The Nation Newspaper

Tag: Minister of Finance

  • FG releases N336bn capital funds to MDAs in Q1

    FG releases N336bn capital funds to MDAs in Q1

    The Federal Government says it has so far released N336 billion to its Ministries, Departments and Agencies for the execution of capital projects in the first quarter of 2017.

    The Minister of Finance, Mrs Kemi Adeosun, in a statement by the ministry’s Deputy Director of Information, Mrs Patricia Deworitshe, said this was however less than the N350 billion she had hopped to release for the quarter.

    Given that N2.18 trillion was earmarked for capital expenditure for the year 2017, it’s third quarter of the year and the Federal Government has a pending balance of N1.84 trillion to release.

    “The Federal Government has, to date, released a total of N336 billion from the 2017 Budget to Federal MDAs for funding of capital projects in the first quarter of 2017.

    “The balance of N14 billion is being processed, pending resolution of some formalities within the agencies concerned.

    “Power, Works and Housing received the largest allocation of N90 billion, followed by Defence and Security which got N71 billion; transport got N30 billion.

    Furthermore, agriculture received N30 billion and water resources got N12 billion.

    Other sectors combined, received a total of N103 billion, she said.

    Adeosun said the priority on the release of available funds was made in accordance with the objectives of the Economic Recovery and Growth Plan (ERGP).

    She said in 2017, the Federal Government would continue to focus on capital expenditure spending on priority sectors to stimulate economic activities and job creation.

    “Despite fiscal constraints, the Federal Government was able to fully cash-back the budgeted capital releases so far made, which is a reflection of the current administration’s commitment to economic development,” the minister said,” she said.

    The 2017 budget is N7.44 trillion with statutory transfer projections of N434. 41 billion, N1.84 trillion for Debt Servicing and N177.46 billion for Sinking Fund from maturing bonds.

    Recurrent expenditure was projected at N2.99 trillion; capital expenditure, N2.18 trillion, and provision of N2.36 trillion was made for fiscal deficit, with deficit to Gross Domestic Product (GDP) put at 2.18 per cent. (NAN)

  • FG uncovers fraud in JAMB, NIMASA, others

    FG uncovers fraud in JAMB, NIMASA, others

    …Moves against agencies not remitting full revenue

     

    The Federal Executive Council meeting chaired by President Muhammadu Buhari on Wednesday directed the Ministry of Finance to immediately recover moneys not remitted to government coffers by some agencies.

    The Minister of Finance, Kemi Adeosun briefed State House correspondents at the end of the FEC meeting.

    She said that some of the government agencies of have been uncovered to be diverting their revenues.

    JAMB, which she said has been remitting N3 million annually, has remitted N5 billion for this year alone and has disclosed that it still has N3 billion more to remit to government purse this year.

    According to her, NIMASA is among other agencies, which are high offenders.

  • Make every Naira count, FG urges agencies

    Make every Naira count, FG urges agencies

    The federal government has urged Government Agencies to recognize the current financial priorities of the nation and cut their costs, eliminate wastages and block revenue leakages.

    Minister of Finance, Mrs. Kemi Adeosun made the appeal at a one day workshop on “Compliance with Fiscal Responsibility Act 2007 (As Amended) and Presidential Executive Order No.002 of 18th May, 2017 held at the Federal Ministry of Finance Auditorium Tuesday for heads of Public Revenue Generating Agencies (PRGA).

    The finance Minister warned agency heads that “under the President Muhammadu Buhari led administration, ‘Every Naira Counts’ and that “whether funds were generated from oil or from fees” the same standard of accountability for public money would apply.”

    Adeosun explained that many agencies were engaged in quasi commercial activities on behalf of government and were therefore expected to manage those organisations in a manner that maximized operating surplus.

    She noted that in other countries like United Kingdom and United States of America, government functions such as VISA processing, Passport issuance, Company Registration and regulation were major revenue earners.

    However, in Nigeria many agencies were operating in such a manner that returned minimal funds to Government.

    Adeosun said the cause of these dwindling revenue include wastage, illegal recruitments, bloated expenses, loans to staff and use of expensive consultants.

    The Minister reminded Agencies that a Circular had been issued which restricted allowable expenses in line with reforms occurring across Government businesses.

    She further informed agencies that compliance checks would be undertaken regularly to ensure that all agencies adhere to the new requirements.

    Adeosun also commended a number of agencies that have improved considerably in their revenue remittance to the Consolidated Revenue Fund (CRF), these include the Joint Admission and Matriculation Board (JAMB) which had remitted over N5 billion and the Nigerian Maritime Administration and Safety Agency (NIMASA) which has significantly improved its remittances.

