Tag: Bailout to states

  • Reps to probe bailout to states

    Reps to probe bailout to states

    The House of Representatives on Thursday resolved to probe issues surrounding bailout funds given to states by the Federal Government.

    The House said it would set up an ad hoc committee to investigate the terms and conditions of disbursement of the funds.

    The ad hoc committee, according to the lawmakers, will investigate utilization of the funds, level of compliance with targets and determine the necessity of further disbursement as being planned by the federal government.

    This followed a motion raised under “Matters of Urgent National Importance,’’ by Sunday Karimi (PDP)-Kogi), which was unanimously adopted by members through a voice vote, the News Agency of Nigeria (NAN) reports.

    Moving the motion, Karimi said the need to investigate the disbursement and utilisation of the funds was geared toward ensuring the welfare of citizens in the affected states.

    He explained that the federal government approved and disbursed N689.5 billion to 27 states in July 2015 and gave N20 billion to Kogi four months ago.

    The lawmaker expressed dismay that many of the beneficiary-states had failed to utilize the funds for payment of workers’ salaries and had continued to owe workers’ salaries.

     

  • Bailout: Ekiti only got N9.6b out of N29b – Fayose

    Bailout: Ekiti only got N9.6b out of N29b – Fayose

    Ekiti State Governor, Ayo Fayose, has clarified that the state only got N9.6 billion out of the over N29 billion it applied for in the Federal Government’s bail-out funds for states.

    The governor, who spoke on Monday in Ikogosi-Ekiti during the opening ceremony of a two-day retreat for commissioners, permanent secretaries and heads of agencies, also said out of the N5.6 billion applied for by the 16 local governments in the state, the federal government only approved N991 million.

    In a statement issued in Ado-Ekiti by his Chief Press Secretary, Idowu Adelusi, the governor made the clarification following insinuations that the state government did not want to pay pensions arrears and gratuities of retirees.

    “You people know that I don’t hide anything from you when allocations come. We applied for N29 billion from the bail-out fund. It is to cover the August and September 2014 salary arrears left by the Fayemi government, leave bonus, pensions, gratuities and others. But for reasons we don’t know yet, the federal government only approved N9.6 billion for salaries leaving other issues.

    “The 16 local governments applied for N5.6 billion and we did all the necessary papers and presented them to the appropriate authorities, but only N991 million was approved. We were later told by the Central Bank of Nigeria that about 14 states had similar problem with the small amount approved for local governments.

    “I have since written to them to rectify the situation and I hope they will do that quickly. It is only the federal government that can explain why they only approved one item, salary, out of the many items we presented to them on the workers’ issue.

    “We have nothing to hide and people should appeal to the federal government to release the money in full. We know it is a loan that we will repay with nine per cent interest,” he said.

    The governor also explained that the state had experienced a sharp decline in monthly allocations in recent time.

    “Last month we had a shortfall of N500 million and this month we have a shortfall of N600 million. The economy is dwindling and in bad shape and the federal government must do something about it urgently,” he noted.

  • Bailout: ICPC to monitor cash usage in 27 states

    Bailout: ICPC to monitor cash usage in 27 states

    The Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Mr. Ekpo Nta, on Tuesday said the anti-graft agency will monitor the disbursement and use of the N338billion bailout funds for 27 states.

    He asked Nigerians to feel free to raise the alarm if any state is mismanaging the funds.

    Nta made the plea in Abuja after presenting some looted funds to victims.

    He said: “ICPC will like to sound a note of warning to some states. I am sure we all read about bailout funds to states which are unable to pay salaries.

    “Part of what we do is to monitor where government funds are kept and how they are spent. There are concerns that bailout funds are not going to the purposes which they were meant for.

    “This issue of running after funds after appropriation will not continue. We will follow how bailout funds are disbursed and the beneficiaries.

    “I am calling on all the beneficiaries to pass information on the use of bailout funds to ICPC to achieve what is required.”

    President Muhammadu Buhari had approved the release of N713.7billion intervention funds to states.

    The bailout was part of a three-pronged relief package that will end the workers’ plight.

    While N413.7billion represents special intervention funds, the balance of about N250billion to N300billion is a soft loan to states.

    Also, N413.7b ($2.1b) is sourced from the recent Liquefied Natural Gas proceeds and the remaining is a Central Bank-packaged special intervention fund.

    The Debt Management Office (DMO) is expected to assist states to restructure over N660billion commercial loans crippling their economy.

    With the development, President Buhari has stopped deduction of monthly allocations to states at source.

