…FG saves N17 billion through Efficiency unit
The National Economic Council (NEC) chaired by Vice President Yemi Osinbajo on Thursday ordered full scale investigation of the ecological funds.
Governors at the meeting believed that the handling of the fund had not been transparent.
According to them, rather than growing, the ecological fund has shrunk to N33.6 billion.
Briefing State House correspondents at the end of the NEC meeting, Anambra State Governor, Willie Obiano, said that a committee has been set up to investigate the situation.
He was in the company of his Plateau State counterpart, Simon Lalong and the National Security Adviser (NSA), Babagana Monguno.
Obiano said that the governors of Oyo, Borno, Imo, Kaduna, Anambra, Akwa Ibom, Benue States Ministers of Finance and Environments were members of the committee.
According to him, it was necessary to know the balance of the ecological funds.
He said: “At the 76th meeting of NEC held today, the following resolutions were arrived at. First on the natural resource funds and ecological fund. The Accountant-General of the federation briefed the council on the natural resource and ecological funds as follows:
“Natural resource funds balanced as at 31 March 2017 was N70.9 billion. Ecological balance as at that date was N33.6 billion. States and Local governments now keep their share of resource and ecological funds for use as the need arises in their respective jurisdictions.
“Council decided that an audit of ecological funds be carried. Adhoc committee comprising of Oyo, Borno, Imo, Kaduna, Anambra, Akwa Ibom, Benue and Ministers of Finance and Environments have been set up to do the audit and come up with recommendations on how all the funds shall be managed.
“The reason for the audit is to look at the balance. The actual word isn’t to audit it but to reestablish that the balance is the correct balance because it’s been standing like that for a couple of months. We will address that and the committee will brief NEC at the next meeting.” he added
The Council, he said, also took briefings from the Minister of Finance, Kemi Adeosun, on the Paris Club refunds.
He disclosed that the Excess Crude Account also stood at $2.2 billion as at 26th April, 2017.
He said “Hon minister of Finance gave an update on the disbursement of Paris and preparation for the next round of payments to the state after the first disbursement. Governors expressed appreciation to the president for the previous disbursement of the funds and noted that their expectation for the next round of refund from the federal government to the states.
“The Hon. Minister of Finance told council that the balance in the Excess Crude acct as at April 26, 2017 stands at 2.2billion USD.
“Operation of the Efficiency unit under federal ministry of finance made presentation to council on the operations of the Efficiency unit in the Ministry of finance. She informed Council that the Unit has been able to save the federal government a whopping sum of N17 billion since it was established.
“The council appreciated and urged States to also establish efficiency units in order to enhance systems that will improve efficiency to discuss and bloc leakages in line with the physical sustainability plan”, Obiano said.
Lalong said that Vice President Osinabjo briefed Council on the progress so far recorded by the social investment programme.
He also dispelled the beliefs in some quarters that the payment of Paris refunds to the states was favour to them.
The refund, he said, was money taken from the states some years ago.
He said that the real reason for the probe of ecological funds was to ascertain the true situation of the money.
According to him, many states had applied but were denied the fund.
He said: “The Vice president updated council on the progress of four of the Social Investment Plan of the administration. Mainly, the N-power, Conditional cash transfer, Home grown school feeding programme and the government economic and empowerment programme for micro credit.
“Council was also briefed on certain impediments and programme implementation delays noticed in the federal government or state government collaboration and resolve to end such obstacles.
“Council therefore resolved to upgrade the state coordination unit in federal government SIPs to the governors office for better and more effective federal government/ state collaboration.
“Talking about salaries and the Paris club, I don’t think those were really the reasons given to the governors for the delays in payment of the Paris club. We understand the President has approved the payment of the Paris club. The first tranche came. We are waiting for the second tranche before the president went out for medical treatment.
“What we are complaining is the delay that we have not received the second tranche after the application. Let it not be seen as if the Paris club is a favour done to state. These are money belonging to states. So, what we are saying is that it is illegally taken about 12 years ago.
“So, we are only asking that the money be refunded to us. When the first tranche was given, that’s why we are getting out of the recession today. That’s what made some states to pay salaries. We thank the president for doing that. So, let it not be seen as if governors are rushing for it. Political opponents, I am sure, they are the ones talking about it.
“Some people will not want governors to receive the Paris club refunds at this time because they believe that if we take it, we will all pay salaries, go on with projects and then you are talking of second or third term. I don’t think that is the reason. For us governors, what we want is the judicious use of the Paris club as we did for the bail out funds.
“Our concern is that many states that have applied for ecological funds. It appears that in the last one or two years, no state has been given ecological funds. There is a purpose for ecological fund and if we are not given and we suspect that instead of moving forward or staying static, the ecological is dwindling, it is going down. Then, it means that someone else is using it. That’s why governors say no, let’s audit and see what is happening to it and go according to the procedure. If you fulfill the procedure, you get it.
“Unlike what happened in the last administration where the ecological funds were disbursed on the basis of political loyalty. In this regime, it is not like that. So, it is a procedure we are following. That was what compelled council to take a decision to audit the account to know what has happened to it and then we know the process that will follow.” he added
He said that the Council was also given updates on meningitis, noting that about N46.7 billion was required to vaccinate the affected population.
“There was also updates on meningitis. The Minister of Health made a presentation to the council on the updates of meningitis outbreak as follows: That there have been 9646 suspected cases of meningitis affecting 6 States in the country, namely: Zamfara, Katsina, Sokoto, Niger, Kebbi and Kano. As at April 25, 2017, about 767 deaths had occurred representing 9 percent of the infested population.
“About N46.7 billion is required to vaccinate the valuable population. Council expressed grave concern over the ravaging meningitis epidemic in parts of the country and advised the Federal Ministry of Health to intensify interventions to contain the embarrassing epidemic while advocating for increased funding for health.
“Finally, the minister in his presentation called for the establishment of National Health Emergency Fund to be domiciled in the presidency under the supervision of the National Economic Council chairman,” he said
The National Security Adviser, Babagana Monguno said that he briefed Council on the general security situation in the country.
He said “I was called upon for NEC to give them an update on the general security in the country. Basically, my brief dwelt in the prevailing situation between cattle rustlers, herdsmen and farmers and in particular, Kaduna, Taraba and Benue.
“I have given them a detailed brief on the current situation. Apart from that, Council was also briefed on what the security agencies are doing so far. Basically, the security agencies have commenced a general crack down of gunmen, cattle rustlers and militants,” he said.
