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Tag: Excess crude

  • ‘$2.078b in Excess Crude Account’

    ‘$2.078b in Excess Crude Account’

    The cash in the Excess Crude Account (ECA) is $2.078 billion, the Permanent Secretary, Federal Ministry of Finance, Mrs Anastasia Nwaobia, said yesterday.

    Mrs Nwaobia, who addressed reporters after the monthly Federation Account Allocation Committee (FAAC) meeting in Abuja, said the Nigerian National Petroleum Corporation (NNPC) has not refunded the $1.48 billion it was directed to refund to the nation’s coffers as recommended after the forensic audit of the alleged missing cash from the Federation Account.

    The meeting was attended by the permanent secretaries of the states and the acting Accountant General of the Federation.

    She attributed the delay in this month’s FAAC meeting to the transition of power in many states of the federation which has made many states not to form executive councils. She added that the Accountant General of the Federation (AGF) also exited on the June 12 while Directors and Accountants in the AGF’s office were sitting for qualifying examination to occupy the office following the exit of the past AGF.

    The Federal Government, the states and local governments shared N409.354 billion from the Federation Account for the month of May. This is slightly higher than the N388.339 billion shared for April.

    While the Federal Government got N151.805 billion, state got N76.998 billion; local governments gott  N59.362 billion. Another N29.071 billion was distributed as 13 per cent derivation to the oil producing states.

    For Value Added Tax (VAT), the Federal Government got N8.182 billion, state governments got N27.274 while local governments received N19.092 billion. A cash of N31.240 billion was shared among the federal, state and local governments as exchange gains proceeds while the Federal Government received an additional N6.330 billion as refund from the NNPC.

    The collecting agencies’ allocations got allocations in the following order: Federal Inland Revenue Service (FIRS)-N2.403 billion as four per cent of collecting what went in for statutory allocations, the Nigerian Customs Service (NCS) received N2.881 billion as seven per cent of cost of collection and the Department of Petroleum Resources (DPR) collected N1.541 as its cost of collection. For VAT, the FIRS collected an additional N2.273 billion as its four per cent cost of collecting VAT.

    Mrs. Nwaobia said the gross revenue of N324.061 billion received for the month was higher than the N282.062 billion received in the previous month by N41.999 billion.

    She attributed this increase to an “improvement in the bulk revenue that came from exchange gains on foreign exchange transaction because the exchange rate has been steady and higher than the benchmark exchange rate projected for the year.”

    However, she said delays in issuance of this year’s third quarter export permit led to a drop of about 160,000 barrels per day (bpd) in April and that the shut down and shut-in of trunks and pipelines at terminals also continued to impact negatively on crude oil revenue.

    An increase in the average price of crude oil from $56.04 in March to $59.88 in April she said, brought about $19.70 million gain in revenue. Government she explained, “is making efforts to block leakages and we hope that revenue will continue to improve.”

    The permanent secretary said the non-oil revenues are expected to perform better in the latter part of this year due to some mechanisms put in place by the FIRS.

    Mrs Nwaobia dismissed claims that the Federal Government was owing federal workers’ salaries stating that the ministry plans to fund the relevant account next week so that federal workers will receive their next salaries.

     

  • Excess crude oil funds: Oluyole council boss to build schools, shops, others

    Excess crude oil funds: Oluyole council boss to build schools, shops, others

    Worried about infrastructure development particularly at the grass roots, Oyo State government has channelled the chunk of the excess crude money which the Federal G overnment shared amongst the states in December last year, into provision of basic infrastructure facilities and amenities within the 33 local government councils.

    Specifically, each local government council was given N100 million from the oil windfall with the mandate to provide basic infrastructure and amenities at the local level according to the needs of the local residents.

    Yielding to this directive, the chairman, Transition Committee of Oluyole Local Government, Prince Ayodeji Abass-Aleshinloye recently inaugurated a N60 million capital projects within the council areas, which is aimed at proving succour to various communities.

