Category: Featured

  • Governors lobby senators, Reps against direct primaries

    Governors lobby senators, Reps against direct primaries

    Governors are mounting pressure on senators and House of Representatives members to reconsider their position on direct primary mode of picking candidates by political parties, it was learnt yesterday.

    The governors under the aegis of the Nigerian Governors’ Forum (NGF) believe that the proposed amendment of the Electoral Act on shadow poll is directed against them, according to the source.

    Both chambers of the National Assembly are rounding off legislative work on the amendments to the Electoral Act.

    It was learnt that the governors prefer the delegate system, which allows the participation of statutory delegates and elected delegates to elect candidates.

    While the House of Representatives adopted direct primary, the Senate, which initially okayed a choice between direct and indirect primaries, later adopted direct primary approach.

    Although the Conference Committee of the National Assembly has harmonised the positions of the two chambers-Senate and House of Representatives, the task is inconclusive until the Conference Report is adopted.

    Read Also: Don’t make direct primaries compulsory, Saraki tells National Assembly

    The source said: “The governors see this as a window of opportunity to mount last minute pressure on the National Assembly to reconsider its position on this aspect of the Electoral Act.”

    While the constitutions of various political parties spell out the modes of selection of candidates for elections, they will be inferior to the Electoral Act if there is conflict.

    The constitution of the Peoples Democratic Party (PDP) emphasises the indirect system while the constitution of the All Progressives Congress (APC) has provisions for consensus, direct primary and indirect primary.

    The consensus option implies an internal agreement by the party to adopt or queue behind a candidate collectively adopted.

    The indirect primary implies the choice of a flag bearer by delegates who were elected at ward, local government and state levels.

    Under the direct primary mode, all party members are eligible to vote in the primary.

    Senate Spokesman Senator Ajibola Basiru recently shed light on the provisions on direct primaries, stressing that Independent National Electoral Commission (INEC) now has a more vigorous duty to monitor the primaries.

    He said political parties are now mandated by the law to furnish the aspirants and the electoral commission with the guidelines and the party membership register.

    The spokesman said the issue of armophorous membership will become a thing of the past.

    He said: “Accreditation will be based on party register. Any aggrieved person can go to the Federal High Court to challenge any aspect.”

    Yesterday, Basiru said he was not aware of any pressure on the National Assembly from any quarter.

    He said the parliament had gone far with the amendment, following the submission of the report of the Conference Committee.

    Basiru added: “I am a member of the Conference Committee, which did the harmonisation. We need to just adopt the Conference Report before the final bill is passed to the president for assent.”

     

  • eNaira app down 48hrs after launch

    eNaira app down 48hrs after launch

    By Nduka Chiejina and Alao Abiodun

    • CBN: App undergoing upgrade

    • Bank not disbursing 50b eNaira

    The eNaira speed wallet application is down 48 hours after the digital currency was launched on Monday, checks by The Nation have shown.

    A Central Bank of Nigeria (CBN) source however said  the application was upgraded due to the huge traffic it has attracted. Google, the source said, brought down the old eNaira app before the CBN could upload the new one.”The CBN assured that the new app will be up and running very soon on Google Playstore. What happened was a technical glitch. The eNaira app is still running on iOS,” the source said.

    eNaira is a digital currency issued by the CBN. It’s a digital form of the naira that is housed in a secured wallet called the eNaira wallet.

    The digital currency has two applications — eNaira speed wallet and eNaira merchant wallet.

    To access the eNaira, users have to download the ‘speed wallet’, which allows users to conduct transactions with speed and ease.

    Aside from the Google Store, the wallet can also be downloaded from the Apple Store.

    Read Also; CBN’s eNaira to grow Nigeria’s GDP by $29bn in 10yrs — Buhari

    Checks by The Nation show that the speed wallet for eNaira recorded over 100,000 downloads on Google Playstore alone after it was launched.

    In a statement on the eNaira website, CBN had said interested individuals can sign-up on the eNaira speed wallet by inputting their details as captured during BVN enrollment.

    The details include First Name, Last Name, Date of Birth, State of Origin, and Email.

    “Your Banks are waiting to assist you in validating and updating your BVN details to ensure seamless enrolment to the eNaira Platform,” the statement reads.

    The Nation’s correspondent had checked Google play store on Wednesday evening, and could not download the eNaira speed wallet, while the eNaira merchant wallet was available for download.

    The information read: “try again”.

