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Delta State Commissioner for Finance, Chief Fidelis Tilijie, yesterday, put the state debt profile at N272 billion.
Tilije, who described the state as the most solvent, explained at a press conference in Asaba that of the amount, N84 billion is for contractors, N27 billion for pension arrears, while the balance is the debt inherited from the previous administration.
He said: “There have been bailouts before we came, there have been series of indebtedness and then, naturally, we needed to carry them out.
“The CBN, at some point in time through the instrumentality of National Economic Council ( NEC), had to freeze the payment of indebtedness that was granted to past administrations because of the COVID-19 pandemic.
”
He said expected refunds remained at N240 billion with respect to 13 per cent derivation, explaining: “Out of this, we have received N14.
7 billion in three quarterly instalments.
”
He said the state also accessed N30 billion from the bridging finance and attempted to approach the market to discount a figure of N150 billion, which is about half of the expected refund.
“We rejigged that process and reduced it to N100 billion.
So, we have received N14.
7 billion and have also accessed N30 billion from the commercial market.
”
The commissioner explained that the state could not clean up the debt profile despite being sure that the refunds from FAAC can do so, but the state had to take a salary bailout of N10 billion when the government came on board.
“The truth is if we are to take the total refunds, we will be putting the successive government into the same trap which Okowa met in 2015.
“So he decided that he will be his brother’s keeper, he will take a percentage of it and leave the other for the incoming government.
” the commissioner explained.
One thing that even the strongest opponents of Governor Seyi Makinde acknowledge is that he has performed as governor.
They may vary in how they rate him, but they can point to projects he has completed, which they envy.
For example, Chief Bayo Adelabu, gubernatorial candidate of the Accord Party, scored Governor Makinde 70% for the Moniya-Ijaiye-Iseyin Road.
For a fact, Governor Seyi Makinde has raised the bar on governance in Oyo State.
One remarkable way he has done this is by deviating from the usual practice of abandoning projects started by one’s predecessor.
Roads such as the 12km Bembo-New Garage-Apata Road (aka Akala Express Way), the 9.
7km Saki Township Road, the 7.
2km Idi-Ape-Basorun-Akobo-Odogbo Baracks Road, the 65kmMoniya-Ijaiye-Iseyin Road, the 65m General Gas Flyover and even the 110km Ibadan Circular Road were all started or abandoned by his predecessors.
Still, he chose to complete them because, in his words, the people of Oyo State must benefit from all infrastructure projects that the state has at any time invested in.
In the same way, facilities that were left moribund or abandoned, some for upwards of 30 years, have been rehabilitated and put to use for the benefit of the Oyo State economy.
One of these projects is Pacesetter Quarry and Asphalt Plant, Ijaiye, conceived by Governor Rashidi Ladoja and abandoned by all his predecessors until Governor Makinde came into office, completed the project, and the people of Oyo State are currently benefiting from its use.
As Governor Makinde has confirmed, asphalt from this plant is being used in road construction in Oyo State.
Another moribund facility that has been rehabilitated is the Oyo State-IITA Youth Agribusiness Incubation Park Centre.
This 210-hectare facility which used to be the Rural Community Development Centre (RCDC), Awe lay moribund.
Today, it has been transformed into a training centre for youths in agribusiness.
Oyo State has collaborated with various development agencies at this facility.
As of the last count, 20 of the 117 beneficiaries of these programmes have gone ahead to establish their agribusiness enterprises, leading to the creation of 700 direct and indirect jobs.
We can also point to rehabilitating the Oyo State Agricultural Development Programme (OYSADEP) Headquarters, now the Oyo State Agribusiness Development Agency (OYSADA) Headquarters at Saki. This is not a headquarters in name only, as most OYSADA staff work out of this facility.
This has brought development to Saki West Local Government Area.
Another facility undergoing rehabilitation is the Fasola Agribusiness Industrial Hub. This is one of the nine moribund farm settlements of over 1,100 hectares.
This massive facility, over 80% completed, hosts residences, farms, processing centres, and other agribusiness facilities, putting Oyo State on the map as the agribusiness destination of Nigeria.
The work in that facility has attracted 15 agro-industries, including Friesland Campina, which will be hosting a calf breeding and livestock pasture development hub there.
