Tag: Federal Ministry of Finance

  • FG announces ₦152bn payout to local contractors

    FG announces ₦152bn payout to local contractors

    The Federal Government said it has disbursed ₦152 billion to contractors of verified contracts.

    The payment, the Federal Government, said followed established verification procedures designed to safeguard public funds and maintain accountability in government spending.

    In a statement on Thursday, the Federal Ministry of Finance said the payment process is guided by existing laws and regulations to ensure transparency and protect taxpayers’ money. 

    “The process of payment for contracts goes through various verification processes in line with extant laws and regulations, to protect taxpayers’ money and ensure accountability and transparency,” the ministry said.

    While acknowledging the financial pressure delays have placed on contractors, the ministry appealed for continued engagement as a pathway to resolving outstanding issues. 

    “We also plead for continuous dialogue and engagement for effective resolution of all conflicts,” the statement added.

    The ministry assured contractors of its willingness to maintain open communication, urging them to respect the procedures and staff involved in handling payment requests. 

    “We assure all contractors of our continuous support and openness to constructive dialogue and urge all contractors to respect the process and the personnel of the Federal Ministry of Finance, who have had to endure different levels of intimidation and harassment,” it said.

    It further stated that all outstanding payment requests would continue to be processed in line with due process and handled “in a timely and consistent manner.”

    As part of broader efforts to address the contractors plight and restore confidence among local firms, the Federal Government has proposed setting aside ₦1.8 trillion in the 2026 budget to clear outstanding payments for capital projects executed under the 2024 fiscal year. 

    Read Also: FG assures judiciary of continued support, harps on prompt justice delivery, accountability

    Of this amount, ₦100 billion has been allocated specifically for indigenous contractors, many of whom have raised concerns over prolonged delays and worsening financial conditions.

    The proposed budgetary provision follows recent protests by members of the All Indigenous Contractors Association of Nigeria (AICAN), who returned to the streets to draw attention to mounting debts and liquidity challenges within the sector.

    AICAN President, Mr Jackson Nwosu, said the protests were driven by what he described as growing desperation among contractors facing loan defaults and the risk of losing personal assets after borrowing to carry out government projects. 

    “The government has failed to honour the agreement to pay contractors whose project details had been submitted and verified. Payments finalised before the closure of the payment portal at the end of December never reflected in our accounts,” he said.

  • Police officers to Buhari, Senate: investigate IPPIS over salaries

    Police inspectors and rank and file under the Akwa Ibom State Police Command have called on President Muhammadu Buhari, the Senate and the Inspector General of Police to investigate the consistency in the payment of their salaries.

    The officers specifically queried the activities of the Integrated Personnel, Payroll and Information System, IPPIS, saying they suspect fraud.

    According to the officers who pleaded anonymity, they have been suffering underpayment of their regular salary every month since 2018 when payment of police Salaries and allowances was moved from Mechanized Salary Section (MSS) to the IPPIS, an agency under the Federal Ministry of Finance.

    One of them further lamented that all their efforts to get the anomaly corrected had been futile especially as nobody has given them any reason over the issue.

    He said, “We made complaints at the MSS Uyo and the officers there blamed the IPPIS saying problem is from the IPPIS. And when some of us suffered and travelled to IPPIS office in Abuja they were referred back to the MSS in Uyo and blamed the MSS for the short payments and non-payment in some months.

    “Since IPPIS took over payment of our salary in March 2018 discrepancies in our salaries has become a nightmare. Our monthly salary is no longer a fixed amount such that policemen in the same grade level received different amount of money.

    “Some inspectors on same grade level 10 now receive N50, 000, N60, 000, some N40, 000. And we also have situations where constables are receiving N250, 000 monthly salary, while sergeants, inspectors are paid N10, 000, N32, 000, and even N9, 000 as monthly salary.

    ”We demand to know why officers in the same grade level are paid different as salary, and why the amount paid each monthly is not consistent.

    “The situation is that we no longer know what our salary is per month as IPPIS pays whatever amount they deem fit for each month. Some people lose up to N60, 000, each month from what they have been receiving before IPPIS took over our salary payment.