    Also, the CBN yesterday washed its hands off claims that it is disbursing 50 billion eNaira to the public.

    It disassociated itself from a twitter handle @enaira cbdc whose activities it described as illegal.

    According to the CBN, “the impostor handle and fraudulent persons have been posting messages related to the eNaira with the intent of wooing unsuspecting Nigerians with claims that the Central Bank of Nigeria (CBN), among other falsities, is disbursing 50 billion eNaira currency”.

    These impostors, the apex bank, said were bent on defrauding the public through the links attached to their messages for application to obtain eNaira wallets and become beneficiaries of the said 50 billion eNaira.

    CBN denied the ownership of the Twitter handle (@enairacbdc), adding that it had suspended its presence on Twitter following the Federal Government’s ban. It warned the public to beware of fraudsters.

    The bank urged the public to seek carifications on information about the eNaira either by visiting the eNaira website: www.enaira.gov.ng, calling the eNaira contact centre on 080069362472 or visiting any CBN branch.

    The official social media handles of the eNaira, the apex bank added, are: www.facebook.com/myenaira; www.instagram.com/myenaira  

     

  • ABUAD’s new feat in kidney transplant

    ABUAD’s new feat in kidney transplant

    With its first kidney transplant successfully performed last week, Afe Babalola Multi-system Hospital in Ado-Ekiti Ekiti State is gradually carving a niche for itself as a centre of medical excellence. Associate Editor ADEKUNLE YUSUF reports that, with the achievement in this specialised area of medicine, Nigeria would, any time soon, save the billions of Naira she has been spending on medical tourism.

    At almost became a moribund case, but it ultimately ended in praises. The patient, who came entirely on his own to Afe Babalola Multi-system Hospital in Ado-Ekiti, Ekiti State capital, on April 12, had been critically ill since February-almost at the point of death.

    The procedure was carried out on the 46-year-old man, who is a player in the country’s ever-dynamic entertainment industry (name withheld), having been diagnosed to be hypertensive as far back as 2017 and had not been passing urine in the last six months as a result of which he had difficulty breathing. He also required regular dialysis to keep him alive.

    Before coming to Afe Babalola University Ado-Ekiti (ABUAD), the top celebrity who did not want his name in print had spent quality time in a health care facility in the state where he was treated. But the treatment was truncated by an industrial action, which made it impossible for him to continue his dialysis procedure.

    However, out of sympathy for his critical condition, one of the doctors at the facility gave him two options: either to proceed to another health care facility in Ekiti or better still, to go to India for kidney transplantation.

    Convinced that there was no need to go as far as India, another doctor advised the patient to try ABUAD hospital with the assurance that if the patient took to his advice, the patient would not come back to the earlier facility because of the quality of equipment, personnel and service available at the new teaching hospital.

    When the patient got to ABUAD in April, he was impressed with the way he was attended to after which he proceeded to make enquiries about kidney transplantation in ABUAD, a teaching hospital that commenced operation about three-and-a-half years ago. Pronto, he started looking for kidney donors, but he was not immediately lucky to get one.

    His words: “When I brought the first prospective donor, he was found not to be fit to donate. I then brought in the second prospective donor. Again, he was found not to be fit. Then I brought in a third, my brother-in-law (name withheld).

    “After all the screenings, the third prospect was found to be fit. We were all happy and convinced that we were getting a solution to the problem. It was then the series of a counselling sessions for us both, the donor and recipient, began. We were severally counselled.”

    Dr Stephen Olawale Oguntola, the Coordinator of the Transplant Programme and Lead Nephrologist with the ABUAD Multi-System Hospital noted that “the transplant was done simultaneously on Wednesday, October 13, using a dedicated twin-transplant theatre right here in this Hospital, thus making it the first successful kidney transplant in Ekiti/Ondo axis of the country.

    Read Also: Afe Babalola: ABUAD will be best in the world

    “The kidney function started improving right inside the theatre with the new kidney producing 2.3 litres of urine before the end of the surgery, which lasted for five hours, 15 minutes. Thereafter, the kidney function has continued to make a sustained improvement.

    “We are very happy about the way both the donor and recipient have responded to the procedure. Both of them are in very high spirits. In fact, the donor was discharged on October 20 and with the look of things, the recipient will be discharged in a couple of days to start his normal life after the transplant.”

    The consultant nephrologist, thereafter, called on members of the public to avail themselves of the facilities and equipment available in ABUAD Multi-System Hospital, stressing that “ABUAD is an enclave of endless possibilities.”

