Why State Governments Are Not Self-Sufficient – Osinbajo

 

Vice President, Yemi Osinbajo has explained the reason why some state governments have remained dependent and not self-sufficient.

According to him, this is because they greatly depend on federal allocation and if this is stopped, the states would be able to pull their weight.

Osinbajo disclosed this during a lecture at the National Defence College Course 28 in Abuja.

“The reason why state governments are not generating as much as they should is because there is something coming from the Federal government every month.

“If there was nothing coming from the Federal Government, states could put their weight. If the Federal government itself does not generate oil revenues, we will pull our weight.

“This is why there is a need to ensure that we hold ourselves to account for revenue generation. A country of this size, certain, can do far more than we are generating at the moment,” he said.

Osinbajo also explained that there is a fundamental link between national security and economic security and that it is the responsibility of the government to create social and economic opportunities and an enabling environment for citizens to thrive.

He also agreed that there is a need to overhaul the national youth service scheme to better serve the nation’s needs.

FAAC: Avoid Sharing All Proceeds From Federation Account, CBN Tells FG

 

The Federal Government has been asked to caution the rate at which all the proceeds from the Federal allocation are being shared across all tiers of government.

This is according to the Monetary Policy Committee (MPC) of the Central Bank of Nigeria who disclosed this on Friday at the apex bank’s headquarters in Abuja.

The committee headed by the governor of the apex bank, Godwin Emefiele, called on the fiscal authorities to ensure that they build cushions that will help reduce the rising public debt.

READ ALSO: CBN Retains MPR At 13.5 Percent, Raises CRR To 27.5

The MPC noted that the rate at which public debt was rising faster than both domestic and external revenue is a major concern that the fiscal authorities should strongly consider.

“The MPC, however, cautioned that public debt was rising faster than both domestic and external revenue, noting the need to tread cautiously in interpreting the debt to GDP ratio.

“The Committee also noted the rising burden of debt services and urged the Fiscal Authorities to strongly consider building buffers by not sharing all the proceeds from the Federation Account at the monthly FAAC meetings to avert a macroeconomic downturn, in the event of an oil price shock.”

The committee noted that the reliance on oil should gradually reduce and the Federal Government should ensure that the cost of governance is reduced.

“Government to gradually reduce reliance on oil receipts and focus on revenue diversification through reforms of the tax system.

“The Committee also called on Government to rationalize fiscal expenditure towards reducing the current excessively high cost of governance.”

In December 2019, a total of N716.298 billion was shared between the Federal Government, States, and Local Government Councils.

According to the Deputy Director, Press and Public Relations, Federation Accounts Allocation Committee (FAAC), Henshaw Ogubike, the total sum comprised revenue from Value Added Tax (VAT), Exchange Gain and the Statutory Revenue.

Ogubike stated that as of January 15, 2020, the balance in the Excess Crude Account (ECA) was $324.968 million.

FAAC Shares N716.2bn To FG, States And LG’s For December 2019

EFCC Discovers 49m Naira At Kaduna Airport

 

The Federation Accounts Allocation Committee (FAAC) has shared a sum total of N716.298 billion to the Federal Government, States and Local Government Councils for December 2019.

A statement by the Deputy Director, Press and Public Relations, Henshaw Ogubike, said the total sum comprised revenue from Value Added Tax (VAT), Exchange Gain and the Statutory Revenue.

READ ALSO: FG To Ban Foreign Vessels From Operating In Nigeria

It stated that from the total revenue, the Federal Government received N287.929 billion, the State Governments received N191.302 billion, and the Local Government Councils received N143.698 billion.

Oil Producing States received N50.279 billion as 13 percent derivation revenue and the Revenue Generating Agencies received N43.089 billion as the cost of revenue collection.

“A breakdown of the distribution showed that from the gross statutory revenue of N600.314 billion, the Federal Government received N271.361 billion, the State Governments received N137.638 billion, the Local Government Councils received N106.113 billion, the Oil Producing States received N50.149 billion as 13% derivation revenue and the Revenue Collecting Agencies received N35.053 billion as cost of collection.