    The CBN has started disbursing N338b bailout funds to 27 states.

    The states are – Abia (N14.152b); Adamawa‎( N2.378b); Bauchi( N8.60b); Bayelsa (N1.285b);  Benue(N28.013b); Borno(N7.680b);  Cross River(N7.856b);   Delta( N10.036b); Ebonyi(N4.063b); Edo(N3.167b); Ekiti (N9.604b); Enugu (N4.207b);  Gombe (N16.459b) and Imo (N26.806b).

    Others are – Kastina (N3.304b); Kebbi (N0.690b);  Kogi (N50.842b); Kwara (N4.320b); Nasarawa (N8.317b ); Niger (N4.306b);  Ogun (N20.00b); Ondo (N14.686b); Osun(N34.988b); Oyo( N26.606b ); Plateau (N5.357b);  Sokoto (N10.093b) and Zamfara (N10.020b).

    The conditions for securing the funds, include a resolution of the State Houses of Assembly.

  • Bailout benefits states with heavy loan burden – Ahmed

    Bailout benefits states with heavy loan burden – Ahmed

    Kwara State Governor, Abdulfatah Ahmed, on Thursday said that the expected bailout from federal government has been structured to favour states that have heavy loan burden.

    The governor said the state would not benefit much from the bailout because of its small loan profile.

    Ahmed spoke in Ilorin, the state capital, in a Radio programme called the “Governor Explains.”

    He said the N2.1 billion the state collected was its own share of the Nigerian Liquefied Natural Gas (NLNG) due to federal, states and local government areas.

    The state chapter of the Peoples Democratic Party had accused the state government of diverting the funds instead of using it to pay workers’ salaries.

    Ahmed said: “The bailout is for states that have been heavily burdened by loan such that they cannot do much business, but in Kwara, for instance, our loan profile is very small compared to other states. So even when these loans are structured, we will not benefit much from the much-talked about bailout.

    “It is those states that have heavy loans that will benefit because the loans that they should have paid in four years, has suddenly been stretched to 15 years. The federal governmentis taking over the loans from the various banks and institutions that they are owing.

    “Kwara State collected N2.1billion and the local governments collected N1.4billion. The money has gone into the payment of salaries at both levels which of course is not enough.”

     

  • Presidency denies using Jonathan’s savings for bailout

    Presidency denies using Jonathan’s savings for bailout

    The Presidency on Wednesday denied claims by the Peoples Democratic Party (PDP) that the relief given to state governments and long-suffering public sector workers were from savings by former President Goodluck Jonathan’s administration.

    A statement issued by the Special Adviser on Media and Publicity to the President, Femi Adesina, said that the claim was false and ludicrous.

    The statement reads: “The Presidency deplores the attempt by the PDP and its agents to create an unnecessary controversy over the well-intentioned effort by President Muhammadu Buhari to give some relief to state governments and long-suffering public sector workers.

    “We also reject the banal and ludicrous demand by the PDP Spokesman, Olisa Metuh, that the PDP Government which was ousted by Nigerians  at the last general elections for running the country aground,  be given some credit for “saving” the funds that were disbursed as part of the intervention package approved by President Buhari.

    “Mr. Metuh’s claim that a significant amount of the funds came from savings accumulated in the Excess Crude Account and handed over to the Buhari administration is completely false and deliberately intended to mislead the public.

    “As we clearly stated yesterday, the funds approved by President Buhari for sharing to the three tiers of government on Monday came entirely from dividends and taxes paid to the Federation Account by the Nigerian Liquefied Natural Gas Company (NLNG), not from the Excess Crude Account.

    “The disbursed NLNG dividends and taxes were paid into the Federation Account in June this year and confirmed by the Central Bank’s statement to the Federal Government on July 7, 2015. The funds cannot therefore be considered “savings” by the Jonathan administration which left office in May, 2015, as disingenuously claimed by Mr. Metuh.”

    It continued: “Instead of being repeatedly impugned and castigated by the PDP and its agents for honestly telling Nigerians that the nation’s treasury has been immensely depleted and its resources looted or squandered under previous administrations, President Buhari should be commended for the openness, transparency and accountability which he has now brought to the management of national funds.

    “It was in keeping with that disposition, that the President promptly disclosed the accrual of the NLNG dividends and taxes to the Federation Account at his recent meeting with state governors and approved the convening of a special session of the FAAC to share it.

    “As a state governor who was present at the meeting remarked, under past administrations, the states never had the benefit of such disclosures.