    The projects include construction of Ifelojulo Community School, Ololade Layout, Mosfala, construction of 12 lock-up bungalow stalls at Toll-Gate Market, construction of 24 open market stalls at Toll-Gate, construction of 24 lock-up market stalls at New Garage.

    Others include construction of a block of three classrooms with headmaster’s office and toilet at Ansar-Ud-Deen Primary School, Onigambari and construction of a block of three classrooms with headmaster’s office and toilet at OLBC Primary School, Lamolo.

    Flagging-off the project at Ifelojulo community, Abass-Aleshinloye explained that the objectives of the state government is to bring succour to its people through construction of new modern markets, employment generation, promotion of basic education and economic empowerment of all and sundry, to enhanced living condition of the people through equitable distribution and access to the dividends of democracy.

    According to him, the inaugurated projects will be completed within two to four months to further re-emphasise that the government will not relent in its determination to improve the quality of lives of the people.

    “I want to express my pleasure with a sense of accomplishment that the state government, under the qualitative leadership of Governor Abiola Ajimobi, who has been wonderful with the aggressive manner with which he has been implementing capital projects across the nook and crannies of the state.

    “I should therefore use this medium to enjoin all and sundry to continue to join hands with the local and state government in our bid to turn this state around and refuse to be manipulated or cajoled by some deceitful politicians that are going around just to take this state backward again by decades,” he stated.

    The Oluyole council boss also charged the citizens of the state to continue to give their unalloyed support to the present administration at all levels.

    Commending the council boss, leader of Ifelojulo community, Mosfala, Chief Sola Ayoola thanked the council for simultaneously embarking upon the construction of the block of classrooms in the community.

    “Our children have been suffering for long when going to school because the closest school to our community is one kilometre away, but when this project is completed, our children will be comfortable and have a conducive atmosphere for learning,” he said.

    According to him, the presence of the government is being felt here for the first time in the area.

    Also, the Babaloja of Toll-Gate Market, Chief Samuel Odedina stated that the construction of the shops shows that the present government in the state is a listening one and has passion for the welfare of its citizens.

    “When we were chased off from the road side, we thought that this government was a wicked one, and when they promised to build modern lock-up shops for us we didn’t believe until now. We are grateful to Mr Abass-Aleshinloye and Governor Ajimobi,” the Babaloja said.

  • Use excess crude fund to build roads, markets, says Ajimobi

    Oyo State Governor Abiola Ajimobi has directed council chairmen to use their share of the excess crude oil fund and the Millennium Development Goals’ (MDGs’) funds to build and rehabilitate roads, markets and health centres.

    Ido Local Government Chairman Prof. Joseph Olowofela spoke with reporters yesterday in Ibadan, the Oyo State capital, while inaugurating some projects.

    The projects include the Alexandra Junction-Bembo road; Oke-Alaro-Alexandra road, Apata; Kuola road linking New Garage, a neighbourhood market at Bode-Igbo and a motorised borehole.

    He said the governor’s directive showed that the administration was committed to the people’s welfare.

    Olowofela said: “We are getting our funds from the excess crude oil cash. We are not only building markets, we will build strategic roads, such as the Oloruntumo and Aba Nla roads. We will also do the front of Bembo.

    “I also mentioned the MDGs project. We are lucky that this local government is one of the beneficiaries of the MDGs programme. We are going to execute a project worth about N200 million, to be completed in four months.

    Olowofela is a former Head of the Physics Department of the Federal University of Agriculture, Abeokuta, Ogun State.

    The Baale of the Bode-Igbo, Chief Muraina Agbomeji, said: “This is what we have been expecting from the government and we thank God it has come to pass today through one of my sons, Olowofela. Some people said he is not from Ibadan because they are ignorant, but we, the elders, know he is truly from here. We thank the governor for making this happen.”