“From the Value Added Tax (VAT) revenue of N114.806, the Federal Government received N16.015 billion, the State Governments received N53.386 billion, the Local Government Councils received N37.369 billion and the Revenue Generating Agencies received N8.036 billion as cost of revenue collection.”

The statement added that in December 2019, there were significant increases in revenues from Companies Income Tax(CIT), Value Added Tax (VAT) Oil and Gas Royalties and Petroleum Profit Tax (PPT), while import duty increased marginally.

Meanwhile, as of January 15, 2020, the balance in the Excess Crude Account (ECA) was $324.968 million.

FAAC: FG, States And LGs Share N635.8bn For November

 

The Federal Government, States and Local Government Councils have shared a sum total of N635.826 billion as federal allocation for the month of November 2019.

A statement by the Director of Information, Federal Ministry of Finance, Budget and National Planning, Hassan Dodo, said that the allocation is inclusive of Value Added Tax (VAT), Exchange Gain and Forex Equalization.

READ ALSO: Food Prices Drove Nigeria’s Inflation Rate To 11.85 Percent In November

Giving a breakdown, Mr Dodo revealed that “FG received N267.883 billion, representing 52.68 percent, the States received N172.569 billion representing 26.72 percent, Local Government Councils got N129.972 billion, representing 20.60%, while the oil-producing states received N49.124 billion as 13 percent derivation mineral revenue; adding that the cost of collection/Transfers/ FIRS refund was N16.277 billion.

“The Federal Account Allocation Committee (FAAC), indicated that the Gross Revenue available from the Value Added Tax (VAT) for November 2019 was N90.166 billion as against the N104.910 billion distributed in the previous month of October 2019, resulting in a decrease of N14.744 billion.”

He stated that the distributed Statutory Revenue received for the month of November was N491.875 billion, lower than the N596.041billion received in the previous month.

“Revenues from Value Added Tax (VAT), Companies Income Tax (CIT), Royalties, Import duty, Petroleum Profit Tax (PPT) all decreased significantly, while Excess duty increased marginally.

“The total revenue distributable for the current month (including VAT, Exchange Gain and Forex Equalization) according to the committee is N635.826 billion, adding that as at November 19th, 2019, the Excess Crude Account (ECA) is $324.968 million.”

Oyo State Receives 7.2b Naira Paris Club Deduction Funds

Abiola Ajimobi, Oyo State, Paris Club The Oyo State Government has confirmed the receipt of 7.2 billion naira as its share of the Paris Club over-deduction funds.

The government said the feat was achieved after spirited efforts by the State Governor, Senator Abiola Ajimobi.

The government said that 60% of the funds collected has been added to the Federal Allocation to the state to pay salaries of workers for the months of August and September 2016.

The state’s Commissioner for Information, Culture and Tourism, Mr Toye Arulogun, made the disclosure on Wednesday during a media briefing.

Mr Arulogun explained that the funds did not come out fortuitously, but came out due to the doggedness, determination and tenacity of Governor Ajimobi in spite of the initial exclusion of Oyo State on the list of the beneficiaries.

He noted that the state government had announced in December 2016 and reiterated in early January 2017 that the state was excluded from the initial beneficiary states of Paris Club Over Deduction Funds.

The Commissioner added that the Governor had reassured the people of the state at different fora that he would work round the clock to ensure the state gets its share.

“The efforts of Governor Abiola Ajimobi have yielded fruitful results. We will all remember that Oyo State was initially excluded from the states that benefitted from the Paris Club over-deduction funds.

“The Federal Government claimed that the previous administration had already collected the state’s share.

“However, Governor Ajimobi was not at peace with the development and swung into action to ensure that the state was included on the list.

“The Governor therefore mandated the Ministry of Finance to reconcile accounts with the Federal Ministry of Finance, Abuja.

“The results of the reconciliation and the Governor’s spirited efforts led to the payment of 7.2 billion naira to Oyo State.

“We have used 60% of the funds received to pay salaries as promised by the Governor during the interfaith service of the Oyo State Government held on January 3, 2017.

“Oyo State appreciates the cooperation of the Minister and Federal Ministry of Finance officials who facilitated the payment that has brought some degree of succour to workers in the state and will enable government deliver some more projects as dividends of democracy,” Arulogun said.