    She encouraged other agencies to urgently review their operational cost and revenue with a view to increase remittances to Government coffers.

    Adeosun informed the participants that the Ministry of Finance planned to publish the performance of agencies.

    In his address, the Accountant General of the Federation, Ahmed Idris, also advised the Agencies to use Professional Treasury Officers in accounting proceedings to ensure efficiency in line with International Public Sector Accounting.

    Former Accountant General of the Federation, Chief Kayode Naiyeju encouraged heads of agencies to look inward and be more creative in generating revenue for the government.

     

  • FG gives conditions for further support to states 

    FG gives conditions for further support to states 

    …RMAFC designing new sources of revenue for states and LGs

     

    The federal government has warned state and local governments that further financial support to them will be based on how well they implement the 22 Action points of the Fiscal Sustainability Plan (FSP).

    Vice President Yemi Osinbajo made this declaration Monday in Abuja at a workshop organized by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) on alternative sources of revenue generation for sustainable development in states and local government councils in Nigeria.

    Represented by the finance minister Kemi Adeosun, Osinbajo noted that “independent monitoring and evaluation of states against agreed milestones under the FSP, has been conducted and further consideration for support to states, will be solely dependent on reports from this exercise.”

    The Vice President stated that “fiscal discipline, improved revenue generation, rational allocation and efficient use of resources, must be strategies adhered to by every tier of government if we must return to a path of sustainable growth.”

    The 22-Point FSP for states and local governments he said “was introduced and acceded to by states governments in 2016 with the view to enhancing fiscal prudence and transparency in public expenditure, monitoring the ongoing public financial management reforms being undertaken by the federal government.”

    Osinbajo added that the strategic objective 2 of the FSP was focused on improving public revenues, requiring each state to set realistic and achievable targets for improving Internally Generated Revenue (IGR) from all revenue generating activities of the state in addition to tax collection.”

    The idea he said; “was for each state government to look inwards and come up with a plan that was best suited for their states based on available resources.”

    Other action points for the state governments include privatization of state owned enterprises, establishment of efficiency units to reduce overhead expenditures, biometric capture of all civil servants, implementation of continuous audit to reduce revenue leakages and measures to achieve sustainable debt management.

    Earlier in his address, the Acting Chairman of the RMAFC, Alhaji Shettima Umar Abba-Gana, said the commission was designing new additional sources of revenue and ways and means of generating and collecting these revenues for the benefit of the states and local governments.

    He lamented that the challenges of a troubled economy, occasioned by drastic fall in the international price of crude oil, the fall in the level of oil production security challenges and General drop in national productivity negatively affected the inflow of funds into the Federation Account.

    Abba-Gana expressed optimism that in due course, the over dependence on statutory transfers of funds from the Federation Account for governance by the states and local governments will begin to reduce.

     

  • Whistleblower policy: FG revising recruitment procedure, says Adeosun 

    Whistleblower policy: FG revising recruitment procedure, says Adeosun 

    Following the commendable actions of whistle blowers in recent times to recover stolen monies, the federal government says it is revising its procedure for approval of recruitment.

    Minister of finance, Mrs Kemi Adeosun made this disclosure in Abuja Tuesday at a seminar on “The whistle blower policy and its implication for public servants” organized by the Bureau of Public Service Reforms (BPSR).

    According to Adeosun, “we are revising our procedures for approval of recruitment, which will improve our budgeting and control.”

    She stated that government’s “work is to analyse trends and take corrective actions. For example many of the salary, tax and pension under remittance cases shared a common thread. Several cases where Institutions were found to have insufficient funds to meet there obligations often had illegal recruitments which bloated the wage bill and agencies responded by part paying or short paying salaries, whilst applying to FG for salary shortfall payments.

    The finance minister also noted that “in many cases where revenue has been diverted to accounts outside TSA, we have reviewed our reconciliation and receipting processes. So the information being provided is useful in driving process improvements.”

    Adeosun stated that much of the success of the whistleblower policy has relied on the decision of the whistleblower to do the right thing.

    She then revealed that “of the 365 actionable tips we have received, over half of them have come from public servants touching on issues such as contract inflation, ghost workers, illegal recruitments, misappropriation of funds, illegal sale of Government assets, diversion of revenues, and violation of TSA regulations, amongst others.”

    In reviewing the information, the federal government she said has received and noticed “that certain type of tips are recurring, for example; 39% (144) of the actionable tips relate to misappropriation and diversion of funds/revenue, 16% (60) relate to ghost workers, illegal recruitments and embezzlement of funds meant for personnel emolument, 15% (56) relate to violation of TSA regulation, 13% (49) relate to contract inflation/violation of the procurement act and failure to carry out projects for which funds have been released and 9% (34) relate to non-remittance of pension & NHIS deductions. Others include concealed bail-out funds and embezzlement of funds from donor agencies.”