  • Excess crude cash shrinks to $5.1bn

    Excess crude cash shrinks to $5.1bn

    Reserves in the Excess Crude Account (ECA) shrunk to $5.1 billion following the withdrawal of N115 billion from it to augment revenue shortfall for the July Federation Account Allocation Committee (FAAC) disbursements to the federal, states and local governments.

    Minister of State for Finance Dr. Yerima Lawan Ngama told reporters after a belated FAAC meeting in Abuja yesterday that it became necessary to draw from the ECA because of a massive drop in revenue from N863.026 billion received in June 2013 to N497.984 billion in July.

    Ngama attributed the fall in revenue to continuous theft of crude oil, leakages, pipeline vandalism at various terminals, HP compressor failure and repair work.

    Another reason the minister gave is the downward review of some companies’ estimates and a judgment debt by the Tax Appeal Tribunal on Education Tax, which reduced the Petroleum Profit Tax (PPT) paid into the Federation Account for the month.

    Also, mineral revenue for July was put at N361.935 billion, representing a shortage of N136.122 billion from the N465.057 billion budgeted for the month.

    Civil servants in both federal and state employments may have to wait a little longer to get paid this month because, as the minister explained, the lateness in holding the July FAAC meeting was due to the National Council of Finance and Economic Development (NACOFED) meeting, which took place earlier in the month in Minna, the Niger State capital.

    For last month, total revenue distributable for the month, including Value Added Tax (VAT), is N715.845 billion.

    From this, the net statutory revenue available for distribution after payment of collection costs to the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS), both of which received N4.1 billion and N2.3 billion respectively, was put at N477.049 billion, representing a N113.457 billion shortfall.

    From this amount, the Federal Government got N227.516 billion, States,  N145.39 billion while local governments went away with N88.96 billion.

    The sum of N45.1 billion was shared to oil and gas producing states as derivation fund.

    For the VAT distribution, the federal government got N10.6 billion; states, N35.6 billion; andlocal governments, N24.9 billion.

    Also distributed was the N7.617 billion Nigerian National Petroleum Corporation (NNPC) indebtedness to the federation account as well as N35.549 billion under the Subsidy-Reinvestment Programme (SURE-P).

  • Excess crude cash shrinks to $5.1bn

    Reserves in the Excess Crude Account (ECA) shrunk to $5.1 billion following the withdrawal of N115 billion from it to augment revenue shortfall for the July Federation Account Allocation Committee (FAAC) disbursements to the federal, states and local governments.

    Minister of State for Finance Dr. Yerima Lawan Ngama told reporters after a belated FAAC meeting in Abuja yesterday that it became necessary to draw from the ECA because of a massive drop in revenue from N863.026 billion received in June 2013 to N497.984 billion in July.

    Ngama attributed the fall in revenue to continuous theft of crude oil, leakages, pipeline vandalism at various terminals, HP compressor failure and repair work.

    Another reason the minister gave is the downward review of some companies’ estimates and a judgment debt by the Tax Appeal Tribunal on Education Tax, which reduced the Petroleum Profit Tax (PPT) paid into the Federation Account for the month.

    Also, mineral revenue for July was put at N361.935 billion, representing a shortage of N136.122 billion from the N465.057 billion budgeted for the month.

    Civil servants in both federal and state employments may have to wait a little longer to get paid this month because, as the minister explained, the lateness in holding the July FAAC meeting was due to the National Council of Finance and Economic Development (NACOFED) meeting, which took place earlier in the month in Minna, the Niger State capital.

    For last month, total revenue distributable for the month, including Value Added Tax (VAT), is N715.845 billion.

    From this, the net statutory revenue available for distribution after payment of collection costs to the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS), both of which received N4.1 billion and N2.3 billion respectively, was put at N477.049 billion, representing a N113.457 billion shortfall.

    From this amount, the Federal Government got N227.516 billion, States,  N145.39 billion while local governments went away with N88.96 billion.

    The sum of N45.1 billion was shared to oil and gas producing states as derivation fund.