Niger State Governor Orders Payment Of LG Workers

Sani-Bello-Niger--WorkersNiger State Governor, Sani Bello, has directed the immediate release of March salary to the staff of local government councils in the state.

He hinged the delay in payment on the ongoing verification of the entire workforce on the Niger State government payroll and that of the 25 local government councils of the state.

The Governor gave the directive on Wednesday when he paid an unscheduled inspection to the venue of the ongoing verification exercise of local government staff at the Justice Idris Legbo Kutigi International Conference Centre in Minna.

Majority of the council workers said that they were not opposed to the staff audit but expressed displeasure at suffering being experienced in the conduct of the exercise.

Moved by the plight of the workers who came from afar for the exercise, Governor Bello directed the release of the salaries of the council workers immediately, in order to ease hardship on their families.

“I want to appeal to you all to be patient, I have directed the release of everybody’s money (March Salary) and you people should go back to your councils,” he said.

The Governor noted that government was not unmindful of the hardship experienced by the civil servant, insisting that the verification must be carried out so as to fish out ghost worker in the system.

“I wish to assure every one of you that the verification exercise was not a punitive measure targeted at anybody (but) the staff audit is a necessity.

“You all can bear with us that since the inception of this administration, we have always paid workers as and when due but we need to get our figures right, hence this exercise,” he added.

Justifying the staff audit, Governor Bello lamented that the revenue accrued to the state from the Federation Account could not accommodate the wage bill of the state.

“We have a very high wage bill we cannot accommodate. This month (March) alone, the whole money we got from (the) Federal Government is 2.69 billion Naira and our wage bill is N2.4 billion. We have to borrow over 400 million Naira from the bank, so, the verification must continue,” he said.

He pleaded with the council workers to exercise patience and told them that the verification exercise would be rested for a while to enable government fine-tune some identified lapses in the exercise and continue it in a more organised manner.

Oyo Govt. To Pay Salaries With Federal Allocation

Oyo LabourOyo State government and the labour union have reached a mutually acceptable agreement over unpaid salaries of workers.

Both parties arrived at a satisfactory decision after three days of meetings and consultations between various arms of government and Labour.

The leadership of the Nigeria Labour Congress (NLC), Oyo State chapter, Waheed Olojede, made the disclosure after the meeting.

Mr Olojede said that the government has agreed that all its Federal Allocation would hereafter be devoted to payment of workers’ salaries.

Regretting the information gap that led to the seven-day ultimatum issued by labour, he hinted that the meeting resolved that a joint revenue mobilisation committee of labour and government would begin to drive, monitor and share any increase in Oyo State’s Internally Generated Revenues (IGR) between workers and government.

The Oyo State Governor, Abiola Ajimobi, had earlier described the ultimatum as illegal and that any strike would be met with a stiff penalty of ‘no work no pay’, insisting that Labour was aware of the fact on ground.

He had also secured a two-year suspension for debt relief in order to jack up Federal Allocation to the state, maintaining that workers should re-commit to devising ways of not just improving IGR but doing so significantly and consistently.

Okorocha Presents 102bn Naira 2016 Budget

BudgetGovernor Rochas Okorocha State has presented a 102-billion-Naira budget proposal for the 2016 fiscal year before the Imo State House for Assembly.

The Governor made the budget presentation on Tuesday at the hallow chamber in Owerri, the capital of Imo State in southeast Nigeria.

Governor Okorocha explained that the budget, which was tagged ‘Budget of Consolidation and Continuity’, showed that 43.1 per cent of the total budget was proposed for capital expenditure while 56.9 per cent was proposed for recurrent expenditure.

He disclosed that the budget targeted 23 billion Naira from the Imo State’s share of the Federal Allocation, 17 billion Naira from Internally Generated Revenue (IGR) and 148 billion Naira from Excess Crude Oil among others.

The former presidential candidate hinted that the budget was anchored on free and qualitative education from primary to tertiary level, rapid industrialisation, efficient healthcare delivery, agricultural development.