Of course, these are not the only moribund facilities that have been rehabilitated.
We have Rontol Foods, presently occupying rehabilitated facilities at the Ilora Farm Settlement.
This is one example of a private-sector-led-public-sector-facilitated project ensuring the use of Oyo State once moribund facilities.
Another is the Equipment Fabrication Centre at Apata, which is now being rehabilitated by Niji Group.
It is important to note that Niji relocated from Lagos State to work in Oyo State.
Last but certainly not least is the upgraded Lekan Salami Sports Complex, Adamasingba.
This FIFA-accredited world-class main bowl has returned international football to Ibadan after almost three decades.
While the Shooting Stars Sports Club (3SC) in Ibadan now have a home stadium to play in.
Let us not forget that Governor Seyi Makinde completed all these in less than four years, with over 11 months lost to the COVID-19 pandemic and the State FAAC at record lows.
Is it any wonder that many have said Governor Seyi Makinde is the best Oyo State has had since 1999?
Anyone with a counter-argument should come forward with the data.
Governor Seyi Makinde has set new standards of governance in Oyo State.
Olamide Olorundare is the Special Assistant New Media to Governor Seyi Makinde.
An economics expert, Dr. Afolabi Olowookere, said oil revenues, in terms of contribution to the federation account, fell from 46.9% in 2017 to 7.4% in the first half of 2022.
Olowookere, the managing director of Analysts Data Services and Resources Ltd., made this known Tuesday in a statement titled "Federation Distribution Performance, Budgeted vs. Actual."
He said that overall, the federation account's share of total distribution had dropped from 81.4% in 2017 to 66.1% in 2022.
Olowookere added that the group's share of Value Added Tax (VAT) rose steadily from 18.6 percent to 33.9 percent during the period.
According to him, the share of oil has been falling and is expected to continue to fall, while VAT has been gaining its share.
“Gas flaring penalty revenue increased from N3.8 billion in 2017 to N98.6 billion in 2021, while contributing N39.2 billion in the first half of 2022.
“Overall, the revenue projection has been much higher than the amount realized on the various components of oil revenue,” he said.
However, Olowookere said that gross profit from crude oil and gas sales performed well above projections, except for 2020 and 2019, with negative variations of 38.1 percent and 62.1 percent, respectively.
He said that apart from 2020, actual oil revenues had been more than 50 percent lower than their budgeted values.
Olowookere added that in terms of contribution, oil and gas gross profit has decreased over time, PPT and gas revenue as well as oil and gas royalties have increased their share.
On the Petroleum Industry Act (PIA) and its implication on federation account revenue, he said that the PIA had the primary objective of restructuring and transforming Nigeria's oil and gas industry.
He listed the key pillars of the PIA as a national grid system for acreage management, oil mining leasing, exploration and prospecting licenses, frontier exploration, and host community development funds.
Others included them as a midstream and downstream gas infrastructure fund, tax on hydrocarbons, tax on company profits, royalties, fines and sanctions.
He said the implications of the PIA on federation account revenue could be examined through a few channels including the establishment of regulatory agencies, multiple agencies and the cost of collection.
He listed other channels such as NNPC Limited and its business operations, Remittances to the Federation Account Allocation Committee (FAAC) vs. Consolidated Revenue Fund (CRF), Newly Created Funds in PIA and FAAC, PIA and New Taxes and PIA on Subsidy made out of fuel.
“If deregulated properly, the elimination of the payment of subsidies implies a higher FAAC and more revenue for the government to provide basic services.
“Despite these provisions, the government still continues to pay subsidies for certain reasons.
“While section 31(d) of the PIA may suggest the removal of subsidies, it is not impossible that the process of providing a price and tariff framework and advice on trade matters will lead to some price controls or reintroduction of subsidies. .
“Sections 32(e), 32(f) and 64(m) can be used to justify the continued payment of the subsidy,” it said.
He stressed that it was imperative to have the courage to remove the subsidy, but it should be done in a way that did not add further burden to citizens who were already stressed due to harsh economic realities.
========Edited
Source Credit: NAN
Mr Victor Chinemere, the Chairman of Fiscal Responsibility Commission (FRC), says the reluctance of MDAs to publish their monthly financial transactions is stalling the commission’s drive to improve fiscal transparency and accountability.