    For the VAT distribution, the federal government got N10.6 billion; states, N35.6 billion; andlocal governments, N24.9 billion.

    Also distributed was the N7.617 billion Nigerian National Petroleum Corporation (NNPC) indebtedness to the federation account as well as N35.549 billion under the Subsidy-Reinvestment Programme (SURE-P).

  • Excess Crude Account hits $9.6b

    Excess Crude Account hits $9.6b

    The Federation Account Allocation Committee (FAAC) has paid N161.59 billion into the Excess Crude Account (ECA), bringing the new balance to $9.66 billion.

    The Accountant-General of the Federation, Jonah Otunla, stated this yesterday at the end of the Technical Sub-meeting of the FAAC on November returns.

    “I think we have fared very well in the Excess Crude Account. We targeted $10 billion at the end of the year. I am happy to tell you that we have $9.66 billion in the account. On percentage basis, that is about 97 per cent of our aspiration for the year,’’ he said.

    On the recent demand by the 36 Governors for the withdrawal of $1 billion from the oil savings account, he said the federal and state governments would be guided by the “principle of consensus’’ to resolve the matter.

    “I am sure that when they table this request before Mr President, as usual, a consensus will be reached,’’ he stated.

    He explained that the country’s mineral and non-mineral revenue dropped to N569.46 billion in November compared with N640.76 billion realised the previous month.

    A breakdown of the figures showed that N483.2 billion was generated as revenue from mineral resources, while N86.2 billion was derived from the non-mineral sector.

    He attributed the drop to several disruptions in crude oil production and lifting in the Niger Delta.

    He noted that during the period a Force Majeure was declared by Exxon Mobil.

    Otunla said leakage and fire outbreaks at Trans Niger, crude oil theft and maintenance work at oil terminals at Qua Iboe, Brass and Forcadoes also affected crude oil production.

    Meanwhile, a total of N572.89 billion was distributed among the three tiers of government from the Federation Account in November.

    “The total distributable revenue for the month is N407.86billion for statutory revenue, while Value Added Tax (VAT) is N62.72 billion.

    “Because our statutory revenue fell short of the budgeted figure of N467 billion, we excised N59 billion out of the ECA to augment the revenue for the month.

    “So, the total revenue of N572.89 billion was shared this month (November), as against 574.94billion shared last month (October) resulting in a deficit of N2 billion,’’ he said.

    The 13 per cent mineral revenue derivation to oil producing states amounted to N41.8billion in November compared with N46.2billion in October, he statedOn the Nigeria National Petroleum Corporation (NNPC) indebtedness to the Federation Account, the accountant-general said the corporation had continued its monthly refund of N7.6 billion for onward distribution to the tiers of government.

  • Excess Crude Account: States demand shares in NIPP, others

    Excess Crude Account: States demand shares in NIPP, others

    •Supreme Court gives Nov. 21 deadline

    There is a twist to the suit filed by the 36 states against the Federal Government over the legality of the Excess Crude Account (ECA).

    Although it was for hearing yesterday, the matter could no go on because the parties were yet to settle.

    The states have tabled fresh demands before the Federal Government as part of conditions for an amicable settlement.

    Federal Government counsel Austin Alegeh (SAN) said the fresh demands were received last Thursday.

    He told the panel of seven justices, chaired by Justice, Christopher Chukwuma-Eneh, that the Federal Government was committed to an amicable settlement.

    “Happily, the settlement has been ongoing and we are achieving results. On Thursday, we received new proposed settlement from the plaintiff. The defendant is reviewing it and we will shortly revert to the plaintiffs in respect thereof. We believe now more than ever before that the settlement move seems to be yielding results.”

    The Plaintiffs’ lead counsel, Adegboyega Awomolo (SAN), promised to embrace settlement, if there is genuine commitment by the Defendant.

    Consequently, the panel adjourned till November 22 for report of settlement or the taking of all motions.