    Narrating his experience, the lucky patient who had been to the Indian Embassy thrice but could not get a visa because of the COVID-19 pandemic was full of gratitude to ABUAD and the medical team that attended to him.

    “When I got here for the first time, I was surprised that a lawyer could put in place a gigantic hospital such as this. At some point, I asked myself how a lawyer could think of this type of thing for humanity. This has endeared me to him the more. But for him, I would have died.

    The procedure at the dedicated twin-transplant theatre of ABUAD Multi-system Hospital

    “The equipment here are unparalleled. The Dialysis chairs here are very comfortable. When you sit on them, the next thing for you is to quickly fall asleep. The workers are warm, nice and caring.

    “My prayer for Baba Afe is that he should live longer. If we have more people like him in this country, things would be better. Aare Afe Babalola is comfortable. He just wants to help humanity. He is a good man.”

    The patient, who was throwing banters with people around, expressed appreciation to his brother-in-law, who, according to him, did the unimaginable by donating his kidney for him to live.

    “It is only those who genuinely love others that can do what he did. I have since been sharing my pleasant experience with people that ABUAD Multi-System Hospital is the place to be. I have been referring people here. I advise people with kidney problems to make their way to Afe Babalola Hospital. This place is better and it is not as expensive as people think. And in any case, what can be more expensive than a man’s life?”

    Commenting on the successful kidney transplant, Babalola said: “This is a milestone for ABUAD, but I am not surprised because we have quality equipment that are not available in most parts of Africa. No wonder then that major health stakeholders have acknowledged our hospital as the best well-equipped in sub-Saharan Africa.

    “It gives me immense joy because we have succeeded in convincing people that nothing is impossible here. Our prices are affordable. We have the equipment and well-trained and experienced personnel. There is, therefore, no need for anyone to go abroad for any treatment whatsoever.  Anything and everything can be done here. I am happy that my dream of having a functional university has been realised before my very eyes,” he said.

    The above was not the first medical achievement recorded by ABUAD. In March this year, it also scooped another feat in abdominal surgery with the successful procedure on the first Endovascular Abdominal Aortic Aneurysm (EVAR) in Nigeria. The procedure, which was undertaken by the hospital, was carried out by a multi-disciplinary team of experts at the institution, led by Dr Hammed Ninalowo and assisted by Dr Yemi Johnson and Dr Dave Dhiren on a patient with an abdominal aortic aneurysm.

    In another successful open-heart surgery in May, ABUAD had carried out an open heart surgery on a female patient, during which a large mass was removed from the left side chamber of the patient’s heart. The lady, who developed sudden breathlessness from a condition known as ‘left atrial myxoma,’ was brought to ABUAD where she was treated as an emergency.

  • FBN Holdings affirms Hassan-Odukale as single largest shareholder

    FBN Holdings affirms Hassan-Odukale as single largest shareholder

    FBN Holdings Plc has affirmed that Mr. Tunde Hassan-Odukale holds the single largest equity stake in the group. He is followed by Mr. Femi Otedola.

    In a regulatory filing yesterday at the Nigerian Exchange (NGX), FBN Holdings (FBNH) stated that its current shareholders’ structure show two shareholders with “material” or significant or substantial shareholdings of five per cent and above. Hassan-Odukale has a total shareholding of 5.36 per cent and Otedola, 5.07 per cent.

    The regulatory filing was sequel to request for clarifications and additional information as financial services regulators scrutinise the shareholding structure of the holding group for First Bank of Nigeria (FBN) and its former subsidiaries.

    The Nation had reported that Nigeria’s financial services regulators would launch an intensive regulatory assessment to review acquisition of a major stake in FBN Holdings by Otedola as well as recent transactions by directors of the of the company.

    In the filing by FBNH’s Company Secretary, Mr. Seye Kosoko, the group noted that it had earlier on October 18, 2021 filed appropriate notification of the shareholdings of Hassan-Odukale as a director and insider of FBN with the NGX and other relevant regulators.

    Read Also; Directors, Otedola in battle for FBN holdings

    The group explained that while Hassan-Odukale holds 4.16 per cent equity stake through direct and indirect shareholdings, he, as chairman of FBN, also has 1.20 per cent equity stake ascribed to him in line with extant rules on significant shareholder’s influence in related companies.

