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Tag: Kemi Adeosun

  • Adeosun urges world leaders to tackle illicit financial flows

    Adeosun urges world leaders to tackle illicit financial flows

    The Minister of Finance, Kemi Adeosun, has called for greater collaboration between African governments and international community to check illicit financial flows, drive revenue growth and improve efficiency in government.

    Speaking on Tuesday at the ongoing International Monetary Fund (IMF) Spring Meetings in Washington D.C, the minister said there was need to check illicit financial flows from Africa, to enhance governments’ revenues and deliver sustainable economic growth.

    “The government is focused on resetting the Nigerian economy. To improve non-oil revenues, we have to address illicit capital flows. When stolen money is transferred from Nigeria, or other African countries, there are too few questions asked by those countries that receive the funds. But when we identify those funds as stolen and seek to recover them, there are too many questions being asked,” she said.

    Speaking further, Adeosun, said there are a lot of money sitting in foreign bank accounts that government has spent over a decade trying to recover.

    “That is money that could deliver significant value for Nigeria as we seek to increase spending on critical infrastructure and establish a basis for long term sustainable growth. I hope that the Automatic Exchange of Information scheme coming into force next year will be a step towards achieving greater transparency.

    “We need more collaboration amongst parliamentarians in Africa, and across the world to ensure that this situation improves and that recipient countries are held to account,” the minister added.

    Commenting on the domestic agenda to ensure significant reductions in ‘leakages’ of public funds, and improved efficiency in public expenditure, Adeosun said: “We are going after those who have stolen our money. We have put in place a very successful whistle blower programme that is delivering results, and allows those who report illicit activity to receive up to five per cent of any funds that we recover. We are also significantly improving our financial management controls to ensure that it is considerably more difficult for public funds to be diverted. We have to do more though.”

    “That means collaboration with the legislature. We need tighter tax and financial reporting legislation and to ratify bilateral agreements so that our enforcement agencies are empowered to deliver the results that we need.”

  • FG’s N54bn pension liabilities release not enough – Pensioners  

    FG’s N54bn pension liabilities release not enough – Pensioners  

    The Nigerian Union of Pensioners (NUP) has said that the N54 billion released by the Federal Government to cleared pension liabilities to the Contributory Pension Scheme (CPS) was not enough to cleared pension arrears.

    Dr Abel Afolayan, NUP President said this in a statement made available to newsmen on Thursday in Abuja.

    He said that the NUP felt the compelling need to put the facts straight as the Federal Government indebtedness to the CPS was over N280 billion.

    He said the release of N54 billion could not be said to have cleared the backlog of pension liability, adding the Federal Government had consistently under-appropriated for the CPS over the past few years.

    “NUP has it on verified record that whereas the sum N93 billion was needed to service Federal Government’s statutory obligations to the CPS in 2014, only N30.6 billion was approved, resulting in N62.4 billion deficit.

    “Whereas N98.7 billion was needed for the year 2015, the budget office only proposed the sum of N60.2 billion to the National Assembly that alone was a shortfall of N38.5billion.

    According to him, the year 2016 was worse as N91.9 billion was required, but the budget office proposed only N50 billion to the National Assembly, which also approved it, leaving a deficit of N41.9 billion.

    He said that of the N50 billion approved in the 2016 budget, only the sum N18.8 billion or mandates for four months was released and cash-backed.

    He added that N31.3 billion or mandate for seven and half months was never cash-backed and released.

    According to him, the truth is that approval of payment is not the same as payment.

    “It will be good for the minister to tell us when the fund was transferred to the National Pension Commission, and when it will hit pensioners’ accounts.

    “Importantly, we are saddened that the Federal Government is claiming to have cleared pension arrears when the Minister did not say a word regarding the over N174 billion owed pensioners who retired under the Defined Benefit Scheme (DBS).”

    According to him, does it mean that pensioners under this scheme have finally been condemned to life of eternal hardship, sickness, and untimely death, President Muhammadu Buhari is not only a retiree, but also a kind leader.

    “NUP recalls that he bent backwards to release bailout to State governments, which could not pay salaries.

    “We call on the President to also extend the same kindness to the federal pensioners among us, whose pension benefits are his primary responsibility.

    “ There is no doubt that the way retirees are treated would decide whether those in service and the younger generation would cue behind government’s anti-graft war or engage in looting to prepare for life after service,” he said.

    Mrs Kemi Adeosun, the Minister of Finance had said in a statement that the Federal Government released the sum of N54 billion to clear liabilities to the CPS from 2014 till date.

