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Kwara Assembly Recommends Suspension Of 16 LG Chairmen

Speaker, Kwara State House of Assembly, Salihu Danladi

The Kwara State House of Assembly has recommended the suspension of 16 Local Government council chairmen over alleged embezzlement of N33 billion.

This followed a resolution of the House after it considered a petition written by one Seidu Aliyu and presented at plenary on Monday.

The House leader, Abubakar Olawoyin, tabled the petition, which was unanimously considered after a debate, prompting the lawmakers to recommend the suspension of the local government councils.

According to the petitioner, the council chairmen had mismanaged and misappropriated the said sum received from the Federation Accounts in the last two years.

Subsequently, the House leader called for a thorough investigation of the council chairmen in view of the alleged misconduct.

In his submission, a member representing Ipaye/Malete/Oloru constituency, Babatunde Paku, said the House had been inundated with reports over alleged fraudulent activities in the third tier of government in the last two years.

Similarly, another member from Afon constituency, Abdulwahab Opakunle, urged the House to look into the matter critically since the lawmakers represent the interest of the people.

Also speaking, a member representing Ojomu/Balogun constituency of Offa Local Government Area, Saheed Popoola, said there was a need to properly investigate the alleged financial impropriety against the council authorities, adding that local government chairmen are public officers, and thus accountable to the people.

Salaudeen Ganiyu of Omupo constituency moved a motion for the suspension of the council chairmen pending the outcome of the investigation and was seconded by Awolola Olumide of Isin constituency.

Reading the resolution, the Speaker, Salihu Danladi, urged Governor Abdulrahman Abdulrazaq to suspend all the local government chairmen in the state to allow proper investigation of their alleged mismanagement of council funds in the last two years.

He referred the petition to the joint house committees on Local Government and Chieftaincy Affairs and Ethics, Privileges and Judiciary, asking the committees to report back in the next two weeks.

Meanwhile, the House has announced the composition of its various standing committees.

The speaker, who made the announcement at the plenary, said the committees would be formally inaugurated in due course.

He challenged the committees to exhibit dedication and commitment while carrying out their assignments.

FAAC: Monthly Allocation Increases By 13 Billion Naira

The federal allocation committee says monthly allocation to the three tiers of government has increased by 13 billion naira from the month of December, 2016.

Speaking with journalists after the monthly Federation Account Allocation Committee (FAAC) meeting in Abuja, the Minister of Finance, Mrs Kemi Adeosun, said that a total of 400 billion naira has been disbursed to the federal, state and local government level for the month of December.

Mrs Adeosun said that the sum of 248 billion naira gross statutory revenue received, is higher by 8 billion naira compared with the 240 billion naira received in the month of November, 2016.

The Minister further explained that there was a revenue decline of 65 million dollars in federation export sales due to a drop in the volume of crude oil export of 1.390 million barrels.

Bayelsa Govt. Declares 3.5bn Naira As Unspent Funds

The Bayelsa State government has disclosed that it has unspent funds of 3.5 billion naira as at the end of November 2016.

Deputy Governor of the State, Mr John Jonah, noted that the said amount has brought to an end five months of deficit.

Mr Jonah made the remarks on Thursday during a monthly transparency media briefing at the Government House in Yenegoa, the state’s capital.

He also revealed that Bayelsa State recorded 160.4 million naira deficit balance in October.

The Deputy Governor said the government got refunds from the bond loan of 4.75 billion naira, as well as 97.67 million naira refunds from local government which increased the amount available for spending to 14.7 billion naira.

Jonah said the state received 11.6 billion naira as gross inflow from the Federation Account.

Bayelsa Launches Website To Aid Financial Transparency

The Deputy Governor of Bayelsa State, Rear Admiral John Jonah, has dispelled rumours in the state that Bayelsa State got the sum of 19 billion Naira from the federation account for the month of July.

He revealed that the exact amount available for spending in the state after all the deductions is N3,502,822,482.66.

According to him, because of the harsh economic situation the state is currently undergoing that has led to civil servants receiving half of their monthly salary, some persons who he described as mischief makers have seized the opportunity to misinform the public.