    The group stated that the “cumulative equity stake” of Hassan-Odukale is the summation of all his direct, indirect and ascribed shareholdings.

    Contrary to insinuations in some quarters that an oil and gas and telecommunication business mogul also holds significant shareholder in the group, FBNH stated that there was no official record of any other significant shareholders beyond Hassan-Odukale and Otedola.

    Kosoko said: “We have not received notification from any other shareholder on the attainment of five per cent shareholdings. We assure the Exchange that we will make regulatory disclosure upon receipt of such notification from any shareholder.

    “In line with applicable regulations, FBNHoldings will continue to notify the appropriate agencies and authorities whenever we receive any notice of significant shareholding by shareholders and the company’s registrars.”

    The group explained that the rationale behind including the 1.05 per cent of Leadway Pensure PFA’s holdings as part Hassan-Odukale’s shareholdings was because he has “an indirect interest in Leadway Holdings Limited that holds 69 per cent equity in Leadway Pensure PFA”.

    According to the group, the regulatory disclosure requirements as provided in Rule 17.15(c) of the Rule Book of the NGX also mandates an “insider” to make a full disclosure of their direct and indirect holdings as well as dealings in shares, to the company for transparency.

  • NNPC to fix Lagos-Badagry, Ibadan-Ilorin, 19 other roads

    NNPC to fix Lagos-Badagry, Ibadan-Ilorin, 19 other roads

    Twenty-one roads spread across the six geo-political zones are to be fixed by the Nigerian National Petroleum Corporation (NNPC).

    The state-run oil company yesterday got approval from the Federal Executive Council (FEC) to deploy some of its tax liabilities in the projects.

    Works and Housing Minister Babatunde Fashola told State House reporters after the weekly FEC meeting at the Presidential Villa, Abuja, that NNPC will commit N621.2 billion to fix 1,804.6 kilometres of road.

    Fashola said that the NNPC tax deployment will not be a one-off payment but periodic.

    Nine of the roads are in the Northcentral; two each in Northwest, Northeast and Southsouth. The Southeast and Southwest have three roads each.

    According to the minister, the identified roads were picked for redevelopment under the initiative because they are strategic to the distribution of petroleum products across the country.

    Explaining the concentration of roads in the Northcentral, Fashola said they are in Niger, explaining “Niger is major storage centre for NNPC.”

    The minister said an Executive Order 7 signed by President Muhammadu Buhari allows private sector operators to identify infrastructure such as roads for which they would deploy in advance the taxes that they should have paid.

    He said: “You recall that I had briefed you here about the use of that policy by the Dangote Group on the Obajana to Kabba and Apapa to Oworonshoki.

    Read Also: Roads on strike

    “Earlier this year, there were five other roads, the Kaduna Western Bye-pass, the Lekki Port Road, the road from Sagamu through Papalanto and a couple of others like that.

    “So, today we have another player; we have other interested players who are showing interest but we haven’t concluded.

    “But we have another player who has shown interest and committed to deploy taxes and it is the NNPC.

    “So, NNPC has identified 21 roads that it wants to deploy some of its tax liabilities to.”

    The minister said that the instructive thing about the initiative was that it would help the government to achieve many things, including Ministerial Mandate Three and Four, which were discussed at the recent retreat.

    He said that the Ministerial Mandate Three was energy sufficiency in electric power and petroleum energy distribution across the country.

    According to him, petroleum energy distribution is being impacted positively and negatively by the transport infrastructure, which is the Ministerial Mandate Four.

    The minister said: “So, NNPC has sought and council has approved today that NNPC deploy tax resources to 21 routes covering a total distance of 180.6km across the six geopolitical zones.

    “Out of those 21 roads, nine are in the North-Central, particularly Niger State; and the reason is that Niger State is major storage centre for NNPC.’’

    He said that NNPC’s gesture would facilitate petroleum distribution across the country as Niger experiences gridlock every year.

    Fashola said Niger Governor Abubakar Sani-Bello had been complaining that his roads were being damaged by trucks.

    He said that drivers, after damaging the roads with their overloaded trucks, would turn round to protest against the damage they had caused.

    The minister said: “So, they are nine like that in the Northcentral; three in the Northeast, two in the Northwest, two in the Southeast, three routes- the entire Odukpani-Itu-Ikot-Ekpene road in Lot one, two and three now, fully covered.

    “Then, in the Southwest, you have the Lagos-Badagry Expressway, the Agbara Junction, and you also have Ibadan to Ilorin – the Oyo-Ogbomosho section.