     

  • FG clears N54bn pension backlog

    FG clears N54bn pension backlog

    Concerned about the plight of pensioners who retired under the Contributory Pension Scheme without being paid, the Federal Government has cleared the inherited arrears of accrued pension benefit for the year 2014, 2015 and 2016 by releasing N41.5 billion to the National Pension Commission (PENCOM) for onward payment to the retirees.
     
    The Minister of Finance, Mrs. Kemi Adeosun also announced that the sum of N12.5 billion being outstanding for January, February and March 2017 has been settled based on 2016 appropriation, bringing the tally to over N54 billion.
     
    According to the finance minister, “despite conflicting demands for available cash, President Muhammadu Buhari has always expressed concern about the plight of workers and pensioners. Consistent with this, we have released N41.5 billion which clears the arrears inherited from the previous administration relating to the period 2013-15 and underpayments in 2016. This will bring relief to thousands of our elders who have served and deserve to be paid their entitlements promptly and fully.”
    The N41, 566, 565, 184 released to PENCOM was the outstanding appropriated for the year 2014 and 2016 by the National Assembly for the settlement of the retirement benefits of Federal Government employees.
     
    She explained further that “the amount we paid includes arrears and the impact is that those who retired as far back as 2013, who had been unable to access pension under the contributory scheme due to non payment, will now be paid.”
    To avoid future accumulation of pension arrears, Mrs. Adeosun assured that henceforth “the monthly allocation to the PENCOM based on the appropriation of 2017 will regularly be paid along with monthly salaries of Ministries, Departments and Agencies (MDAs).”
  • Reps to investigate 20 percent tax on imported medicines

    Reps to investigate 20 percent tax on imported medicines

    The House of Representatives is to investigate the circumstances surrounding the imposition of 20 percent tariff on a number of imported medicines.

    The lawmakers said the new tax regime is capable of making health care services inaccessible and out of the reach of the greater majority of Nigerians.

    The House has subsequently mandated it’s Committee on Healthcare Institutions and Services to investigate the issue.

    The decision of the lawmakers followed the adoption of a motion by Onwubuariri Obinna Kingsley (PDP, Imo), who noted that the Minister of Finance, Kemi Adeosun has communicated the approval of the President of an Import Adjustment Tax list wherein 20 percent tax was imposed on medicines such as paracetamol tablets and syrup, chloroquine tablets and syrup, imported into the country.

    “We however know that until this Import Adjustment List, Nigeria had a zero percent  duty on imported drugs as a result of the recommendation of an Economic Communities of West African States (ECOWAS) Committee on Health that member states impose zero percent duty on imported drugs, given that the healthcare needs of the region cannot be adequately addressed by local manufacturing.

    “It is of great concern that the situation that necessitated the ECOWAS recommendation prior to 2013 has not abated, instead it has exacerbated.

    “We should be worried that the reintroduction of duty and imposition of a whopping 20 percent tax on imported medicines will aggravate the already deplorable condition of the nation’s healthcare delivery system and could lead to high death rates,” he said.

    The motion was unanimously adopted after it was put to a voice vote, while the Committee was given two weeks to carry out the investigation and report back to the House for further legislative action.

  • Reps quiz Adeosun, Udoma over N302bn pension arrears

    Reps quiz Adeosun, Udoma over N302bn pension arrears

    The House of Representatives on Thursday quizzed the Minister of Finance, Kemi Adeosun and her Budget and National Planning counterpart, Udoma Udo Udoma over N302.4 billion pension arrears.

    The lawmakers demanded to know what the Executive was doing to offset the outstanding pension liabilities under the Defined Benefit Scheme (DBS) and the Contributory Pensions Scheme (CPS).

    The Speaker of the House, Yakubu Dogara, while summoning the ministers last week said the ministers and heads of relevant agencies must appear before the Green Chamber to find a realistic solution to the intractable problem of outstanding pension payments.

    But both Adeosun and Udoma while making presentation pleaded for more time to pay the outstanding pension arrears, saying the Federal Government paid N54 billion out of the outstanding pension arrears on Wednesday.

    The challenge, according to the ministers was due to the inability of the government to reconcile the figures between the relevant pension administration agencies.

  • President Buhari releases N54bn to settle pension backlog

    President Buhari releases N54bn to settle pension backlog

    The Muhammadu Buhari administration  has released N54 billion to clear part of the backlog of accrued pension rights for the years 2014, 2015 and 2016.

    The Director of Information, Ministry of Finance, Mr Salisu Danbatta said  on Wednesday that N41.5 billion has already been released to the National Pension Commission (PENCOM).