Chinemere made this known in a paper he presented during the Lunch Time Reform Seminar organised by the Bureau of Public Service Reforms (BPSR), on Thursday in Abuja.
The paper is titled ‘Strengthening Fiscal Transparency, Accountability and Prudence through the Fiscal Responsibility Act, 2007.’
He said that the publication of audited financial statements were also routinely ignored or flouted by the federal Ministries, Departments and Agencies (MDAs).
Chinemere explained that the report was part of the provision of the Fiscal Responsibility Act which the MDAs were expected to comply with.
The FRC chairman said although, the publication of daily payment report by the Office of the Accountant General of the Federation (OAGF) has recorded significant compliance since
inception, the MDAs have not been forthcoming.
“It appears that most MDAs have not been forthcoming with up-to-date information on their daily financial transaction on the open treasury portal as required.
“And in a format that would enable ordinary citizens clearly understand what is being displayed.
“ Time limits which are imposed for the performance of obligations under the Act, especially for the disclosure of financial records or publication of audited financial statements are routinely ignored or flouted.
“This partly explains the inability of the government to take necessary and timely fiscal decisions and effectively communicate same to the citizenry,” he said.
The chairman added that Government Financial Transparency Policy Guidelines required all MDAs to publish monthly budget performance reports within seven days of the end of each month.
“ The publication which is a responsibility of both the OAGF and MDAs should detail performance of the budget by various dimensions including functions and economic activities performed by all federal government agencies.
This is largely being disobeyed.
”
Chinemere also expressed concern about the failure of most states and local governments to fully adopt the the Financial Responsibility Act, 2007, even though they take more than 48% of national resources.
“This is a major drawback to the quest for transparency and accountability, bearing in mind that Nigeria operates one economy.
“ Less than 24 states are known to have passed their FRLSs with varying degrees of implementation,” he added.
” It is lamentable that some states are yet to operationalize the Treasury Single Accountant up-till now,” he added, saying that some states were yet to also commit to the Open Government Partnership.
Chinemere, however, said in spite of the challenges,
“there is great improvement in transparency in Federal government ’s fiscal and financial affairs.
These, he said, included “improvement in fullness and timeliness of disclosure and publication of transactions and decisions involving public revenues and expenditure and their implications for its finances.
“Regular publication of monthly financial disbursement to the three tires of government from the Federation Account after successive FAAC meetings.
“The introduction of the Treasury Single Account (TSA) which is a public accounting system whereby all the Federal government receipt, revenue and income are collected into one single account maintained and managed by the Central Bank of Nigeria.
”
According to him, the TSA is meant to promote and enthrone an efficient, centralized, transparent and accountable revenue management system as well as facilitate effective cash management.
The FRC chairman urged the National Assembly to fast track the amendment of the Fiscal Responsibility Act, 2007 to ensure effective performance of the commission.
“The commission’s funding must be increased significantly if it is to effectively deal with violations to the FRA 2007.
“Including those relating to failure to comply with transparency and accountability provisions and to undertake the prosecution of offenders as proposed in the amendment.
”
He said that the commission wants the amendment to include sanction for violations, including prohibiting violators from contesting elections into public office for five years, and fines of up to 30% of annual salary and jail terms ranging from three months to four years.
“Where necessary, the commission will continue to,“name and shame” violators, not just in the media, but by reporting them to the NASS with the hope of curbing and reducing seeming impunity.
”
The chairman added that citizen groups, NGOs, CSOs and other individuals should be sensitized to activate the civil enforcement mechanism set out in Section 51 of the Act.
He said that the section allowed them to seek prerogative orders of the Federal High Court in order to “compel” public officers to comply with transparency and accountability obligations of the Act.
“It is hoped and prayed that the NASS will speed up the FRA, 2007 amendment process in order to produce a more robust legislative instrument for ensuring and enforcing the improvement of fiscal hygiene in Nigeria,” he added.
Chinemere added that passage of the amendment was necessary, as the 2007 Act did not stipulate appropriate sanctions and punishments for offenders.