He said “While we acknowledge that there has been a sharp increase from the latest allocation as compared to previous months especially for this year, we want to for the benefit of hindsight make public the authentic details of the amount from the various sources.”

He provided a breakdown of the declared figures as follows:

SOURCE AMOUNT

Statutory Allocation N2, 310,274,788.13
13 percent derivation N3, 126,869,735.56
Value Added Tax N609, 108,530.22
Exchange Gain N1, 189,970,982.76

GROSS TOTAL N7, 236,224,036.67

FAAC Deductions N2, 308, 843,297.75
Net FAAC Receipt N4, 927,380,738.92
Local Debt Service N1, 424,558,256.26

NET TOTAL N3, 502,822,482.66 .

To ensure absolute transparency in the financial activities of the state a website was launched.

The website is www.bayelsawatch.org.

NEITI Says NNPC Yet To Remit $3.8bn To Federation Account

An audit report by the Nigeria Extractive Industries and Transparency Initiative (NEITI) is accusing the Nigerian National Petroleum Corporation (NNPC) of refusing to remit 3.8billion dollar and 358.3billion Naira to the federation in 2013.

The Minister of Solid Minerals and Chairman of the NEITI board, Dr. Kayode Fayemi, said that the audit showed that total revenue flows into the federation account from the oil and gas sector in 2013 was about $58.07 billion.

This represents about 8% decline when compared to the $62.9 billion realised in 2012.

Fayemi said that the decline was attributed to the drop in oil and gas sales following divestment of federation equity in some oil mining leases (OMLs), crude oil losses as a result of destruction of production facilities, pipelines vandalism and crude oil theft.

NNPC Releases March 2016 Report

Nigeria’s state oil corporation, the NNPC has released its March 2016 report.

The report shows annual operating deficit down 32% to three billion naira in January 2016, and expenditure also slimmer at 134.4 billion naira in January from 196.2 billion naira in December last year.

The new report shows the NNPC revenue down to 130.8 billion naira in January this year due to low crude prices.

The corporation says the sum of 85.9 billion naira was paid into the federation account and for the 12 months ended January 2016, the total contribution to the federal government was 1.05 trillion naira.

In December 2015, the NNPC reports total crude oil lifting of 65.95 million barrels by the corporation, the joint venture partners and independent operators.

Governor Bello Presents 74.7 Billion Naira Budget For 2016

Niger State Governor, Mr Abubakar Bello, on Thursday presented a total budget proposal of 74.7 billion Naira to the State House of Assembly for the 2016 fiscal year.

The Governor, who highlighted the fall in oil price, claimed it had huge negative impact on the economy of the state.

“We are all aware of the effect of the continuous fall in the price of crude oil in the international market and its negative impact on the economy of the country and the States that depend heavily on allocation from the Federation Account,” he said.

While presenting the budget to the members of the House of Assembly, Governor Bello said that the budget was prepared to restore the confidence of the people, even as education had the highest budget estimate.

He further said that the budget which comprises of a proposed recurrent expenditure of 39,501,796,081 Naira, capital expenditure of 242,355,052 Naira, would be financed through Statutory Allocation of 35,792,212,748 Naira, Value Added Tax (VAT) of 9,871,299,803 Naira, Internally Generated Revenue of 9,391,164,232 Naira and capital receipts of 19,689,474,347 Naira.

Bello assured members of the House that the budget would be used judiciously.

He added that the government had budgeted to spend 4.29 billion Naira on Education, 3.59 billion Naira in Infrastructural Development, 2.61 billion Naira in Health, 2.53 billion Naira in Agriculture and Rural development; 2.38 billion Naira in Water Resources.

He further said that the budget would focus on wealth and job creation through Youth Empowerment Programmes, agricultural development, construction, upgrading and rehabilitation of health facilities and services, completion of all on-going road projects and construction of new roads, completion of inherited abandoned Water and electricity projects, renovation of schools using the whole-school development approach and improvement and enhancement of Internal Revenue Generation.