    “Mr. Metuh and others who now ungratefully see Monday’s disbursement of the NLNG proceeds as their  “legitimate” earnings  and not a “bailout” from the Federal Government may wish to tell Nigerians if such earnings were ever disclosed by the PDP Federal Government and paid to the states in the past.

    “The public may also wish to note that the Buhari administration itself has never referred to the actions which it has taken to ease the current financial difficulties of states as a “bailout.”

  • Presidency denies using Jonathan’s savings for bailout

    Presidency denies using Jonathan’s savings for bailout

    The Presidency on Wednesday denied claims by the Peoples Democratic Party (PDP) that the relief given to state governments and long-suffering public sector workers were from savings by former President Goodluck Jonathan’s administration.

    A statement issued by the Special Adviser on Media and Publicity to the President, Femi Adesina, said that the claim was false and ludicrous.

    The statement reads: “The Presidency deplores the attempt by the PDP and its agents to create an unnecessary controversy over the well-intentioned effort by President Muhammadu Buhari to give some relief to state governments and long-suffering public sector workers.

    “We also reject the banal and ludicrous demand by the PDP Spokesman, Olisa Metuh, that the PDP Government which was ousted by Nigerians  at the last general elections for running the country aground,  be given some credit for “saving” the funds that were disbursed as part of the intervention package approved by President Buhari.

    “Mr. Metuh’s claim that a significant amount of the funds came from savings accumulated in the Excess Crude Account and handed over to the Buhari administration is completely false and deliberately intended to mislead the public.

    “As we clearly stated yesterday, the funds approved by President Buhari for sharing to the three tiers of government on Monday came entirely from dividends and taxes paid to the Federation Account by the Nigerian Liquefied Natural Gas Company (NLNG), not from the Excess Crude Account.

    “The disbursed NLNG dividends and taxes were paid into the Federation Account in June this year and confirmed by the Central Bank’s statement to the Federal Government on July 7, 2015. The funds cannot therefore be considered “savings” by the Jonathan administration which left office in May, 2015, as disingenuously claimed by Mr. Metuh.”

    It continued: “Instead of being repeatedly impugned and castigated by the PDP and its agents for honestly telling Nigerians that the nation’s treasury has been immensely depleted and its resources looted or squandered under previous administrations, President Buhari should be commended for the openness, transparency and accountability which he has now brought to the management of national funds.

    “It was in keeping with that disposition, that the President promptly disclosed the accrual of the NLNG dividends and taxes to the Federation Account at his recent meeting with state governors and approved the convening of a special session of the FAAC to share it.

    “As a state governor who was present at the meeting remarked, under past administrations, the states never had the benefit of such disclosures.

    “Mr. Metuh and others who now ungratefully see Monday’s disbursement of the NLNG proceeds as their  “legitimate” earnings  and not a “bailout” from the Federal Government may wish to tell Nigerians if such earnings were ever disclosed by the PDP Federal Government and paid to the states in the past.

    “The public may also wish to note that the Buhari administration itself has never referred to the actions which it has taken to ease the current financial difficulties of states as a “bailout.”

  • PDP takes credit for bailout fund

    PDP takes credit for bailout fund

    The Peoples Democratic Party (PDP) has claimed credit for the N804 billion bailout fund ordered to be released to distressed states’ governments by President Muhammadu Buhari on Monday.

    In a statement issued on Tuesday by its National Publicity Secretary, Olisa Metuh, the PDP said a significant amount of the bailout came from savings accumulated in the Excess Crude Account handed over to the Buhari administration by the last PDP-led government.

    “This development is in clear contradiction to the earlier impression given by President Buhari to Nigerians and the international community that they should not expect much from his administration in its first 100 days because according him, upon assumption of office, he met a virtually empty treasury.

    “We want to believe that given the President’s release of such huge amount, he may have realized that he was earlier misdirected on the actual financial state of the nation at the time he took over. In this regard, we expect the President, as a respected statesman to do the needful to correct that erroneous impression.

    “Furthermore, we expect President Buhari’s APC administration as direct beneficiary of this savings initiated by past PDP administrations to appreciate the strategic importance of always saving for rainy days and as such guarantee prudent and transparent management of the nation’s resources now under its care,” the party said.

    The party charged the APC as a party in government to put its house in order, desist from what it termed injecting confusion and distracting the President from settling down to form a government and face the enormous challenges of governance, especially the implementation of his long list of campaign promises to Nigerians.