“This has made it difficult to compel compliance with its provisions and end the current impunity with which its provisions are flouted particularly in the area of transparency and accountability,” he said.
Earlier, the Director General of BPSR, Mr Dasuki Arabi, described accountability as an acceptance of responsibility for honest and ethical conduct towards others.
“As public servants, we are accountable to our stakeholders, employees and the citizens at large; being accountable implies a willingness to be judged on performance.
“The public service is the machinery that hovernment uses to render services to the people and as such, public servants should think of how they can constantly and conveniently improve themselves to give better service.
“The process of rendering these services must conform to the prescribed code of conduct provided by the Constitution.
“Thus, a public officer shall not put himself in a position where his personal interest conflicts with his duties and responsibilities,” he added.
According to him, the Fiscal Responsibility Act 2007 aims to achieve fiscal stability and sustainability, improve fiscal transparency and increase the accountability of the government and the public servants.
“By this Act, it is expected that the public sector would have a definite regulatory structure to act as watch dog on the activities of the public office holders and as checks on financial encroachment between and among tiers of government.
“This is expected to bring sanity and responsiveness into the public sector and among the various tiers of government in Nigeria,” Arabi said.
He added that the aim was also to ensure good governance, macroeconomic stability, commitment to social and economic equity and the promotion of efficient public institutions.
“For economic development and growth to thrive in Nigeria, there must be prudence and accountability in handling public funds, there must be reduction in fraud and improving the transparency in the way public servants work,” he emphasised.
Arabi said that the Bureau’s vision of seeing a Nigeria with a well-functioning, effective and efficient socio-economic system is shared by the vision of the Fiscal Responsibility Commission.
He added that the vision “is to establish a transparent and accountable government management framework for Nigeria”.
NewsSourceCredit: NAN
The National Economic Council (NEC) says it will engage the Central Bank of Nigeria(CBN) and the Minister of Finance, Budget and National Planning on recovery of CBN loans to states.
Gov. David Umahi of Ebonyi State briefed State House correspondents after a virtual NEC meeting presided over by Vice President Yemi Osinbajo on Thursday at the Presidential Villa, Abuja.
Umahi said NEC meeting also featured memorandum for consideration and endorsement of the reviewed National Social Protection Policy ( NSPP) by the Minister of Finance, Budget and National Planning, Zainab Ahmed.
“Council was invited to note the revised NSPP that replaces the 2017-2022 NSPP, which was reviewed in consultation with all states and other stakeholders.
“It is subject to review every five years for updates and accommodation of some of the emerging issues, which include pandemics, insecurity, and responsive social protection.
“The expected benefits of the revised NSPP include reduction of multi-dimensional poverty; promotion of social justice and equity and inclusive growth, reduction of unemployment, social and economic vulnerabilities and other threats to sustainable development.
’’
He said that the council endorsed the presentation and the prayer of the minister.
Umahi said the revised NSPP would be transmitted to the Federal Executive Council for its own endorsement after which it would go to the National Assembly.
The governor said that NEC approved a review of the plan for immediate deduction of funds from state by the CBN.
“The governors are saying with the constant reduction in FAAC allocation to states, it would be very suicidal if the CBN goes ahead to carry out their proposed recovery of state loans.
“ The governors and NEC applauded the president, the vice president, Minister of Finance and the CBN governor for their efforts and commitment to states while noting that a lot of funds that were hidden from the states before the present administration have also been graciously given to states by the president and his team.
“ That has helped the states very much, so while commending them, NEC agreed to engage the CBN governor with the Minister of Finance and the governors forum and the NEC committee.
“ So, it was agreed that these deductions would have to be reviewed to seek other ways; that if it goes ahead, the states would suffocate and that would not be good for the nation; NEC agreed to set up a committee to engage the CBN governor and the finance minister.
’’
On flooding, Umahi said the menace was extensively discussed and NEC offered condolences to those who had lost their lives and sympathy to the families and to the suffering Nigerians.
According to him, the flooding is due to climate change as the council will work towards forestalling future occurrence.
“NEC is commending the president, having met with some governors with regard to this flooding issue.
“ So, NEC agreed to set up a committee to look at the immediate solutions and interventions over the flooding and to see how we take care of those who were affected and states too.