    According to the Terms of Settlement, the states are asking the Federal Government to first admit that the establishment and operation of and its unilateral deductions from the Ecxess Crude Account during the 2004 -2007 were inconsistent with the provisions of Section 162 of the 1999 Constitution.

    They also asked that the Federal Government should undertake and agree that, forthwith upon the execution of this Terms of Settlement, it shall cause all sums standing to the credit of the Excess Crude Account to be transferred to the Federation Account and distributed, within 10 working days from the execution of this Terms of Settlement, among the beneficiaries of the Federation Account, i.e the Federal Government, State Governments and Local Government Councils.

    Besides, they are asking the Federal Government to bear the legal costs and the professional fees of the lawyers for all the parties. This sum is to be paid within seven days of the execution of the Terms of Settlement, directly to the Plaintiff’s lead counsel.

    The states are demanding equitable shares corresponding to each state and local government council monetary values in the National Integrated Power Project (NIPP), Railway Modernisation Deductions and Ibom Power Plant Project Deductions.

    To start with, they want all the assets, including contracts of the NIPP which was paid for using about $8.425 billion “from the Federation Account to be clearly identified, inventoried and valued by a competent and reputable Nigerian accounting firm.

    Besides, they said the Federal Government should cause a company, whose sole object shall be to takeover and operate the assets and undertaking of the NIPP, to be incorporated as a limited liability company under the Companies and Allied Matters Cap C20 Laws of the Federation of Nigeria 2004 with a share capital in a sum equivalent to the value of assets and undertaking of the NIPP as valued

    •That cause the share capital of the company incorporated is to be issued and allotted among the Federal Government, each State Government and each Local Government Council in proportion to their respective share of the US$8.425 billion from the Federation Account used to purchase and/or acquire the NIPP assets;

    •cause the inventoried and valued assets of the NIPP to be transferred to the company formed in pursuance of sub-clause 2.3.2 above, as payment, on its own behalf and on behalf of each State Government and Local Government Council, for the shares issued and allotted in pursuance of sub-clause 2.3.3 above, and procure the company to issue share certificates in accordance with the allotment;

    •enter into a shareholders’ agreement among the shareholders of the company incorporated , which will govern the rights and obligations of shareholders of the company in relation to the management and control of the company; and

    •waive and/or procure the waiver of the payment of any stamp duties, registration fees or other fees howsoever described relating to the incorporation of the company required to be incorporated.

    The states also stated the above conditions for the Railway Modernisation Project (RMP), which was paid using about $250 million from the Federation Account.

    For the Ibom Power Plant Project deductions, the plaintiffs demand that the Federal Government should

    •transfer to each State Government and each Local Government Council, such part of its shares or equity stake in the project vehicle for the Ibom Power Plant Project as is equivalent to the respective share of each State Government and Local Government Council in the US$80 million sourced from the Federation Account to pay for the said shares or equity stake;

    * procure the issuance of share certificates evidencing the holding of each State Government and each Local Government Council in the project vehicle for the Ibom Power Plant Project in pursuance of the transfer; and

    *forthwith upon the execution of this Terms of Settlement, cause any dividend which has accrued as at the date of this Terms of Settlement from its shares or equity stake in the lbom Power Plant Project to be paid to the Federation Account and distributed among the beneficiaries of the Federation Account, that is, the Federal Government, State Governments and Local Goverrunent Councils.

    Signature Bonus

    The Plaintiffs are asking the Federal Government to accept that notwithstanding the provisions of the Petroleum Act Capt P 10 LFN 2004 and the Petroleum Trust Development Fund Act Cap. P 15 LfiV 2004, its fiscal practice of paying revenue derived from signature bonus into accounts other than the Federation Account is inconsistent with the provisions of Section 162 of the 1999 Constitution.

    They also encourage the Federal Government to within 30 days of the execution of this Terms of Settlement propose legislation and introduce a Bill into the National Assembly to bring such of the provisions of the Petroleum Act Capt Pl0 LFN 2004 and the Petroleum Trust Development Fund Act Cap. P 15 LFN 2004 that are inconsistent with the provisions of Section 62 of the 1999 Constitution into conformity with the said provisions of Section 162 of the 1999 Constitution.