    Overall, the volume of tips received Adeosun said “has been greater and of higher quality than expected when the programme was first adopted. We continue to receive information every day with total communication reaching above 5,000 in July through our various reporting channels.”

    Adeosun assured civil servant who “have information about a possible misconduct or violation that has occurred, is on-going, or is about to occur, we implore you to come forward and report it. You can submit your information anonymously and confidentially through the online portal, by email or by phone and if you choose to disclose your identity, I assure you that it will be fully protected. All information you provide will be reviewed, analysed and referred to be treated either administratively or criminally, through the investigative agencies.”

    If for any reason after a civil servant has made a disclosure, “you feel that you are being treated badly because of your report, you can file a formal complaint through the same confidential channels and the matter will be dealt with immediately with the seriousness it deserves. Also, where you have suffered harassment, intimidation or victimisation for sharing your concerns, the whistleblower policy makes provision for restitution of any loss suffered” the minister said.

    She further assured potential whistleblowers that “the risk of corruption is significantly heightened where the reporting of wrongdoing is not supported or where those who report wrongdoing may be subject to retaliation, such as intimidation, harassment, transfer, dismissal or violence by their fellow colleagues or superiors.

    The protection of public sector whistleblowers from retaliation for reporting in good faith is therefore, integral to our effort to combat corruption, safeguard integrity, and enhance accountability.”

    These she said “are not just words, as you must have heard, the Senate recently passed the Whistleblower Protection Bill which gives a whistleblower, protection under the laws of Nigeria. This is a great step in the right direction in our fight against corruption”.

    Adeosun noted that “the reward scheme has also acted as an incentive for disclosures – a whistleblower is entitled to between 2.5% and 5% of the amount recovered if the information provided is original and directly leads to the recovery of stolen or concealed funds or assets. Even in the payment process we have built in protection to ensure that whistleblowers identity remains confidential and that bank and other details cannot be used to trace information providers.”

    However she cautioned that, “balance is necessary in every policy and you will note that as keen as we are for officers to provide information, there are serious consequences for providing false or malicious information including the possibility of prosecution. We must ensure that people are not victims of personal grudges or private misunderstandings.”

    Government she said recognises “that whistleblowing alone is not a solution to corruption; it is one of the tools that can improve governance in the public service. In line with ensuring that government continues to build the right capacity and follow best practice, the Whistleblower Unit consisting of representatives from the various investigative agencies, is expected to go on a study tour to Australia to understand how they have been able to successfully implement the policy.”

    Government she added “will continue to evolve and improve on the programme based on our experiences and learnings from other jurisdictions.”

     

  • Nigeria, Singapore agree to protect investors from double taxation 

    Nigeria, Singapore agree to protect investors from double taxation 

    The Nigerian and Singaporean governments have agreed to protect their respective investors from double taxation.

    As a result of this agreement, the volume of trade between both countries from 2011 to 2015 which stands at N 846 billion is expected to increase significantly.

    The agreement was sealed in Abuja Wednesday evening at the Ministry of Finance and it was witnessed by top officials of both countries.

    The Minister of Finance, Mrs Kemi Adeosun, in her comments said the pact between Nigeria and Singapore has clearly spelt out taxing rights of each country in respect of different income derived from each country.

    The agreement according to Adeosun “will assist prospective investors know their income tax obligation in the other country as well as available tax incentives; and spells out clearly tax jurisdiction of each country in respect of all possible areas of business activities which give rise to taxation.”

    Adeosun stated that the negotiation of the avoidance of double taxation agreement between both countries was held in Singapore from 28th to 30th October 2013 and was concluded in October 2014, after all outstanding issues had been resolved.

    The Federal Executive Council at its meeting of November 16, 2016, approved the content of the agreement and authorized Adeosun to sign the agreement on behalf of Nigeria, following the resolution of all outstanding issues.

    Singapore was identified as a suitable tax treaty partner for Nigeria because it is currently one of the fastest growing economies in the world with a highly developed and successful free-market economy.

    The volume of trade between the two countries from 2011 to 2015 stands at N846 billion, the absolute Balance of Trade was N222 billion in favour of Nigeria while Balance of Trade net of petroleum export stood at N42 billion in favour of Singapore. In terms of the volume of Foreign Direct Investment from Singapore to Nigeria, Adeosun said between 2010 and March 2015 the figure stood at $908.8 million.

    Some of the areas of economic cooperation between Nigeria and Singapore are consumer electronics, information technology products, pharmaceuticals and medical technology products, and financial services, among others.