    The amount released was for onward payment to those who retired under the Contributory Pension Scheme and who were yet to be paid.

    Danbatta quoted the Minister of Finance, Mrs Kemi Adeosun as saying that  N12.5 billion,  being outstanding for January, February and March 2017, was also  released,  bringing the total to about N54 billion.

    “Despite conflicting demands for available cash, President Muhammadu Buhari has always expressed concern over the plight of workers and pensioners.

    “Consistent with this, we have released N41.5 billion which clears the arrears inherited from the previous administration relating to the period 2013-15 and underpayments in 2016.

    “This will bring relief to thousands of our elders who have served and deserve to be paid their entitlements promptly and fully,” she said.

    The minister said that the amount paid also included arrears of those who retired as far back as 2013 and had been unable to access their pension under the contributory scheme due to non-payment.

    To avoid future accumulation of pension arrears, Adeosun said that henceforth “the monthly allocation to the PENCOM based on the appropriation of 2017 will regularly be paid along with monthly salaries of Ministries, Departments and Agencies (MDAs).”

    All Federal Government workers began  the monthly Contributory Pension Scheme in 2004, in line with the Pension Reform Act.

    The money the Federal Government now owes its workers before the commencement of the act, is recognised in form of the issuance of Federal Government Retirement Benefits Bonds.

    Upon retirement of an employee, the bonds are to be liquidated and added to the balance of the retirement savings account of an employee to get the amount  he or she is entitled.

    To ensure that government settles backlog of accrued rights, Pension Fund Administrators are not allowed to grant retirees access to their retirement savings until the federal government releases the accrued rights component.

    This means that a retiree cannot access his or her Retirement Savings Account (RSA) through the Pension Funds Administrators without the accrued pension rights component.

    So for Public Service workers who migrate to the Contributory Pension Scheme (CPS) in 2004, shortly before they retired, they are entitled to two components of retirement benefit.

    That is the contributions accumulated in their RSA and their accrued right from the time they joined the service to the time they migrated to CPS.

    The federal public servants who retired since January 2016, had staged a protest at the Federal Ministry of Finance headquarters in Abuja over their unpaid pension to the tune of N200 billion.

    The retirees under the auspices of the League of Federal Service Contributory Pension Retirees led by the Coordinator, Mr Chike Ogbechie said that workers who have retired in the last 15 months were yet to receive their pension.

    In reaction to the recent release, Mr Ogbechie when contacted by the News Agency of Nigeria said that the “N54 billion will clear much of the backlog of our pension, but not all. So the struggle still continues”.

     

  • FG approves $1.3bn credit facilities for DBN

    The Federal Executive Council (FEC) on Wednesday approved $1.3 billion credit facilities to support the Development Bank of Nigeria (DBN).

    The Minister of Finance, Kemi Adeosun, disclosed this to State House correspondents at the end of the FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

    According to her, the DBN has obtained a total of $1.28 billion loans from some development partners, but the approval of the National Assembly is required to access the loans.

    She said the loans will be used to finance the many Micro-Small and Medium Entrepreneurs (MSME) in the country.

    The minister said: “The other memo was an approval for credit facilities totaling $1.3 billion to support the Development Bank of Nigeria. As you know the Development Bank of Nigeria recently received its licence and is been funded by some long term loans from some of our development partners.
    “So the World Bank had given us $500 million repayable over 21 years and all of this is at concessional rate. The African Development Bank is giving us $450 million and KFW is also giving us $200 million and the French Development Agency had given us $130 million.

    “To access this money, we are ready to disburse but there were two requirements that we need to make and one of them is the legal opinion by the Attorney General of the Federation and the other is the National Assembly approval.

    “Before it goes to the National Assembly it needs to be approved by FEC and the FEC simply approved today so that these loan requests should go to the National Assembly for approval so that we can access this money and the Development Bank of Nigeria can take off fully. The DBN is expected to transform financing to our MSME sector.

    “The Council enthusiastically approved these facilities which are long tenor meaning that the DBN will be able to lend to our MSMEs over much longer periods and at much lower rates. So the impact on the SMEs will be quite considerable.”

  • Why we won’t reveal Buhari’s health spendings – Lai Mohammed

    Why we won’t reveal Buhari’s health spendings – Lai Mohammed

    …F.G sets up panel to smoothen Executive, Legislative relation 

    The Minister of Information, Lai Mohammed on Wednesday said that disclosing how much President Muhammadu Buhari spents on his medical vacation in the United Kingdom may jeopardize national security.