“And also to proffer long-term solutions in line with what the Minister of Water Resources is doing together with the action plan of the president in this regard,’’ he said.
NewsSourceCredit: NAN
The Nasarawa State House of Assembly has summoned two commissioners and state Accountant General to account for some state finances, the News Agency of Nigeria reports.
The invited commissioners are those for Local Government, Community Development and Chieftaincy Affairs, Alhaji Yusuf Turaki; and Finance, Mr Daniel Agyeno, as well as the Accountant General, Mr Zakka Yakubu.
They are to appear before the legislature on Tuesday (Sept. 27) at 10 a.
m. at the assembly chamber.
This, the lawmakers said, was to enable the invitees explain how the State Financial, Transparency, Accountability and Sustainability (SFTAS) Funds, Ecological funds, State Internal Generated Revenue (IGR) and Paris Club fund were recieved and disbursed between the state and local government councils in the state.
Alhaji Ibrahim Abdullahi, the Speaker of the House, invited the government officials after Alhaji Agah Muluku, the Chief Whip of the assembly, moved a motion to that effect under Matters of Urgent Public Importance, at plenary in Lafia on Monday.
Abdullahi said that inviting the government officials was not a witch hunt exercise but to enable them explain vividly how the funds are being used between the state and local governments.
The speaker said that their appearance was also to ensure that the right things are done in order to ensure speedy development at the grassroots.
“I want to appreciate Hon. Muluku and all of you for your positive contributions on this subject matter.
“I have said it severally, that we are all elected to represent our people well at this state assembly.
“The people we are representing will judge us, posterity will judge us and God will judge us based on our actions and inactions, these are judgements that await us.
“In the process of discharging our duties, we will receive condemnations and insults from people who do not understand legislative work and activities.
“We are doing our best to protect the system and let them say what they want to say.
“But how can we allow something that was for local governments to be diverted somewhere, we have to investigate that.
“It is in view of this that we invite the State Commissioner for Local Government, Community Development and Chieftaincy Affairs; the Commissioner for Finance; and Accountant General to appear before us on Sept. 27, by 10 a.
m at the chamber,” he said.
Abdullahi said that the assembly has passed a law on how state finances should be disbursed amongst the tiers of government in the state, especially the LG law and “we will not sit and watch the abuse of the laws passed by this Honourable House”.
The speaker assured the state government of continued partnership for the good of the state and people, stressing that the House in doing that will not support what will be detrimental to the development and the lives of the people of the state especially those at the grassroots.
In their contributions, Messers Mohammed Okpoku, Daniel Ogazi and David Maiyaki lamented on how lack of finances at the local government level has affected development at the grassroots.
They said that, if urgent steps are not taken, the aim of establishing local government would be defeated.
They also decried how chairmen of local government councils and Overseers of development areas cannot execute projects and perform their duties effectively due to lack of funds at their disposal.
Earlier, the Chief Whip of the House raised the issue for lack of physical development at the local government level under matters of public interest.
He said that there was the need for those involved in managing government funds to explain how State Financial, Transparency, Accountability and Sustainability (SFTAS) Funds, Ecological fund, Internally Generated Revenue (IGR) and Paris Club were received and utilised by the tiers of government in the state.
“What I want to raise has to do with lack of development in the local government and development areas in the state.
“There is no development at the local government level.
FAAC is being received every month, there is State Financial, Transparency, Accountability and Sustainability (SFTAS) Funds,
“We have over N400 million Ecological fund, but as I am talking no kobo was given to the local government to address ecological problems in their areas.
“The state government by law is supposed to give local governments 10 per cent of its IGR but we learnt that they are not giving.
“How can local government develop without finances, if actually, we want development at the local government there is the need to invite those involved in managing government resources and activities to appear before us to explain why there is no development at the grassroots,” Muluku said.
NewsSourceCredit: NAN
A university student, Soohemba Aker, has prayed a Federal High Court, Abuja for an order of interlocutory injunction suspending the activities of Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).
Aker, a final year Law student of Benue State University, Markudi, also sought same order suspending the operation of Federal Account Allocation Committee (FAAC), including payment of the monthly allocation funds to 3rd, 4th, 5th, 8th, 9th and 10th respondents pending the hearing and determination of the suit.