    “In the Southeast, you have the Aba-Ikot-Ekpene in Abia and Akwa Ibom; so, that is a major link; then you have Umuahia-Ikwuano-Ikot-Ekpene road again and so on so forth.

    “So, in the Northwest, it is Gadar Zaima-Zuru-Ganji road and also Zaria- Funtua-Gusau to Sokoto Road.

    “In the Northeast, it is the Cham-Numan, Bali-Serti and Gombe-Biu Roads.

    “The road impacted in the North-Central, include Ilorin-Jeda-Mokwa-Bokani sections one and two; Suleja-Minna sections one and two.

    “Bida-Lambata Agaie-katcha-Baro road and Mokwa-Makera-Tagina-Kaduna boarder in Niger State, Minna-Zungeru-Tegina road, and Bida-Minna road-all in Niger State; as I said, a total of 21 roads.’’

    The minister said that the move by the NNPC would resolve the financing problems regarding the execution of the road projects.

    He said, for instance, that the Aba-Iko-Ekpene road had an estimate of about N30.3 billion in it while the provision in the budget was N200 million.

    “If you look at Section 2 of the Suleja-Minna Road, it has N25.76 billion to complete it; the provision in the budget this year, is just N100 million.

    “So, with these interventions, all those roads will be fully funded; you don’t have budgetary challenges and financing challenges anymore.

    “So, council approved this as strategic funding for this road network.’’

    Fashola said that another memorandum related to road was also presented to the council, with regard to a section of the Calabar-Ikom-Ogoja Road, the section linking Akpet Central.

    He said there was problem with the steel reinforced drains on the road.

    The minister explained: “Those drains were put there about 42 years ago and 86 of them have failed.

    “We need to replace them now with concrete ring drains to allow water to flow; otherwise, the retention of water badly impacts the road.

    “As  a result of that, we had to revise the scope of works from rehabilitation to construction in order to remove all the old steel drains that are corroded and replace them with concrete drains, over 75km of road network.

    “That required an augmentation of the contract by an additional sum of N12 billion; that memo was approved,’’ he said.

     

  • BREAKING: FEC approves NNPC to fix 21 federal roads at N621.2bn

    BREAKING: FEC approves NNPC to fix 21 federal roads at N621.2bn

    The Federal Executive Council (FEC) on Wednesday gave the Nigerian National Petroleum Corporation (NNPC) the go-ahead to take over the reconstruction of 21 federal roads across the country.

    This was disclosed after the weekly virtual meeting of the FEC, presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

    Briefing State House Correspondents at the end of the council meeting, the Minister of Works and Housing Babatunde Fashola the selected 21 roads are 1804.6 kilometres.

    According to him, this is in line with Executive Order No. 007 of 2019 cited as the Companies Income Tax (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme) Order, 2019 (“EO7 of 2019” or “the Scheme”), signed by President Muhammadu Buhari.

    Read Also: PHOTOS: Osinbajo presides over FEC meeting

    Dangote Group was the first to take advantage of the EO7 of 2019 to fix the Obajana-Kabba road from its income tax.

    The Nation reports the National Union of Petroleum and Natural Gas Workers (NUPENG) had suspended its earlier planned nationwide strike that was to hold on October 11th to give negotiations a chance, after the NNPC warned that the strike could disrupt fuel supplies.

    NUPENG had called the strike to protest against the poor state of roads in the country, saying the situation endangers the lives of drivers.

    The Minister said it was a strategic intervention under the Federal Government Road Infrastructure and Refreshment Tax Credit Scheme.

    Fashola further explained that under Executive Order 7, it allows the private sector to deploy in advance the taxes they would pay for infrastructure development.

    He said nine of the selected projects are in North Central, three in North East, two in North West, two in South East, three in South-South and two in South West.

    Details shortly…

  • BREAKING: Gunmen kill vigilance member in Imo community

    BREAKING: Gunmen kill vigilance member in Imo community

    Gunmen on Wednesday morning shot dead a vigilance member in Abba in Nwangele Local Government Area of Imo State.

    The victim, Fidelis Nnadi, was said to have been gunned down by the hoodlums along Okwelle- Umuezealaibe road.

    He was said to have left his village Ogwuaga to Okwelle to buy some items when he was spotted by a gang of gunmen passing by the road.