    The President, who returned to Nigeria on March 10th, had spent about 50 days in the UK where he carried out some medical tests.

    He had also in June last year embarked on medical trip abroad.

    Even though the President’s health status and ailment is yet to be made public, the President had disclosed on his return to the country on Friday 10th March that he received blood transfusion during the vacation.

    The Minister, who briefed State House correspondents at the end of the Federal Executive Council (FEC) meeting chaired by President Muhammadu Buhari, was reacting to the calls for the President to disclose the amount spent on his medical treatment abroad.

    He was with the Minister of Interior, Abdulraman Danbazzu and the Minister of Finance, Kemi Adeosun

    According to Mohammed, it was too sensitive to disclose the amount spent on the President’s health.

    He said: “This matter has come several times and our position on the matter is quite straight forward.  What are the President’s conditions of service? What are his entitlements in terms of his wellbeing and health care? The state is supposed to take responsibility for these.

    “We believe that asking for how much has been spent on the health of the President is an issue that we should weigh very well both for national security and also for moral issues.

    “I don’t know why we must divulge such very sensitive information. I might be wrong but I don’t have experience elsewhere that the President of any country will be ill and be forced to disclose how much the state has spent on his health.

    ‘Yes, there is Freedom of Information Act but it is also carved in such a way that when such information is likely to endanger national security, I think it is an area that is not covered.” he said

    He also said that the executive is concerned that the relationship between the executive and legislative arms of government is not as smooth as it is supposed to be.

    Although he noted that it is a continuous struggle in any democracy for balancing between the Executive and the Legislature because each of them are creatures of the law.

    With the not too cordial relationship between the two arms of government due to issues concerning the Comptroller General of Customs, Hameed Ali, the Acting Chairman of the Economic and Financial Crimes Commission, Ibrahim Magu and the Secretary to the Government of the Federation, Babachir David Lawal, the Minister said a committee is already working to smoothen the relationship.

    He said “We must strive at all times to ensure that there is that balance, amity and smooth relationship.

    “Just today at the Federal Executive Council meeting, the issue was discussed and a committee is already working on ensuring that we resolve all these outstanding issues.

    Speaking on the protest by unions in his ministry, Mohammed said that it is not unusual for unions to call for the removal of ministers.

    He said “They are complaining about welfare but there is a limit to what government can do within the available resources.

    “As much as we sympathise with them on the situation, the economy is simply not healthy enough to accommodate what it used to accommodate in the past.

    “If anybody is concerned and worried about expenditures in my ministry, they should go and check because it is open.

    “We have appealed to them several times but we met a culture that we cannot sustain.” he said

    The Minister promised that the Ministry will look into some of the grievances that are genuine when the economy improves.

    “We listen to them, they always meet with the Permanent secretary and directors. But once the resources are not there, there is little we can do. We will just continue to plead with them to be patient with us.” he added

    Dambazzau said that the Council approved the procurement of some water carrying vehicles for the Federal Fire Service.

    He said “This is in an attempt to further revamp the federal fire service which has experienced dearth of equipment for a very long time and that with the challenges we have in terms of fire incidents all over the country, the last time I spoke I told you the government is making every effort to make sure that the fire service is revamped so that we have the necessary euipment, training and personnel to be able to face the challenges.

    “Today as part of it FEC approved what is remaining of the 2016 budget, the procurement of 15 water tankers that have the capacity to be used as fighting trucks. This is costing the government N403 million out of the budget that was appropriated in 2016.

    ‘The totsl budget is about 5.5 billion naira for the procurement of firefighting equipment and we have already procured a lot from that.” he said

    The Minister of Finance, on her part, said that the Council approved the ratification for the establishment of the West African Tax Administration forum which is a platform to promote mutual agreement and cooperation among West African tax authorities.

    While disclosing that Nigeria is the host of the body, she said that Nigeria has already rectified the project.

    She said “The effect of it is that there will be better information sharing and cooperation between countries within West Africa on tax administration. This is really part of our tax reform efforts.

    “As you know Nigerians own properties in Ghana and other neigbouring countries, now for tax purposes they will be able to have access to that type of information.

    “Linked to that is the directive of the FEC to the SGF to remind companies that there is an existing provision in the law that companies are supposed to have on their letter headed papers the names of their directors and their registered offices but what we have seen is that many bodies that are transacting business with government simply have the names of the company and no details of who the directors are.

    “So for tax purposes it is quite difficult to trace them, so the SGF will be issuing a circular reminding agencies and ministries of government that it is the law and therefore they are at liberty not to treat any document that doesn’t comply with the law.