The News Agency of Nigeria reports that RMAFC is responsible for advising federal and state governments on fiscal efficiency and methods by which their revenue can be increased and determines remuneration packages of political office holders.
NAN also reports that FAAC ensures that resources are distributed among the beneficiaries of the Federation Account in accordance with constitutional provisions and uphold the interpretations by the Supreme Court on areas requiring such clarification.
The Senate President, House of Representatives Speaker and Governor of Abia (also sued in his own official capacity and in representative capacity for all the other governors of the 36 states of the federation) are 3rd to 5th respondents respectively.
The Attorney-General of Federation (AGF) and Minister of Justice, the Attorney General of Abia (also sued in representative capacity for all the other Attorney Generals of the 36 states of the federation); the Vice Chancellor(VC) of the University of Abuja (also sued in representative capacity for all the other vice chancellors and the members of the Senate of both federal and state universities currently participating in the ongoing ASUU Strike) are 8th to 10th respondents respectively.
The student, in a fundamental rights enforcement suit marked: 16842022 and filed by her lawyer, Chukwuma-Machukwu Ume, SAN, had, in addition, sued the Federal Government, Registered Trustees of the Academic Staff Union of Universities (ASUU) as 1st and 2nd respondents.
She also sued RMAFC, FAAC and Umar Faruk (President, National Association of Nigerian Students, NANS) as 6th, 7th and 11th respondents respectively.
The applicant, who said she is currently affected by the ongoing strike, filed the action for herself on behalf of all students of public tertiary institutions currently affected by the nationwide ASUU strike.
The case was filed pursuant to Sections 46(1), (2) and (3) of the 1999 Constitution and Article 17(1) of the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act Chapter A9 (Charter 10 LFN 1990) No. 2 of 1983.
In the application, Aker prayed the court for an order stopping the payment of salaries, allowances and other benefits of all political office holders at the Presidency of the Federal Republic of Nigeria, including the chief of staff to the president, all Senate and House of Representatives members.
She also urged the court to stop salaries and allowances of all ministers, permanent secretaries, head of parastatals and extra-ministerial bodies, all VCs of striking universities, as well as the salaries and allowances of members of Senate of said striking universities, salaries and allowances of all members of ASUU pending the hearing and final determination of the motion on notice.
She equally sought an order of mandamus compelling the defendants including members of Senate of the striking universities to return to the 1st respondent (FG) their monthly salaries, allowances and other benefits received individually or collectively from the day the industrial action of the 2nd respondent (ASUU) commenced till date, pending the hearing and determination of the originating motion.
In a supporting affidavit deposed to, Aker averred that the strike has continue to affect her adversely as her plans of graduating this academic year 2022 and to apply for admissions into the Nigerian Law School had been thwarted.
She said that her tuition fees paid for the academic year will go in vain as the academic year is almost lost if nothing is done.
She stated further that her dreams of becoming a law graduate and a future lawyer are at the verge of collapsing as her sponsor had made it clear that this year was the last year to sponsor her in school, among others.
The matter is yet to be assigned to a judge.
NewsSourceCredit: NAN
The House of Representatives, has constituted an Ad-hoc Committee to investigate the Petroleum Products Subsidy regime between 2017 and 2021 by the Nigerian National Petroleum Company (NNPC).
This followed the adoption of a motion by Rep. Sergius Ogun (PDP-Edo), on the floor of the House on Wednesday in Abuja.
In his motion, Ogun said he was informed that as of 2002, the NNPC purchased crude oil at international market prices, which stood at 445,000 barrels per day.
He added that it was to enable it provide petroleum products for local consumption, saying he was concerned that as of 2002, the installed capacity of Nigeria’s local refineries stood at 445,000 barrels per day.
He, however, said that their capacity utilisation began to nosedive, and eventually fell completely to zero, due to the ineffectiveness and alleged corruption of critical stakeholders in the value chain.
The lawmaker said that due to decline in the production capacity of the refineries, NNPC found it more convenient to export domestic crude, in exchange for petroleum products on trade by barter basis.
According to him, the component cost in petroleum products subsidy value chain claim by the NNPC, is highly over-bloated.
