States’ Debt Burden Rises To Over 3.342trn Naira – NEITI

States' Debt Burden Rises To Over 3.342trn Naira - NEITIThe Nigeria Extractive Industries Transparency Initiative (NEITI) says that the debt burden of the 36 States of the Federation has risen to over 3.342 trillion Naira as at 2016.

Lagos, Delta, Osun and Akwa Ibom states topped the debt chart with a total debt profile of 1.262 trillion Naira, representing about 38% of debts owed by the 36 States of the Federation.

The breakdown shows that as at 2016, Lagos State owes 603.25 billion Naira, Delta – 331.95 billion Naira, while Osun and Akwa Ibom are indebted to the tune of 165.91 billion Naira and 161.23 billion Naira respectively.

The information was contained in the third edition of NEITI Quarterly Review, a researched publication of the organisation which focused on Federal Accounts Allocation Committee (FAAC) disbursements in 2016.

The publication, with facts and data from the National Bureau of Statistics, Office of the Accountant General of the Federation, FAAC and Debt Management Office, is consistent with the mandate of NEITI on monitoring of fiscal allocation and statutory disbursement of revenues due to the three tiers of government.

NEITI’s legitimate interest in the debt profiles, revenue generation and management in Nigeria is as a result of the fact that over 70% of the revenues involved are derived from the extractive industry.

According to the publication, States with high debt burden include Benue with 49.15 billion Naira, Edo – 94.54 billion Naira, Enugu – 57.56 billion Naira, Ekiti – 67.3 billion Naira and Kano with 81.05 billion Naira.

It also disclosed that Katsina State was indebted to the tune of 30.03 billion Naira while and Ogun owed 103.75 billion Naira as at 2016.

NEITI further broke down its analysis in a table containing the total revenue, the Internally Generated Revenues (IGR) and debt profile of the 36 States of the federation.

Table: Summary of FAAC Allocations, IGR, Total Revenue and Debt of State Governments (Jan. to Dec. 2016)

StatesTotal FAAC Allocations Received (N billion)Internally Generated Revenue (IGR) (N billion)Total Revenue* (N billion)Total Debt Burden** (N billion)
Abia34.33

 

13.3547.6844.93
Adamawa33.487.5941.0667.93
Akwa Ibom116.6416.59133.24161.23
Anambra34.3514.7949.1520.60
Bauchi39.735.3945.1383.78
Bayelsa87.737.4195.14113.69
Benue37.608.8946.4849.15
Borno40.462.5242.9828.22
Cross River33.5513.5447.09153.54
Delta97.8844.89142.78331.95
Ebonyi30.0911.0341.1346.05
Edo37.3320.6858.0194.54
Ekiti30.182.3932.5767.29
Enugu34.1512.6746.8257.56
Gombe31.413.5734.9863.89
Imo38.125.4343.5588.06
Jigawa37.543.3440.8830.96
Kaduna44.1615.5059.65110.39
Kano55.3234.4689.7881.05
Katsina41.625.5147.1330.03
Kebbi34.953.1338.0876.83
Kogi36.567.7344.2851.05
Kwara30.0816.4646.5445.38
Lagos109.31301.19410.50603.25
Nassarawa30.402.0932.5055.63
Niger39.285.7645.0333.13
Ogun32.6256.3088.92103.75
Ondo47.797.7855.5740.54
Osun31.508.9640.46165.91
Oyo40.5915.6656.2565.59
Plateau34.869.0943.95104.06
Rivers103.9882.10186.08147.98
Sokoto36.546.2242.7722.90
Taraba31.824.1135.9233.83
Yobe32.653.8036.4511.74
Zamfara33.474.2137.6755.71

NDDC Denies Buying Cars Worth Over N1bn

NDDC Denies Buying Cars Worth Over N1bnThe management of the Niger Delta Development Commission (NDDC) has denied the allegations of procurement of over 70 luxury cars each costing tens of millions of Naira, made by the Chairman of the Presidential Advisory Committee Against Corruption, Professor Itse Sagay.

In a statement issued on Thursday by the Head of Corporate Affairs at the NDDC, Chijioke Amu-Nnadi, the commission denied making such purchases since its current governing board assumed office on November 4, 2016.

According to the statement, the NDDC Chairman, Senator Victor Ndoma-Egba, and the Managing Director/CEO, Nsima Ekere, as well as the two Executive Directors are still using their private vehicles three months after assumption of duties.

The statement added that the agency is only now in the process of acquiring work vehicles.

The NDDC said it is adhering strictly to due process which includes seeking approval of the Federal Executive Council, expressing its readiness to open its books for audit at any time.

The statement read: “The NDDC is only now in the process of acquiring work vehicles, and is adhering strictly to due process. These include five (5) Toyota Prado jeeps, 10 Toyota Hilux trucks, four (4) Toyota Land Cruiser jeeps, one (1) Toyota Coaster bus and two (2) Toyota Hiace buses.