He added that the budget would also concentrate on infrastructure development and substantial provision, saying it would be channelled towards the completion of all ongoing projects while new projects of high priority would also receive attention in line with the state’s medium term expenditure framework.

Governor Okorocha maintained that the Budget performance was affected by the sharp drop in allocation from the Federation Account, which adversely affected the revenue profile of Imo State during the period, stressing that the 2016 budget was 39 billion Naira lesser than that of 2015.

Governor Ahmed Explains Rationale Behind 20bn Naira Bond

Kstate governor AHmedThe Kwara State Governor, Abdulfatah Ahmed, has held a meeting with various stakeholders in the state explaining the reason behind plans to obtain 20 billion Naira bond from the capital market.

The meeting, which was held at the Banquet Hall, opposite Government House, was attended by labour leaders, artisans and professional bodies.

The Governor explained that since the monthly Federal Allocation to the state had dropped from over 3.2 billion to 1.8 billion Naira, the state had no option than to approach the market to meet the needs of the people.

According to the Governor, the projects earmarked for the bond covers all sectors of the economy.

Governor Ahmed also said that second overhead bridge, construction of schools, roads and healthcare centres would also be executed from the bond.

He assured residents of the state that the bond would be repaid from the Internally Generated Revenue for the period of seven years and appealed for their understanding.

The opposition Peoples Democratic Party in the state had earlier disagreed with the plan of the state government to obtain the bond.

It described the plan as an attempt to further impoverish the people of the state.

Nasarawa Police Promise Effective Policing Despite Removal Of Checkpoints

CheckpointsThe Nasarawa State Police Commissioner, Mr Musa Mohammed, says a community approach has been introduced in place of checkpoints to prevent breakdown of law and order.

This comes as mixed reactions continue to trail the removal of military and Police checkpoints with resumed violent activities across the country.

The Police boss advised Nigerians to be patient and provide useful information as it is dealing with the effect of that order.

While some motorists say the removal of the checkpoints is a source of relief from traffic snarl, they also suggested that it may be responsible for increased bombings across the northern states.

Nigeria has recorded increased violent activities by members of the Boko Haram sect following their sacking from the Sambisa forest, and the surge has coincided with the removal of military check points to halt their movement.

In Nasarawa State, military checkpoints have been restored at Uke in Karu council area as well as Keffi bridge. The Akwanga checkpoint has not been restored.

Al-Makura Introduces Levy To Save Funds For Nasarawa Development

Al-Makura Introduces Levy To Save Funds For Nasarawa DevelopmentNasarawa State Governor has introduced a development levy to be deducted from all salary earners, including civil servants as Local Government resort to paying salaries in percentages.

Speaking on behalf of his counterparts, Chairman of Lafia Local Government, Suleiman Wambei, said that they resorted to paying salary in percentages, as they could no longer continue with bank overdrafts to augment the dwindling Federal Allocation.

Governor Tanko Al-Makura, however, made the revelation while receiving the 20-Man Transition Appraisal Committee report on Saturday at the Government House in Lafia, the Nasarawa State’s capital, north-central Nigeria.

The report identified high wage bill of the state as one of the major challenges facing Local Government administration in the state.

It also pointed out insecurity as another foremost challenge which the Governor quickly moved to address by introducing the development levy.

According to Governor Al-Makura, the tax was to save funds for development of the state and curb borrowing to augment Local Government staff and civil servant salaries who constitute about 1% of the state population.

Kwara Govt. Sets Up Committee To Verify Claims of Christian Marginalization

The Kwara State Government has set up a committee to look into claims of marginalization by the state branch of the Christian Association of Nigeria, CAN.

This is in response to allegations by the organization that Christians in the State Civil Service are less favoured in the area of appointments, promotion and transfer.

Members of C.A.N. had earlier complained to the State Government, forcing several meetings with the organization.

The seven-member fact-finding committee inaugurated by the Deputy Governor, Peter Kizira, has been asked to look into the alleged favoritism in deployment of staff in the State Civil Service.

The committee has as members; the former Head of Service, HOS, in the state, Alhaji Yusuf Kawu Daibu as Chairman, while Mrs. Modupe Oluwole will serve as the secretary along with five others as members.