    Read Also: Ohanaeze begs IPOB over Anambra guber poll

    The gunmen, it was gathered, had kidnapped a mother and child elsewhere and were passing through the community when they ran into him.

    They were said to have identified him as a security agent and shot him at close range immediately.

    Details Shortly…

  • BREAKING: Cross River Assembly member dies

    BREAKING: Cross River Assembly member dies

    Representative of Akpabuyo Constituency in the Cross River House of Assembly, Mrs. Elizabeth Ironbar, is dead.

    She died in the early hours of Wednesday after a protracted illness according to family sources.

    The second term lawmaker was elected under the platform of the People’s Democratic Party(PDP).

    Read Also: Ex-Rangers manager Smith dies at 73

    She was one of the eight Assembly members that refused to move to the All Progressives Congress(APC) with Governor Ben Ayade.

    Late Ironbar will be remembered for insisting the Chief Judge of Cross River Justice Akon Ikpeme should be confirmed despite the popular notion that she is an indigene by marriage and not birth.

    She became the second Assembly member to die in the current dispensation.

    Details shortly…

  • Petrol subsidy stays till June 2022, says minister

    Petrol subsidy stays till June 2022, says minister

    There is no plan to end petrol subsidy for now, the Federal Government  said yesterday.

    Finance,  Budget and National Planning Minister Mrs. Zainab Ahmed said provision has been made for the first six months of next year.

    She explained that subsidy payment would stop since complete deregulation of the downstream oil and gas sector will start by July 2022.

    The minister stated this at a panel session during the 27th Nigerian Economic Summit (NES#27) in Abuja on Monday.

    “In the 2022 budget, we only factored in subsidy for the first half of the year; the second half of the year, we are looking at complete deregulation of the sector, saving foreign exchange and potentially earning more from the oil and gas industry, “ Ahmed said.

    Although The  Nation had reported that no specific provision was made for subsidy payment in the 2022 budget, a top official of the   Finance Ministry,  said yesterday that the government was banking on extra-budgetary expenses for the purpose.

    “Money to fund petrol subsidy will be drawn from a special account domiciled in the Office of the Accountant General of the Federation (OAGF),” the official explained.

    At the event, Prof. Doyin Salami, chairman of the Economic Advisory Council (EAC), described subsidy payment as illegal. Also, Director-General, Debt Management Office(DMO) Patience Oniha told participants that the government has so far issued N1.5 trillion promissory notes to its creditors.

    Salami said he had argued for a long time that subsidy needed to go since the Petroleum Industry Act (PIA) made the payment illegal.

    The  EAC  chairman said: “  The  PIA essentially makes illegal to pay petrol subsidy. Yes, there is a period where NNPC(Nigerian National Petroleum Corporation) and the new regulatory agencies must calibrate themselves, but at the end of this period – and I think it is about six months, which explains why the minister has said for the first half of the year, there is a provision.

    Read Also: Sylva: Govt in process of subsidy removal

    “My view will be if we could get it done sooner than that, it will be excellent. It releases money. The key point is simply this: we are now, any which way, at the tail end of that conversation, except if we choose not to obey the law. My sense is we will obey the law and subsidy will be gone.”

    NNPC, the only importer of petrol,  deducts subsidy payment from oil and gas proceeds due to the federal, state, and local governments since no provision was made for it in the 2021 budget.

    In seven months, petrol subsidy payments gulped N714 billion.

    Explaining the N1.5 trillion promissory notes issued by government creditors, Oniha, added: “We can’t talk about debt alone, we must also talk about revenues.”

    The DMO boss explained that “when you borrow and invest  monies wisely, it will enhance growth and development”

    She added that that was “why we(government)   issued promissory notes of N1.5 trillion approved by the National Assembly. “

    Oniha said: “We can’t talk about debt alone; we must also talk about revenues. When you borrow and invest these monies wisely, it will enhance growth and development which is why we have issued promissory notes of N1.5 trillion approved by the National Assembly.”

    She noted that “to include any debt data in the country’s debt stock, it has to be approved by the National Assembly and the Federal Executive Council,

    The DMO  chief admitted that Nigeria’s debt service to revenue is high and should not be at the level that it is.  She therefore called for multiple ways of growing revenue to invest in the future.

    She said Nigeria’s Debt Management Strategy “provides a framework on how to undertake borrowings in the country”.

    Another panelist, Taiwo Oyedele, suggested that “if we want to optimise, we have to harmonise multiple taxation and multiplicity of collection agencies to ensure that revenue collection mechanisms are boosted.”