    *the FGN shall, forthwith upon the execution of this Terms of Settlement, cause to be ascertained with exactitude the amount standing to the credit of Petroleum Trust Development Fund, and cause same (if any) to be paid into the Federation Account.

    *The Plaintiff agrees and undertakes to negotiate in good faith with the FGN on developing and agreeing a joint Federal Government, State Governments and Local Government Councils framework for the future funding oftbe Petroleum Trust Development Fund.

    Dividends from NLNG Limited

    The Plaintiffs are asking the FGN to recognise that its fiscal practice of paying revenue derived from dividends derived from its interest, through the Nigerian National Petroleum Corporation (NNPC) in the capital of NLNG, Limited is inconsistent with the provisions of Section 162 of the 1999 Constitution.

    *with effect from the date of execution of this Terms of Settlement, the FGN shall henceforth pay all revenues which accrues from dividends derived from NLNG Limited into the Federation Account for distribution among the beneficiaries of the Federation Account in strict accordance with the Constitution.

    The states left discussion on the Proceeds of Sale of Government and Education Tax open to further negotiation with a clause that after six months of the execution of terms, either party could approach the Supreme Court for adjudication, if Parties have still not reached agreement.

    The states support, in principle,”cost of collection” and concede that by virtue of the provisions of Section 165 199 CF’RN, they have an obligation to pay to the FGN an amount equal to such part of the expenditure incurred by the FGN during each financial year for the collection of taxes or duties as is proportionate to the share of the proceeds of those taxes or duties it receives in respect of that financial year, subject however to certification by the Auditor General for the Federation in accordance with Section 168 of the 1999 CFRN.

    They waive all claims in respect of monies already ceded to FIRS and NCS as cost of collection which have already been expended by FIRS and NCS as at the date of this Terms of Settlement.

    They in return ask that the FGN waives any and all claims as it relates to any obligation to make payment to it under Section 165 1999 Cf”’RN for any financial year preceding and up to the date of this Terms of Settlement.

    The Plaintiffs undertake that consistent with

    Section 168 of the 1999 Constitution, they shall each pay to the FGN on a monthly basis and at the end of every month, an amount equal to one twelfth (1/12) of such part of the expenditure budgeted by the FGN for the collection of taxes or duties for the FIRS and NCS in the Appropriation Act, as is proportionate to their respective share in the budgeted proceeds of those taxes or duties.

    *That the Parties agree that theFGN shall, without notice be entitled to set-off the any sum due to each State Government and the Local Government Councils from the Federation Account or which may otherwise be in its custody, in satisfaction of the payment obligation

    *that Notwithstanding any thing to the contrary in this Terms of Settlement, the amount to be incurred by the FGN as cost for the collection of taxes and duties in any financial year shall not exceed the aggregate amount appropriated for the funding of the FIRS and NCS in the Appropriation Act for that financial year.

    *The FGN shall cause provisions to be made for the funding of the FIRS and NCS in the Appropriation Act.

    * funding level to be provided in the Appropriation Act for the FIRS shall be a percentage of budgeted non-oil taxes while that of the NCS shall be a percentage of the budgeted customs and excise duties collections.

    Provided always that the funding percentages for both the FIRS and the

    NCS shall be determined on a yearly basis by the Federal Government in full consultation with all State Governments.

    *Any funds appropriated for the FIRS and NCS which remains unspent as at 31st December of any financial year shall be paid over to the Federation Account at the end of every financial year.

    Waivers and Concessions

    *The Parties agree that tax expenditure in the nature of waivers and concessions are necessary for the growth of the national economy.

    *The FGN shall at all times ensure that tax expenditure in the nature of waivers and concessions are channelled to critical sectors of the national economy with a view to stimulate economic growth and development.