    Read Also: Northern CAN backs leader’s visit to Buhari

    “We are therefore appealing to the president, the Inspector General of Police IGP to as a matter of great importance institute a high powered investigative panel to unravel this endemic corruption. IPPIS activities as it relates to payment of police Salaries should be investigated from February 2018 till date”

    Another affected police officer said that they have found out recently that their colleagues with the Economic and Financial Crimes Commission EFCC have been paid refund from the short payment after going to IPPIS office in Abuja to threaten them.

    “In fact we gathered that few of our colleagues that have corrected their own short payment did so by visiting IPPIS through back door. That is why we are calling on the IGP, Chairman Senate Committee on Police Affairs, to set up a fact finding team to go across the command and hear the agony of the men before we embark on protest to expose IPPIS and they fraud they have been committing.

    “Even the implementation of the new salary package approved by President Buhari for the Nigeria Police Force December 2018 is another source of concern as the fraud by IPPIS continues. It is unfortunate because this is only a mockery of the President’s fight against corruption”

  • Price Checker: FG introduces digital platform to prevent procurement frauds

    The Efficiency Unit of the Federal Ministry of Finance and Bureau of Public Procurement (BPP) in its bid to ensure uniformity in procurement across Ministries, Departments, Agencies (MDAs) have created the Price Checker platform.

    The Price Checker platform being digital and web-based, enables vendors of non-customised goods to upload the prices of their goods for use by all MDAs and governments in their processes of public procurement.

    The Head, Regulation and Database Department, Bureau of Public Procurement, Mr. Aliyu Aliyu, at a sensitisation programme on Price Checker and e-Procurement jointly organised by Efficiency Unit and BPP, said “Price Checker is a platform that will allow product vendors to upload their prices so that our procurement will be more transparent such that government should not spend money on expensive items.”

    According to him, Price Checker platform became inevitable with the introduction of GIFMIS which revealed serious disparity in rate of procurement among MDAs.

    “This way everybody will have idea of what prices are and when we publish procurement record, anybody can check and raise concerns.

    “By the time we do a review of an agency’s procurement and discovered that you purchased items far higher than what was the trend at a particular time, you will get a query or we asked EFCC to visit you. The price checker is just a check to ensure efficiency. We are aware that prices cannot be exactly the same but they should not be unreasonably higher,” he said.

    He gave the assurance that the Public Procurement Act has already taken care of suppliers has taken care of their interest in cases of payment delays.

    Aliyu further added that: “The system is not expected to procure and not pay suppliers promptly. There is the delay payment clause in the public procurement Act where after 60 days of supply, government ought to pay interest on delays.

    “With that clause invoked, we expect that we don’t give contracts when there is no money to pay for it. There is a punitive clause in the public procurement Act whereby after 60 days without payment, a contractor or supplier can invoke.”

    The Head, Efficiency Unit, Mr. Ojonimi Imaji, in his opening remark, noted that governments at all levels are facing paucity of funds in discharge of their constitutional responsibilities as they are webbed by heavy financial burden.

    According to him, “This has made government to become inquisitive to explore and use all relevant avenues that will allow for transparency in its transactions and to have an improved revenue generation to be able to fund critical projects and programmes that will be beneficial to citizens.”

  • Ex- Airways workers urges Buhari to probe indicted persons

    ….Calls for commission of inquiry

     

    As the Presidential Initiative on Continuous Audit (PICA) and Federal Ministry of Finance begin the payment of N 22.3 billion to ex- workers and pensioners of liquidated national carrier –  Nigeria Airways Limited this week, President Muhammadu Buhari is beaming the searchlight on those that ruined the carrier.

    The searchlight on the rested national carrier by Buhari it was also learnt involved recovery of huge sums of money including billions of naira and millions of dollars from individuals, organizations and agencies that mismanaged the airline.

    Besides, recovery of misapplied funds, the President , it was also learnt is putting efforts in place through the relevant agencies of government to initiate prosecution against indicted individuals, organizations and agencies.

    The Justice Obiora Nwazota , who served as chairman of the Judicial Commission of Inquiry  submitted its white paper to government.

    The Judicial Commission for the investigation of Airways worked for 12 months and submitted its report to government on May 8, 2002.

