35.291 billion (50%) while the Local Government Council

    The Communique further explained that there was a revenue increase of $74.91 million in Federation export sales due to a rise in the volume of Crude oil export by 1.490 million barrels and an increase in the average price of Crude Oil from $47.30 to $49.57 per barrel during the period under review.

    However, the Force Majeure declared at Forcados, Qua Iboe and Brass Terminals remained in place.

    Federation revenues increased despite the Force Majeure and the

    Shut-down of pipelines for repairs and maintenance due to leakages and sabotage.

    PPT collection increased significantly while revenues from Companies Income Tax (CIT), Value Added Tax (VAT), Import Duty and Royalty decreased slightly.

     

  • FG, States, LGs share N400bn revenue in January

     

    The Federal, State and Local Governments on Friday shared N400 billion revenue among themselves for the month of January.

    The shared amount is N13.1 billion more than what they shared as revenue in December.

    The Minister of Finance, Mrs Kemi Adeosun, at the monthly Federation Account Allocation Committee, FAAC meeting said the N400 billion was distributed under four sub-heads.

    These are: statutory allocation, where the sum of N224.88 billion was allocated, Value Added Tax N79.27 billion, exchange gain N52.84 billion, and excess Petroleum Profit Tax N42.99 billion.

    After deducting cost of collections to the revenue generating agencies, the Federal Government got N105.76 billion, states N53.64 billion, and local government councils, N41.35 billion.”

    In addition, she said the sum of N15.5 billion was given to the oil producing states, based on the 13 per cent derivation principle.

    For VAT allocation, Adeosun said the Federal Government received N11.4 billion, states N38 billion, while Local Government Councils got N26.63 billion.

    Adeosun said that the Federation generated N145.6 billion as Mineral Revenue and N103.1 billion as non-Mineral revenue, while the excess crude account is 2.45 billion dollars.

    Adeosun said that the force majure Forcados, Qua Iboe and Brass terminals was still impacting negatively on revenue generation.

    Speaking, the Chairman, Forum of Finance Commissioners in Nigeria, Mr Mahmoud Yunusa, said that states were determined to keep improving their internally generated revenue.

    Low federation revenue has become a blessing in disguise to us. Initially almost all the states relied heavily on FAAC.

    But now, because the money is no longer there, it has forced us to look inwards at the opportunities and potentials in our respective states and beginning to explore them.

    We had to look at cutting cost in running governance and blocking all revenue leakages,’’ he said.

  • FG confirms spread of Bird flu to 26 states, FCT

    The Federal Government has confirmed a new strain of Avian Influenza virus, known as bird flu in Nigeria has affected over 3.5 million birds in 26 states and the Federal Capital Territory, Abuja.

    According to the government, in a bid to prevent the entry of the disease into their respective countries, Nigeria’s neighbours have proposed a ban on poultry and poultry products from Nigeria.

    The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, disclosed this in Abuja on Tuesday at a consultative meeting with commissioners for agriculture/livestock, states directors of veterinary services and major stakeholders in the poultry industry.

    Ogbeh explained that the first outbreak of bird flu in Nigeria was reported in 2006 and spanned through 2008, but was controlled and eradicated through concerted efforts facilitated by the availability of resources from a World Bank-sponsored project and support from the country’s development partners.

    In Ogbeh’s words: “The current status of the disease in the country is quite alarming; it has now affected 26 states and the FCT, with over 3.5 million birds culled so far.

    “Recently, a new strain of the bird flu virus (H5N8) was reported in Kano. The new strain is believed to be very pathogenic and more devastating to poultry species and, therefore, it may further add to the burden of the H5N1 strain that is currently circulating in the country.

    “The disease is transboundary in nature and also trade-limiting; some of our neighbouring countries have proposed to ban poultry and poultry products from Nigeria. This may undesirably lead to an egg glut in the country.”

    Ogbeh stated that there were already huge and unacceptable losses in the poultry industry and the nation as a whole, and urged the agriculture commissioners of the various states to retrace their steps in order to provide safe food for Nigerians as well as ensure national self-sufficiency in food production.

    He noted that aside from paucity of funds, other challenges that led to the outbreak of the disease included lack of compliance with on-farm quarantine measures and movement restriction; violation of biosafety measures leading to rapid spread of the disease; and clustering of poultry farmers with limited adherence to hygienic measures.

    Others, according to the minister, are reluctance of poultry farmers to register with the state directors of veterinary services for easy monitoring and regulation; and unregulated activities of egg and manure merchants.

    To help address the challenges, Ogbeh said the Federal Government had provided disease containment materials, reviewed the national emergency preparedness plan on Avian Influenza, enhanced the laboratory diagnostics capacity at the National Veterinary Research Institute in Plateau State, and created awareness and advocacy on the disease.

    He stated that other measures put in place to address the situation were the allocation of quality grains to the Poultry Farmers Association to support its members across the country, and the payment of N707.67m to 276 farmers as compensation.

    “The Federal Government is determined to continue to work with state governments, PAN and other stakeholders in the poultry industry to come up with sustainable measures to prevent, control and eradicate this disease from our country within the shortest time possible. This is the major reason for our meeting here today,” Ogbeh said.