“The Commission has just received the Due Process Compliance Certificate from the Bureau of Public Procurement, BPP, and is preparing the mandatory memo for the approval of the Federal Executive Council.

Doing What Is Right

“We wish to restate that the current Board and Management of the NDDC is committed to making its transactions transparent, by adhering strictly to processes and procedures of government, as espoused in the Board’s 4-R Initiative of restoring the Commission’s core mandate, restructuring the balance sheet, reforming our processes and reaffirming a commitment to doing what is right and proper at all times in facilitating the sustainable development of the Niger Delta region.

“In this regard, the Commission is also partnering with Bureau for Public Service Reforms (BPSR), Nigeria Extractive Industries Transparency Initiative (NEITI) and Open Government Partnership (OGP) to improve the Commission’s governance systems, procurement and project implementation processes, in order to plug all loopholes and systematically eliminate all incidences of mismanagement and corruption.

“NDDC is always ready to open its books for audit. We are also committed to responding to all inquiries from well-meaning individuals and groups seeking clarification on rumours and possible false information.

“While asking for support from all stakeholders to enable the Commission succeed in the ambitious task of reforms, the New NDDC is evolving as a responsible public institution and members of the public should feel free to get authentic information on its activities to avoid sensationalism”.

Civil Groups Question Status of PIB, Oil Swap Deal, Others

Kaduna-Refinery PIBSome civil society groups in Nigeria’s Federal Capital Territory are questioning the status of the Petroleum Industry Bill (PIB) which they said had been pending for 12 years before two assemblies.

They said the modification of the bill into five sections appeared different from the original bill presented to the National Assembly.

The groups are building a common alliance to engage the Federal Government and the National Assembly on the reforms in the oil and gas sector.

Members are also questioning the oil swap status of the country and the level of implementation of the findings and recommendations of the Nigeria Extractive Industries Transparency Initiative.

Led by the Executive Director of the African Network for Environment and Economic Justice, Mr David Ugolor, the civil groups called for more public disclosure by the executive and the legislative arms of government for enhanced public involvement in these issues which affect the livelihood of the masses.

Solid Minerals Minister, NEITI To Collaborate On Sector Reforms

Minister of Solid MineralsThe Minister of Solid Minerals, Dr. Kayode Fayemi, says plans are underway to revamp the solid minerals sector, as an alternative sector for revenue generation and jobs creation for Nigeria in the face of dwindling oil prices.

Dr Fayemi disclosed the plans at a meeting with the acting Executive Secretary of the Nigeria Extractive Industries Transparency  Initiative (NEITI), on Monday.

At the meeting with Mr Ogbonnaya Orji, Dr Fayemi said that a guided needs- assessment and strong policy formulation was required to increase the level of opportunities in the sector.

Mr Orji, however, presented NEITI’s survey of the sector to the Minister with recommendations which he said were aimed at reforming the sector to establish a fiscal regime, fast track development and ensure adequate monitoring among other things.

NEITI Urges FG To Intensify Oil And Gas Reforms

NEITI Urges FG To Intensify Oil And Gas ReformsThe outgoing Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Mrs Zainab Ahmed, has urged the Federal Government of Nigeria to intensify the reforms in the Oil and Gas sector.

Mrs Ahmed said the reform would ensure transparency in the management of the Nigeria National Petroleum Corporation (NNPC).

Speaking at a valedictory briefing sequel to her ministerial appointment confirmation by the Nigerian Senate last week, she was of the opinion that there was need to review all operating agreements in the Oil and Gas sector.

Mrs Ahmed added that the Solid Minerals sector offered an alternative source of funding for government aside from oil, stressing that steps should be taken to improve the sector.

She subsequently named the Director of Communications, Dr. Orji Ogbonnaya Orji, as acting Executive Secretary of NEITI, as he was the most senior director at the agency.

NEITI Commences Audit Of Allocations To Oil-Producing States

The Nigeria Extractive Industries Transparency Initiative (NEITI) has commenced the audit of physical allocations and statutory disbursement of the extractive industry from 2007 to 2011 with an initial focus on the nine oil-producing states.

This audit is coming in line with the decision of the Federal Executive Council at its November 28, 2013 meeting.

NEITI is engaging an indigenous audit firm, S.A.I.O. Partners to audit the allocations to the nine states benefitting from the 13 per cent oil derivation.

The audit is expected to be completed within the next nine months

The states benefitting from the 13 per cent oil derivation are the oil-producing states of Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and River.

The exercise will also be extended to key entities like the Central Bank of Nigeria, the Niger Delta Development Commission (NDDC) and the Petroleum Technology Development Fund (PTDF).

The audit will also cover the federal government’s share of derivation and ecology as well as the management of the excess crude account.

Speaking at a ceremony to sign the Memorandum of Understanding with the auditing firm, the executive secretary of NEITI, Ms Zainab Ahmed said the exercise is not a witch-hunt but one that will create data for national planning and development.

The audit, which is in accordance with provisions of Section 2 of the NEITI Act 2007.