    It submitted the draft of the white paper on November 18, 2002.

    Other members of the Judicial Commission were : Mrs Catherine Okon ; Secretaty ; Chief Chimezie Ikeazor ( SAN); Chief Yemi Adefulu; Dr Mfon Amana; Alhaji Mika Anache and Chief Eni Okoi.

    Sources close to the liquidated carrier said Buhari is constituting a team to initiate a probe into how the fortunes of the rested airline dwindled before it closed shops.

    In particular, the President it was learnt intends to look at the white paper on the Report of the Judicial Commission of Inquiry for the investigation of the management of Nigeria Airways Limited between 1983 -1999.

    The white paper indicted some high profile Individuals and organizations/ agencies  from whom various sums running into billions of naira.

    The panel was mandated to the financial position and financial management of Airways to examine all books of account and records to ascertain their compliance with appropriate regulations.

    The panel was to investigate the application of funds, including budgetary allocations, special grants , loans for specific projects and proceeds from the sale of its product and services as well as verify , evaluate, ascertain the authentic level of indebtedness between 1983 and 1999.

    Confirming the development, Chairman of Aviation Union Grand Alliance (AUGA) and Chairman of Ex – Airways Workers , Comrade Lookman Animashaun said though the workers and pensioners are excited over the approval for payment of their severance benefits, they want Buhari to ask questions on how the airline was ruined .

    He said the President should go beyond asking questions but insist on the implementation of the recommendations in the White Paper released by the Justice Obiora Nwazota Judicial Commission of Inquiry .

    Read Also: That Nigeria Airways’ financial jamboree

    Animashaun said looking into the recommendations of the White Paper could not be more apt than now, when the Justice Nwazota is still alive to give credence to the contents of the document.

    He said ex- Airways workers would want Buhari to push for the prosecution of politically exposed persons who were indicted in the White Paper , but straddle across the political landscape untouched.

    Animashaun said “Though we thank President Muhammadu Buhari for approving the release of our severance benefits, but we learnt the president has started asking questions on what led to the collapse of the firmer national carrier .

    “Beyond asking questions, Buhari must ensure government goes back to the white paper and institute a commission of inquiry , more so that Justice Obiora Nwazota is still alive.

    “Every recommendation in the white paper should be implemented to the letter and the names of persons inducted in the report should be prosecuted. It is only when government does this that the wounds inflicted on the psyche of former workers of the rested national carrier would heal .”

    Meanwhile, not less than four commercial banks have besieged the precincts of the Skypower Catering limited  to scout for customers as verification and payment of severance benefits to ex – Airways workers and pensioners kicked off in the Lagos region at the weekend.

    The sleepy premises of Skypower Catering Limited, the only surviving subsidiary of the rested national carrier came alive with hundreds of ex- workers and pensioners thronging the venue to perfect documentation for their payment which will run between October 15, 2018 and October 22, 2018.

    Officials of Guarantee Trust Bank (GTB) , First Bank, FCMB and Sterling Bank have erected canopies at the venue to scout for customers willing to deposit or transfer their monies in their banks.

    Besides, officials of the PICA and other groups were on ground to educate the ex- workers and pensioners on the requirements and modalities of payment.

    It was learnt that next of kins of beneficiaries that have died after the initial payment of severance benefits were also on ground to acquaint themselves of the requirements and procedure for payment.

    A source hinted that they were requested to supply the staff number of the late beneficiary; the pensioner number; letter of attorney as well as a letter of identification.

    Other requirements, a source hinted should include a death certificate and obituary publication in a newspaper announcing the death and burial programme of the late beneficiary.

    An official who declined to give his name said :” Our mandate as representative of government on ground is to ensure that only those entitled to get the severance benefits are paid. The whole essence is to ensure that are not deprived of their money , provided they abide by the procedures .

    ” All we have done so far is to ensure we verify the names on the list and go ahead to pay them their entitlements in the next two weeks.”

    A source hinted that the last batch of the severance benefits will be processed for payment before the next six months .

  • FG plans 100, 000 units mass housing scheme

    The Federal Government has said plans have reached advanced stage to deliver 100, 000 annual affordable homes as social housing scheme in the country.