The governor further stated that the State Government intends to obtain a N5 billion Bond to address income generating projects that will support additional Internally Generated Revenue and contribute to the repayment of the bond to cushion the cost of repayment.

The Governor stated that his administration will do its best to restore confidence in the management of its finances stressing that bold steps will be taken to alleviate the sufferings of the people.

The Speaker of the House of Assembly, Rt. Honorable Ahmed Marafa, in his address, urged the executive to intensify its efforts at blocking leakages and avenues for wastage, while calling for the immediate implementation of the Treasury Single Account system in the state.

The budget tagged ‘Budget of Restoration’ is 6 billion Naira less than the 2015 Budget estimated at 80.81 billion Naira.

NNPC Pays $607.8M To Federal Account

The Nigerian National Petroleum Corporation (NNPC), has opened its books for public scrutiny.

In the current report published by the management of the corporation, a total of 607.8 million Dollars is said to have been paid into the Federation Account this year.

A further breakdown indicated that the total export Crude Oil and Gas receipts for the period of January to August 2015 is 3.420 billion Dollars.

Of the total amount, the sum of $0.61bn was remitted to the Federation Account while the balance-$2.81bn- was said to have been used to fund the JV cash call for the period.

This report is in line with the earlier promise made by the NNPC Group Managing Director, Ibe Kachikwu, to make all spending and revenue public .

NNPC Secures $1.2 Billion Funding For 36 Oil Wells

As part of a strategic move to grow Nigeria’s oil and gas reserves and generate more income, the Nigerian National Petroleum Corporation, NNPC has secured a $1.2 billion multi-year drilling financing package for 36 Offshore/Onshore Oil wells under the NNPC/Chevron Nigeria Limited Joint Venture.

At the ceremony held in London to consummate the deal, the Group Managing Director of the NNPC, Dr Ibe Kachukwu described the new alternative funding model in the upstream financing which would serve as a template for future initiative to supplement the Federal Government’s Joint Venture Cash Call commitment.

A break down of the funds which is being financed by a consortium of Nigerian and International lenders indicates that the $1.2bn is to be channeled into the development of 23 onshore and 13 offshore wells on OML 49, 90 and 95 in two stages over 2015-2018.

Stage one, comprising 19 wells, is projected to deliver 21,000 barrels of crude oil and condensate per day alongside 120 million standard cubic feet of gas per day (mmscf/d) over 2015 and 2016.

Stage two, comprising 17 wells is projected to yield 20, 000 barrels of crude oil and condensate per day alongside gas production of 7 million standard cubic feet per day (mmscf/d) between 2016 and 2018.

It is also envisaged that both stages of the project would generate $2 to $5 billion of incremental revenue to the Federation account.

Beyond the contribution to the National Treasury, the projected peak incremental gas production of 127 mmscf/d, which is the electricity equivalent of 400 megawatts would help boost the Federal Government’s domestic gas aspirations with expectant positive effect on power supply.

FG Begins Probe of Jonathan’s Government

The much talked-about probe of the administration of former President Jonathan Goodluck has finally begun.

This was revealed by the ad-hoc committee on the management of excess crude account proceeds and accruals into the federation account set up by the National Economic Council and headed by the Governor of Edo State, Mr Adams Oshiomhole.

Governor Oshiomhole, who briefed journalists after the committee’s meeting in Abuja on Thursday, explained that two international forensic audit firms would investigate how the revenue that accrued into the federation account was spent under former President Jonathan.

“We know now that although people talk of Excess Crude (Account), actually we have other revenues like bonuses, royalties (and) taxes, part of which also flow into the federation account, depending on the budget estimate of the National Assembly.

“So, we are taking a holistic review of the entire process and looking at all the agencies that ought to make contributions or fund the federation account.

“We are convinced that by appointing audit firms, we will allow professionals to carry out this exercise so that it will be free from any political colouration,” he said.

He added that the audit would cover the period from January 1, 2010 to June 1, 2015.

