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)


Akwa Ibom116.6416.59133.24161.23
Cross River33.5513.5447.09153.54

FG Releases Guideline For Payment Of N45 Billion To Oil Marketers

Nigeria's Finance Minister Okonjo-Iweala speaks during an interview in Abuja
Nigeria’s Finance Minister Okonjo-Iweala speaks during an interview in Abuja

The Federal Ministry of Finace has released a guideline for the payment of oil marketers in the country, a statement by the Special Adviser ot the Finance Minister on Media, Paul Nwabiukwu said on Wednesday.

The statement, which noted that the ministry has “received several enquiries regarding the status of payments to oil marketers for fuel imports”, urged marketers to “note the following”

“Only marketers whose claims have been cleared after they have gone through the verification processes are paid. This is to ensure that the unpleasant experiences of the recent past with regard to wrong and irregular payments are not repeated.

“The process for the latest batch of payments totalling N45 billion is currently on and the Office of the Accountant-General of the Federation (OAGF) has confirmed that some marketers who have submitted letters of indemnity to the OAGF have already been paid. Other claims are being attended to.

“The letters of indemnity are an additional requirement for payment because banks which financed imports by some marketers had written to the OAGF through their lawyers to complain that their clients (the marketers) are making interest payments through other banks contrary to the terms of agreements reached. The banks in question are insisting that the interest payments be made through them since they granted the facilities that attracted the interest.

“To ensure that the Federal Government is not held liable in the event of any litigation between these banks and their marketer-customers, the OAGF has instituted the new procedure.

“It is important to note that subsidy payments are made retroactively because claims must go through all the necessary processes before they are approved and paid”, it said.

The statement further added that “government will continue to discharge its obligations to marketers whose claims are approved”.




Nigeria To Close Accounts Of Agencies That Fail To Remit Income To Treasury

The Ministry of Finance has announced that from Monday, 17 June, the Office of the Accountant General of the Federation will close the accounts of agencies that have refused to remit monies to the Consolidated Revenue Fund (CRF) of the federal government in all banks.

The Ministry in a statement signed by the Coordinating Minister for the Economy and Minister of Finance, Ngozi Okonjo-Iweala, stated that about N58 billion has been identified in such accounts, which the agencies are alleged to keeping in connivance with banks with the aim of accumulating interest.

“It has come to the attention of the Federal Ministry of Finance that some federal government agencies that generate independent revenue, in collusion with some banks, have refused to remit monies to the Consolidated Revenue Fund (CRF) of the federal government which they are obliged by law to do.”

“We have identified about N58 billion of such monies which rightfully belongs in the CRF” the statement read.

The Ministry claimed that “this unwholesome practice has persisted despite the efforts of the Office of the Accountant General of the Federation (OAGF) to encourage the agencies and the affected banks to do the right thing.”

“Rather than comply, the agencies and banks, through their lawyers have engaged in all manner of legal subterfuges to ensure that monies which are due to the Federal Government are not remitted.”

“The objective of this conspiracy against the national interest is clear: to keep government monies indefinitely in accounts earning interest for individuals at the expense of the Federal Government and the Nigerian people.”

“This is totally unacceptable and the Federal Ministry of Finance is determined that this practice must end forthwith.”

“Starting Monday, June 17, 2013, the Office of the Accountant General of the Federation, in exercise of its powers under the extant laws and rules, will close the accounts of agencies involved in this practice in all banks.”

“This process of systematic closure will continue until all monies that should be in the Consolidated Revenue Fund are retrieved” the statement warned.

Okonjo-Iweala defends budget of N43million to fumigate Ministry of Finance

The Ministry of Finance has risen to defend its 2013 budget which included a plan to to fumigate the Ministry at the cost of  N43,381,673 , claiming the proposed budget is “prudent and reasonable.”

Nigeria's Finance Minister Okonjo-Iweala speaks during an interview in Abuja

Despite the widespread condemnation that greeted the planned fumigation of the Ministry with N43 million, the Ministry in a statement on Monday stated that “the proposed annual budget for cleaning and fumigating the premises of the ministry at N43,381,673 is certainly within the parameters of industry standards.”

The statement signed by the Senior Special Assistant to the Coordinating Minister for the Economy and Minister of Finance, Mr Paul C Nwabuikwu, noted that “it is also important to keep in mind that the ministry is facing serious structural and environment challenges which have made these services very necessary” as he seeks to explain the need for the fumigation.

The Ministry has faced a massive outcry following a breakdown of the 2013 budget that revealed that the nation’s treasury will be spending that much on fumigation.

Responding to the backlash, the Ministry claimed it total budget proposal of N5,599,576,180, “represents 0.11% of the entire budget estimates”, while “the budget for the Ministry together with its agencies is N14,759,952,111.”

“This comes to 0.30% of the total budget” it explained, adding that “the provisions made for personnel, overheads, sitting allowances and travels, training and so on are modest and justifiable.”

The statement listed the agencies as Debt Management Office, Budget Office of the Federation, Office of the Accountant-General of the Federation, Investment and Securities Tribunal and the National Insurance Commission.

The statement from the Ministry, urged Nigerians to “keep in mind that the ministry pays for a lot of studies and investigations done for other parts of government in various areas of economic reform, including pensions, public service reforms, housing and mortgage etc.”

“It also hosts experts from within and outside the country in technical sessions and meetings in line with its mandate” Mr Nwabuikwu stated.

The statement concluded that the Ministry under the leadership of Dr Ngozi Okonjo-Iweala is “very conscious of its key role and will continue to lead by example in areas under its mandate.”

“The focus as always is on managing the finances of the country in a manner that protects and enhances the interests of the country” it concluded.