    Minister of State for Power Works and Housing II, Surv Hassan Zarma disclosed this during inspection of Lafia, National Housing Programme (NHP).

    He said low income earners such as artisans, commercial vehicle operators among others would have access to the proposed affordable houses at sum of N2 million and N5 million for One-bedroom and Three-bedroom flats respectively.

    He explained that the housing project initiated by Office of the Vice President will be supported by the Federal Ministry of Finance but entirely different from the current NHP being executed in the 34 states across the Federation.

    According to the Minister, who is the Chairman, Presidential Initiative on Family Home Fund, government is committed to end housing deficits in the country.

    His words: “The 100, 000 houses is family home fund that is purely social housing programme. The cost will not be as high as this; it will be much more lower.

    “We are thinking of a One-bedroom that will cost N2 million and a Three-bedroom that will cost maximum amount of N5 million.”

    The Minister added that, “It will be as simple as possible, as simple as it can be affordable and as simple as it can adapt to our cultural backgrounds.

    He applauded progress of work at the Lafia NHP stressing that it will be beneficial to the people.

    Earlier, at his visit to the Nasarawa State Governor, Tanko Al-Makura, the 22.5MVA Capacitor Bank in Keffi will improve power in the state while the Loko road and Loko bridge of N51 billion are expected to boost social economic well-being of the people and state.

    He noted that the usual movement of people and goods through Jos to the South East will cease and it will be from Nasarawa into Taraba State.

    He pleaded for more lands for second phase for the NHP, stressing that the state will largely benefit from the scheme.

    “As chairman of the Family Homes Fund, directly under the Ministry of Finance, we are appealing for more lands for the project which will benefit your people and Nigerians at large,” he stated.

    Al-Makura, who was represented by his Deputy, Silas Agara, in his remarks, commended the Federal Government for infrastructure projects in the state.

    He described them as an attestation to President Muhammadu Buhari commitment to delivering on his campaign promises.

    He said about 13.8 hectares was donated to the Federal Housing Project and restated his commitment to provide additional land for second phase of the project.

    Read Also:Fashola raises hope on housing scheme

    He noted that over N65 million was paid to communities as compensation for the lands donated to the federal government.

    Speaking on need to consider local contractors, Governor urged the Minister to kindly review the process.

    He emphasised the road projects will change face of the state stressing that the power project will boost business activities as well.

    However, the Governor noted that the Toto – Nasarawa – Abaji road already became “den of kidnappers”, thus need for the federal government to consider the road rehabilitation.

    While explaining that the bulk of Rice consumed by the state comes from farmers at the River Benue shore, he said it would improve livelihood of the people and traders plying the road.

    The governor emphasised that the state deserves more in terms of infrastructure development, adding that the Lafia – Keffi 65 kilometres road had attained more than 40 per cent completion.

    “The road will improve food security in the state and FCT by the time it’s completed. Most of our people in Nasarawa State are farmers and this will help create market for the farm produce and reduce food prices,” he stated.

     

  • Adeosun seeks new approach to curbing financial crimes, terrorist financing

    Adeosun seeks new approach to curbing financial crimes, terrorist financing

    Finance Minister, Mrs. Kemi Adeosun has called for the adoption of a new approach to the fight against financial crimes and terrorist financing if states in West Africa were to succeed in their efforts to curb these crimes in the sub-region.

    Mrs. Adeosun said unlike before, attention should now be directed at evolving preventive measures and other preliminary efforts, including strengthening existing agencies established to fight these crimes.

    The Finance Minister spoke in Abuja Friday at the opening session of the 18th Ministerial Committee meeting of the Inter-Governmental Action Against Money Laundering in West Africa (GIABA).

    Represented by the Permanent Secretary, Federal Ministry of Finance, Mahmud Isa Dutse, Mrs. Adeosun said: “I want to state that it is not the arrest, investigation and prosecution of culprits only that make up the fight against the menace of money laundering and financing of terrorism as many would want to believe.

    “Much more is needed to be done in the administration, prevention and other preliminary efforts, much of which involve building, strengthening and administering as well as developing appropriate policies and practices for relevant anti-corruption, anti-money laundering and combating the financing of terrorism institutions.