Buhari Approves 400bn Naira For Unpaid Workers’ Salaries

Nigeria’s President, Muhammadu Buhari, has approved over 400 billion Naira as an intervention fund to end the lingering crisis of unpaid workers’ salaries.

The relief package also includes about 300 billion Naira soft loan for states to access for purpose of paying backlog.

About $2.1 billion (413.7 billion Naira) of the money was said to be sourced from the recent Liquefied Natural Gas proceeds to the Federation Account.

Central Bank-packaged special intervention fund that will offer financing to the states, ranging from between 250 billion Naira to 300 billion Naira is another source of the fund, which would take care of the soft loan available to states to access.

Also part of the intervention is a debt relief program proposed by the Debt Management Office, which will help states restructure their commercial loans currently put at over 660 billion Naira and extend the life span of such loans while reducing their debt-servicing expenditures.

At an extra-ordinary meeting of the Federation Account Allocation Committee held on Monday the Central of Nigeria (CBN) Governor, Mr Godwin Emefiele informed State Governments that the Federal Government was worried about the inability of some States to meet their obligation to their workers in the area of monthly wages.

He noted that the inability of most states to pay salaries was due to the huge debt hanging on their necks.

Mr Emefiele said: “Most States take short term loans for long term projects and servicing their monthly obligations to the banks hampers cash flows, thereby restricting them from payment of salaries”.

The CBN Governor also informed the States that the apex bank was willing to assist such States in restructuring the loans owed the commercial banks.

He directed the affected States to submit to the CBN, on or before July 8 the list of their loan obligations and other indebtedness to enable the CBN assist them restructure the loan to a long tenure. He explained that the assistance by the CBN was in the form of concessionary rates to the interested States.

Mr Emefiele said the CBN would schedule a meeting with the States upon receipt of the required data and expressed optimism that the process would be completed before next week.

He advised recipients of the CBN loans to prioritise salary payment, as its first line charge, before meeting other obligations.

The meeting was chaired by Permanent Secretary, Federal Ministry of Finance, Mrs Anastasia Daniel-Nwaobia. Also present were the Accountant-General of the Federation, Mr Idris Ahmed, State Commissioners of Finance, State Accountants-General, and Representatives of Federal Inland Revenue Service and Nigeria Customs Service.

Okonjo-Iweala Denies Spending Funds Without Authorization

Former Minister of Finance, Dr. Ngozi Okonjo-Iweala, has refuted allegation by some governors that she spent $2.1 billion out of the Excess Crude Account without authorization.

A statement issued by her Media Adviser Mr. Paul Nwabuikwu, describes the allegation as false, malicious and totally without foundation.

The statement says that no unauthorized expenditure from the Excess Crude Account was made under Dr. Okonjo-Iweala’s watch in the Finance Ministry.

According the former Finance Minister, decisions on such expenditure were discussed at meetings of the Federation Accounts Allocation Committee (FAAC) attended by finance commissioners from the 36 states.

Part of the statement reads, “It is curious that in their desperation to use the esteemed National Economic Council for political and personal vendetta, the persons behind these allegations acted as if the constitutionally recognized FAAC, a potent expression of Nigeria’s fiscal federalism, does not exist.”

The statement adds that the former minister is ready and willing to respond to legitimate enquiries about issues under her purview as Finance Minister.

Tag: Federation Account

Kwara Assembly Recommends Suspension Of 16 LG Chairmen

FAAC: Monthly Allocation Increases By 13 Billion Naira

Bayelsa Govt. Declares 3.5bn Naira As Unspent Funds

Bayelsa Launches Website To Aid Financial Transparency

NEITI Says NNPC Yet To Remit $3.8bn To Federation Account

NNPC Releases March 2016 Report

Governor Bello Presents 74.7 Billion Naira Budget For 2016

NNPC Pays $607.8M To Federal Account

NNPC Secures $1.2 Billion Funding For 36 Oil Wells

FG Begins Probe of Jonathan’s Government

Buhari Approves 400bn Naira For Unpaid Workers’ Salaries

Okonjo-Iweala Denies Spending Funds Without Authorization

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