    Oyedele, who is  Africa Tax lead at the PwC,    disagreed with some policies of the government which allows about 60 MDAs(Ministries, Departments, and Agencies) to generate revenue.

    According to him,  “it is impossible for that number of agencies to be involved in revenue collection. They   should concentrate on providing services.”

     

  • Deduction row with Fed Govt: Governors reject allocation

    Deduction row with Fed Govt: Governors reject allocation

    Unless there is a quick resolution of the row between the Federal Government and states over deductions from the Federation Account, many states may not be able to pay salary this month.

    Governors have rejected their September allocation until the disagreement is resolved.

    Chairman of the Nigeria Governors Forum (NGF) Dr. Kayode Fayemi indicated yesterday that governors are angry.

    He said: “We are dealing with the issue. We would find a resolution to it. As far as states are concerned, they do not accept that funds belonging to Federation Account could just be arbitrarily deducted without the input of the states, and that’s why we are insisting that until this is clarified, we would rather leave the money in the pool until we have all agreed on the direction.”

    He spoke on the sidelines of the 27th Nigerian Economic Summit in Abuja.

    The issue is the commencement of deduction of the consultant fees from the September allocation in the Federation Account.

    The consultant fee is believed to be $416 million, which is a percentage of the Paris Club loan refund that they assisted the states to get back from the Federal Government after the states overpaid.

    It was learnt that the Minister of Finance, Budget and Planning Mrs Zainab Ahmed, bowed to pressure, having been served the mandamus judgment obtained by the consultants.

    The judgment, it was gathered, directed the minister to directly deduct the consultancy fees from the states’ allocation from the Federation Account.

    A source said: “The Finance Minister’s hands were tied by the judgment. She also got an advise from Attorney-General and Minister of Justice Abubakar Malami.”

    A Federation Account Allocation Committee (FAAC) member familiar with the issue said: “Some years back, state governments overpaid their remittances of their Paris Club debt to the Federal Government. To recover their money, state governments individually hired consultants to help them recover their money from the Federal Government.”

    He said while the states individually had an agreement with the consultants, over time, the states came together under the umbrella of the Nigerian Governors Forum to harmonise their claims and thus paved the way for the consultants to also “amalgamate” as a united body to fight for the refund to the state governments.

    The consultants, the official stated, succeeded in recovering the amount from the Federal Government and the monies were paid directly to the individual state governments.

    However, after the consultants won their case in court, the states collected their refunds and never bothered to pay the consultants.

    Read Also: Okowa lauds Southern Governors’ wives for fight against gender-based violence

    The consultants in turn, approached the court and sued the states to pay the agreed percentage of the total sum returned to them by the Federal Government.

    The official said the federal government was joined in the suit against the states by the consultants in order to get their money directly from the monthly FAAC allocations of the states, if the judgement ended in their favour.

    In accordance with their expectation, when judgement was delivered, it was in favour of the consultants. The state government did not appeal the judgement until the period for appeal elapsed.

    Thereafter, the consultants approached the Ministry of Finance to be paid directly from the FAAC allocations to the state governments the agreed percentage of the total sum agreed upon between the states and the consultants.

    When that did not happen, the consultants went to court again and got a mandamus compelling the Federal Government through the Federal Ministry of Finance to pay the consultants.

    Another area of contention between the federal and state governments is the exact amount to be paid the consultants. What is not in doubt however, is that the amount runs into over a trillion Naira.

    This development, along with other judgement debts were presented to President Muhammadu Buhari, who authorized that a 10-year Promissory Note be issued by the Federal Ministry of Finance, Budget and National Planning and the Debt Management Office (DMO) to offset most, if not all of the judgement debts.

    The Promissory Note has been issued and the consultants can either hold on to the promissory notes until they mature in 10 years or they can redeem them for cash from their banks.

    Having settled with the consultants through the issuance of promissory notes, the Minister of Finance and the Permanent Secretary have started withdrawing portions of the debt from the states’ accounts and paying same to the consultants in six special accounts to be drawn down over a 10 year period.

    Each account is opened in favour of the six consultants, two representing the 36 states and four others representing the 774 local government Areas of the country.

    Following the action taken by the Minister of Finance and Permanent Secretary to commence the direct deduction of what is owed the consultants from the states’ monthly allocation, the states, it was learnt, have rushed to President Muhammadu Buhari to secure a political settlement.