Ogun claimed that the transferred pump price per litre, used by the NNPC in relation to PPMC, was under quoted as N123-N128 instead of N162-N165
He said that the fraudulent under-reporting of N37-N39 per litre, which translated into more than N70 billion a month, or N840 billion naira a year.
Ogun expressed worry that the consumption rate of Petroleum Motor Spirit (PMS), was 40 million to 45million litres per day, adding that the NNPC used 65 million to 100 million litres per day.
This, he said was to determine subsidy as discoverable from NNPC monthly reports to the Federal Allocation Committee (FAAC).
According to him, the subsidy regime has been unscrupulously used by the NNPC and other critical stakeholders to subvert the nation’s crude oil revenue to the tune of more than 10 billion dollars.
Ogun said records showed that as at 2021, over seven billion dollars of 120 million barrels was diverted.
He also alleged that there was evidence that subsidy amounts were being duplicated.
The lawmaker added that subsidy was charged against petroleum products sales in the books of NNPC, as well as against crude oil revenue in the books of NAPIMS, to the tune of more than N2 trillion.
NewsSourceCredit: NAN
Gov. Chukwuma Soludo of Anambra has warned that states may no longer pay their basic bills if they don’t move away from FAAC-based revenue to agriculture driven economy.
Soludo, an erudite economist, said this at a parley in Awka on the occasion of his 100 days in office.
He said the larger Nigerian economy was facing dwindling fortune due to non contribution of the petroleum revenue, noting that the development was having negative effect on revenue accruing to states.
“Since February this year, the share of oil in the revenue that comes to the Federal Government and States is zero, I saw the table, zero contribution from oil.
“What we share now is revenue from customs duties, VAT and company tax and most states can not pay salary because there is no oil money,” he said.
Soludo said his administration was already embarking on an aggressive agriculture-based economy.
He recalled that the old Eastern Region experienced the highest economic prosperity when it was dependent on revenue from only palm oil.
The Economist said Anambra had decided that on a permanent empowerment programme, it would give people palm and or coconut seedlings which they could start harvesting and making money in a maximum period of five years.
“This is why we say we are going back to where Late M.I. Okpara stopped; he built Eastern Nigeria with money from palm oil.
“Cities of Onitsha with the Main Market; Enugu, University of Nigeria, Nsukka; Port Harcourt, Calabar, Aba and the rest were built with palm; they were well planned with pipe borne water and electricity.
“But all these were abandoned with the discovery of crude oil and revenue from it, but there is enormous room to maximise our potential in Palm production.
“Malaysia came to Eastern Nigeria to collect samples of palm but today, their export of palm is far more than Nigeria is exporting in crude oil and today, we go to Malaysia to get improved seedlings that mature between 4-5 years.
“A household that gets about 30 or 40 seedlings is out of poverty permanently; so the government wants to plant about one million seedlings every year for the next 10 years and if we achieve that, it will give us more revenue than FAAC and IGR,” he said.
Soludo said the state would not borrow for consumption but would continue to take salary as given, noting that local government and state civil servant retirees were owed N14 billion and N7.6 billion in gratuity.
“We will also ensure that pensioners who retired since 2018 are paid their gratuities.”
NewsSourceCredit: NAN
Borno Governor Babagana Zulum on Tuesday presented a N267 billion budget for 2022 to the state House of Assembly for approval.
Introducing the budget labeled a "hope budget for post-conflict stability," Zulum said it was made up of N172 billion of capital expenditures and N95 billion of recurring expenses.
He said the budget aimed to accelerate the ongoing reconstruction of destroyed communities for the safe and dignified resettlement of internally displaced persons (IDPs), as well as the provision of livelihoods and social support to people.
"The budget will be funded by N113 billion anticipated recurring revenue from FAAC allocation and IGR increase, and N154 billion capital inflows from loans and grants," he said.
Zulum said the government plans to establish new technical schools, rebuild and reopen some schools destroyed by insurgents in 2022.
"We will also establish Centers of Excellence that will involve identifying two existing high schools in each of the three senatorial zones of the state and transforming the six schools to meet international standards," he said.
Mr. Zulum also announced the allocation of N22.9 billion to Obras, for the construction of a series of highways in the state.
YAYA