    “And equally the Accountant General is being advised that payment will only be effected to companies that are fully in compliance with the law just to make sure that all those who are doing business with government and making from government are paying the right taxes.

    “The other memo was the 500 million Eurobond, remember that the National Assembly had approved and council was also required to approve and that was done,” she stated.

  • Whistleblowing: Ministry receives 2,351 tips

    The Ministry of Finance, says it has so far received 2,351 tips from whistleblowers bordering on cases of embezzlement of government funds, looting of assets and contract inflation, among others.

    In a statement signed by Mr Festus Akanbi, the Special Adviser, Media to the Minister of Finance, Mrs Kemi Adeosun said the tips came via text messages, calls, email and forms filled on the ministry’s website.

    “We have received 95 feedback through our website, www.whistle.finance.gov.ng, 1,550 tips came through calls on 09098067946 and SMS, 412.

    “Also, 194 people sent us emails on whistle@finance.gov.ng) – 194

    He said that out of the 2,351, the office was currently following up on 154 tips, it had deemed actionable.

    “Some of the tip types include: contract inflation and conversion of government assets to personal use, ghost workers, payment of unapproved funds and embezzlement of salaries of terminated personnel.

    “Also reported include improper reduction of financial penalties, diversion of funds meant for distribution to a particular group of people, especially farmers and diversion of funds to personal commercial Bank Accounts to earn interest.

    “Furthermore, we are following up on cases of non-remittance of pension and NHIS deductions, failure to implement projects for which funds have been provided, embezzelment of funds received from donor agencies and violation of TSA regulations by keeping funds in Commercial banks.

    ” We are also looking into violations of FIRS (VAT) regulation by adjusting Value Added Tax payment, non-procurement of equipment required for Aviation Safety, money laundering and diversion of funds meant for approved projects,” he said.

    Akanbi said that top on the Minister’s agenda, as the Chairman of the Whistleblower programme, was to investigate illegal sale of government assets, diversion of revenue (IGR), concealed bailout funds, Illegal recruitment and violation of procurement Act.

    It will be recalled that late last year, the Federal Government set up the Whistleblower programme to make it easy for the public to give information bordering on violation of financial regulations, mismanagement of public funds and assets and other financial malpractice.

    The Federal Government promised any whistle-blower whose information leads to the recovery of up to N1 billion Naira, five  per cent of the amount.

    While for any amount above N1 billion, up to N5 billion Naira, the whistleblower stands to get  four cent commission, and of any amount over N5 billion, it will attract 2.5 per cent reward.

    However, in the press statement, the Ministry of Finance was silent about how much it has paid to  whistleblowers, whose information led to recovery of looted funds.

  • Paris Club refunds: Why Buhari conceded to states – Adeosun

    Paris Club refunds: Why Buhari conceded to states – Adeosun

    The Minister of Finance, Mrs. Kemi Adeosun, on Monday said President Muhammadu Buhari conceded London-Paris Club loan refunds to states because of the plight of salary earners and pensioners and the need to stimulate the economy.

    She also said the Federal Government has consistently complied with all extant rules and regulations in the disbursement of the Paris Club refunds to state governments.

    She said the President gave an express Anticipatory Approval for the release of up to 50 per cent of each state claim pending final reconciliation.

    Adeosun said her ministry will soon undertake independent monitoring of compliance with the terms and conditions of funds released.

    The minister, who made the clarifications in a statement issued by her Special Assistant on Media, Mr. Festus Akanbi, said further releases to states will not be automatic.

    She said the overriding consideration for any further releases will be the current and projected cash flows of the Federation as well as the outcome of the independent monitoring of the compliance with terms and conditions attached to the previous releases.

    The statement said: “The Minister of Finance has deemed it necessary to address the issue of Paris Club Refunds and wishes to assure the public that the Federal Government has consistently complied with all extant rules and regulations in the disbursement of the Paris Club refunds to state governments.

    “The Federal Government’s disbursement process is transparent and targeted at the attainment of specific economic objectives. The inability of some sub-national governments to meet salary and other obligations was considered inconsonant with the Federal Government’s economic stimulus programme. Claims with regard to over deductions had been made to the Federal Government, consistently since 2005.

    “The Debt Management Office (DMO) initially requested for a period of 22 months to complete the reconciliation and facilitate disbursement.

    “However, President Muhammadu Buhari, considering the plight of salary earners and pensioners and the need to stimulate the economy, directed that the exercise be completed within 12 months.”