    *The FGN shall prepare and introduce into the National Assembly a Bill to regulate the grant of waivers and concessions and to guide and streamline the-exercise of discretion in granting waivers and concessions.

    Other Dividends and Internally-Generated Revenue

    *The FGN recognises that in pursuance of Section 162(1) 1999 CFRN, revenues from dividends in respect of shares or interests held by the FGN in any company or statutory corporation are to be paid into the Federation ACCOlmt.

    *The FGN shall with effect from the execution of this Terms of Settlement pay and/or cause to be paid all revenues which accrues, subsequent to the execution of this Terms of Settlement, from dividends in respect of shares or interests held by the FGN in any company or statutory corporation into the Federation Account for distribution among the beneficiaries of the Federation Account in accordance with the provisions of Section 162 of the 1999 Constitution.

    *The FGN shall, forthwith upon the execution of this Terms of Settlement, cause revenues from dividends in respect of shares or interests held by the FGN in any company or statutory corporation which accrued for the period 2004 to 2007, amounting to N573 billion to be paid into the Federation Account and distributed, within five (5) working days from the execution of this Terms of Settlement, among the beneficiaries of the Federation Account, that is, the Federal Government, State Governments and Local Government Councils.

    *The FGN shall pay the sum of N6. 79 billion representing the share of Bayelsa State Government and the aggregate of the Local Government Councils in Bayelsa State in the revenues from dividends in respect of shares or interests held by the FGN in any company or statutory corporation which accrued for the period 2004 to 2007 to Bayelsa State Government within five (5) working days from the execution of this Terms of Settlement.

    Interest:

    *The Parties agree that any interest earned on any sums previously held by the FGN which by this agreement is to be paid into the Federation Account shall also be paid into the Federation Account by the FGN.

    The Plaintiffs waive all claims to interest, save interest actually earned.

     

  • Governors’ meeting over Excess Crude Account deadlock

    Governors’ meeting over Excess Crude Account deadlock

    Attempts to seek out of court settlement on the disagreement between the federal and state governments over the excess crude account has failed, it was leant on Thursday.
    The account is reported to be in the region of $8billion.
    The 36 states governors who met under the umbrella of the Nigeria Governors’ Forum took the decision to head back to court to enforce the federal government’s adherence to the constitution on the issue at the end of their meeting late Wednesday night.
    Some of the Governors at the meeting include, Rotimi Ameachi of Rivers, Kayode Fayemi of Ekiti, Babatunde Fashola of Lagos, Ibikunle Amosun of Ogun, Murtala Nyako of Adamawa, Danbaba Danfulani Suntai of Taraba, Adams Oshiomhole of Edo, Sulivan Chime of Enugu and Abdulfatai Ahmed of Kwara.
    The Chairman of the NGF, Governor Amaechi, who made the disclosure at the end of their meeting, said the essence was to stop the illegal deduction from the revenue.
    This may also endanger the Sovereign Wealth Fund (SWF) set up by President Goodluck Jonathan’s administration to replace the account.
    SWF like the one before it is also facing some challenges as the governors are still uncertain about its methods of operations.
    The account was created by former President Olusegun Obasanjo’s administration in 2004 to act as a buffer during crash of crude oil price.
    The account was to save monies in excess of the budgeted benchmark price of crude oil.
    The states had argued that the account is illegal and that the federal government did not seek their input in the first place before establishing it, to receive funds in excess of estimated prices of crude oil.
    But the federal government on its part claimed that the account is being kept as a stabilization fund to protect the country against global economic crisis as witnessed between 2008-2009 global meltdown.
    However, the governors do not want to be part of it, describing the process as illegal.
    Besides, the governors also decried the process whereby it is only the federal government that has control over the use of the fund.
    The acrimony between the federal and state governments has been on since 2007.
    The governors had approached the Supreme Court, asking for a refund of their shares of the federation revenue which have been used to fund the subsidy regime among other things.