    “Focus should also be centered on bringing the existing anti-money laundering and combating financial crimes (AML/CFT) institutions to the attention and understanding of all stakeholders.

    “Stakeholders need to have good understanding of these institutions – both local and international – that are in place to fight corruption, money laundering and financing of terrorism; what is to be done, by whom and the timeline required to do them,” Mrs. Adeosun said.

    GIABA’s Director General, Colonel Adama Coulibaly praised the Nigerian government for its various initiatives aimed at addressing the challenges of financial crimes and terrorist financing.

    Coulibaly said “Recent strong measures taken by Nigeria, including the freezing of all bank accounts not covered by a bank verification number (BVN) to conduct transactions on all banking platforms in Nigeria for the benefit of the Public Treasury are to be hailed.

    He said these measures “should be complemented with those expected by the Egmont Group and the international FATF community to definitively consecrate the independence of the Financial Intelligence Unit vis-à-vis other national entities involved in the fight.”

    Coulibaly called for the continued support and commitment of GIABA’s member nations to enable the agency deliver on its mandates.

  • Reps read riot act to ministry over $200m foreign loans allocation

    Reps read riot act to ministry over $200m foreign loans allocation

    The House of Representatives Committee on Aids, Loans and Debt Management Wednesday read the riot Acts to the Federal Ministry of Finance over its allocation of $200 million for foreign Loans requests from the State Governments.

    Members of the Hon.  Adeyinka Ajayi- headed Committee were livid that the Ministry insisted that the loan request had been pegged to $200 million in spite of the fact that the House had the mandate to scrutinize and approve such requests.

    Trouble started when the Ministry of Finance, represented by a Deputy Director, Benson Odaura insisted that the French Development Agency component of the foreign borrowing plan has a total ceiling of $200 million. According to him, the development agencies must deal directly with the Ministry and not the states.

    The Ministry, he also said, would determine how much each of the four states would get from the $200 million approved.

    But the committee said they had the mandate of the House to scrutinize the foreign loans process by state governments, adding that there are a number of parameters they must fulfill in line with the Fiscal Responsibility Act, but under the oversight of the committee. ” We will not cede that discretion to the Ministry of Finance,” Ajayi vowed.

    His words: “The ministry didn’t say they had only four states in the borrowing plan. The issue of states came up during the interaction with the French development Agency component of the borrowing plan . The French Development Agency Component as requested by Mr. President is in respect of four states. Those four states are Kano, Enugu, Ogun and Plateau State. Now. That agency had the sum of 200 million dollars lumped together.

    “In our interaction with respective states, each state made presentation to their own requests as a component of the $200 million. And in computing, we realized that we will exceed the $200 million going by the request of the states. So we needed the Ministry to explain what it’s going to do. But what we said was that we were not going to cede that discretion to the ministry.

    Another member of the committee, Hon. Jones Onyeriere said the Ministry of Finance “is being mischievous. They can’t come here with an omnibus proposal. Loans are given on request by the states,” he said.

    However, during the presentation, the Ogun State government requested for approval for a foreign loan of $350 million. However, the committee was not happy with their presentation saying it did not match projects to funding

    Ogun State Commissioner for Budget and Planning Adenrele Adeshina however, stoutly defended the government saying there will be a risk of misrepresentation if she told the committee “here today we are going to do ABC with the funds. It’s more representative  of the part of the engagement that we are . We have separate programmes and they decide where they want to support us. It’s a work in progress.” She came with her Finace counterpart, Adewale Oshinowo.

    Engr. David Jaafarn Wayep Commissioner, Ministry of Water Resources and Energy, Plateau State said the state is asking for $50 million and that Plateau State has the ability to pay the loan being requested.

    According to him, the Internally Generated Revenue of the state has moved from N500 million Naira to 1 billion Naira hence it should not be a problem for the state to pay . He said the State Government have done a lot of work on its financial management.

    The Deputy Governor of Ondo State, Hon. Agboola Ajayi who represented the Governor explained that as a new government they “met a lot of huge debts and liabilities” and hence were asking for $57 million loan which he said translated to N17.3 billion at 305 per dollar

    The loans, according to him, has a 20 years maturity, with 7-year grace period.

    The chairman of the committee, Adeyinka Ajayi (APC Osun) stressed the fact that all applications for foreign loans from state governments must meet the requirements of section 44 and 44 (2) of the fiscal responsibility act.

  • YouWin Programme to mobilise N2.5b equity annually 

    YouWin Programme to mobilise N2.5b equity annually 

    The recently relaunched YouWin! Connect Programme is set to mobilise up to N2.5bn annually as an equity investment in start-ups and early stage SMEs through qualified fund managers under a co-investment model.

    According to a statement issued yesterday by the Director, Information Federal Ministry of Finance , Salisu Na’inna Dambatta ,the Federal Government has a renewed focus on key economic sectors in line with the Economic Recovery and Growth Plan, with an emphasis on SME-led growth in agriculture, energy, technology, manufacturing, industry and key services. 

    The Minister of Finance, Kemi Adeosun said that”The revival of these sectors, coupled with increased investment in other sectors, less reliance on foreign exchange for intermediate goods, raw materials and greater export orientation, will improve macroeconomic conditions, restore growth in the short term, and help to create jobs”. 

    Continuing, the statement said that, this is in line with the belief of the Federal Government of Nigeria (FGN) that Small and Medium Enterprises (SMEs), are engines of growth to stimulate and sustain economic recovery, thereby making the strengthening of small-scale businesses & the promotion of industrialisation, priorities for economic recovery.

    The component of the relaunched initiative demonstrates Government’s commitment to empowering start-ups and early stage SMEsproviding innovative solutions to local challenges in Nigeria. 

    According to the statement, fund managers would be expected to demonstrate a strong track record in investing in and advising early stage SMEs, with knowledge of diverse sectors and a clearly defined investment strategy.This is to ensure that fund managers can actively and positively, contribute to improving business performance by bringing onboard their experiences and having skin in the game, by providing some of the required capital.

    YouWin! Connect is an initiative of the Federal Ministry of Finance which aims to support young entrepreneurs as they Plan, Start and Grow their businesses. 

    The initiative seeks to promote entrepreneurship as a viable career option for young Nigerians this demonstrates Government’s commitment to empowering start-ups and early stage SMEsproviding innovative solutions to local challenges in Nigeria. 

    The Federal Government of Nigeria intends that additional impact of this scheme will include social inclusion, job creation, youth empowerment and improved human capital

  • 20 whistle-blowers get N375.8m cash

    20 whistle-blowers get N375.8m cash

    The Federal Government says it has paid N375.8 million to 20 providers of useful information under the whistle-blower’s policy.

    Mr Salisu Dambatta, the Director of Information, Federal Ministry of Finance, said on Wednesday in Abuja that the sum was paid with regard to the recovery of N11.6 billion.

    Dambatta said that the payment was only on recovered assets that had been declared free from litigation by the attorney-general of the federation.

    “This payment, which is the first under the whistle-blower policy, underscores the commitment of the Muhammadu Buhari-led administration to meeting obligations to information providers under the policy.

    “The policy is an essential tool in the fight against corruption.

    “The ministry, therefore, encourages all Nigerians with information on misconduct, violation or improper activity which can impact negatively on Nigeria, to report it to the appropriate authorities,’’ he said.

    Dambatta said that the policy had been amended to include the introduction of a formal legal agreement between the information provider and the Federal Government.

    He said that the agreement had already been executed by the attorney-general.

    Dambatta said that the amendment was introduced to protect the identity of information providers.

    The News Agency of Nigeria (NAN)  reports that the Federal Government introduced the whistle-blower policy in December with the purpose of supporting the fight against corruption and promoting accountability and transparency in public finances management.

    The Whistle-blower Unit is resident in Federal Ministry of Finance, Abuja.

    It is staffed with personnel seconded from the Economic and Financial Crimes Commission, the Independent Corrupt Practices and Other Related Offences Commission, and Department of State Service.

    The Nigeria Police Force and Presidential Initiative on Continuous Audit also form part of the unit, which has received 2, 150 communications and 337 tips through its dedicated channels.

    The information has led to recovery of substantial assets illegally acquired by individuals.