    Adeosun signed the agreement on behalf of the Federal Government, while Singapore’s Minister of State for Trade and Investment, Dr Koh Poh Koon signed for his country.

    In his comments at the event, the Singaporean trade minister said that “the agreement would send a strong signal to investors from both countries about the commitments of the two countries to stimulate investments.”

    He prayed “that both governments will happily ratify both agreement so that it sends a strong signal to business communities from both sides that both our governments are committed to ease of doing business. This will enable companies to be able to look at investments from both sides with seriousness.”

    Adeosun said “this treaty with Singapore is important because it is consistent with Nigeria’s on-going efforts to expand its treaty network.”

  • FEC okays N3.38 billion loan for Plateau potatoes 

    FEC okays N3.38 billion loan for Plateau potatoes 

    The Federal Executive Council (FEC) on Wednesday approved N3.38 billion Africa Development Bank (ADB) loan for cultivation of potatoes in Plateau State.

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

    According to her, the state government will also contribute N599 million counterparts funding.

    Stressing that about 60,000 jobs will be created from the potatoes value chain; she said that 17 local governments in the state will benefit from the project.

    A strong monitoring team, she said, will be in place to ensure the loan is judiciously used.

    Details Later…

  • New Paris Club refund: What each state recieved

    New Paris Club refund: What each state recieved

    The federal government has released a State by State breakdown of another tranche of Paris Club refund of over-deductions on Paris Club, London Club Loans and Multilateral debts on the accounts of States and Local Governments from 1995-2002.

    A statement from the federal ministry of finance said these payments which totalled N243, 795,465,195.20 “were made to the 36 states and the Federal Capital Territory upon the approval of the President on May 4, 2017.”

    Akwa-Ibom, Bayelsa, Delta, Kano and Rivers states received the largest disbursements of N10 billion each.

    This second tranche of Paris Club refunds is a “partial settlement of long-standing claims by State Governments relating to over-deductions from their Federation Account Allocation Committee (FAAC) allocation for external debt service arising between 1995 and 2002.”

    The statement added that Minister of Finance, Mrs. Kemi Adeosun explained that these debt service deductions were in respect of the Paris Club, London Club and Multilateral debts of the federal and State governments.

    Adeosun noted that “while Nigeria reached a final agreement for debt relief with the Paris Club in October 2005, some States had already been overcharged.”

    The funds were released to State Governments as part of the wider efforts to stimulate the economy and were specifically designed to support states in meeting salary and other obligations, thereby alleviating the challenges faced by workers.

    The releases the ministry said “were conditional upon a minimum of 75 per cent being applied to the payment of workers’ salaries and pensions for States that owe salaries and pension.”

    The Federal Ministry of Finance said it “is reviewing the impact of these releases on the level of arrears owed by State Governments.”

    A detailed report is being compiled for presentation to the Acting President, Professor Yemi Osinbajo, as part of the process for approval for the release of any subsequent tranches.
    The disbursements are contained in the table below:

     

    S/N STATE AMOUNT PAYABLE (NGN)
    1 ABIA 5,715,765,871.48
    2 ADAMAWA 6,114,300,352.68
    3 AKWA-IBOM 10,000,000,000.00
    4 ANAMBRA 6,121,656,702.34
    5 BAUCHI 6,877,776,561.25
    6 BAYELSA 10,000,000,000.00
    7 BENUE 6,854,671,749.25
    8 BORNO 7,340,934,865.32
    9 CROSS RIVER 6,075,343,946.93
    10 DELTA 10,000,000,000.00
    11 EBONYI 4,508,083,379.98
    12 EDO 6,091,126,592.49
    13 EKITI 4,772,836,647.08
    14 ENUGU 5,361,789,409.66
    15 GOMBE 4,472,877,698.19
    16 IMO 7,000,805,182.97
    17 JIGAWA 7,107,666,706.76
    18 KADUNA 7,721,729,227.55
    19 KANO 10,000,000,000.00
    20 KATSINA 8,202,130,909.85
    21 KEBBI 5,977,499,491.45
    22 KOGI 6,027,727,595.80
    23 KWARA 5,120,644,326.57
    24 LAGOS 8,371,938,133.11
    25 NASARAWA 4,551,049,171.12
    26 NIGER 7,210,793,154.95
    27 OGUN 5,739,374,694.46
    28 ONDO 7,003,648,314.28
    29 OSUN 6,314,106,340.62
    30 OYO 7,901,609,864.25
    31 PLATEAU 5,644,079,055.41
    32 RIVERS 10,000,000,000.00
    33 SOKOTO 6,441,128,546.76
    34 TARABA 5,612,014,491.52
    35 YOBE 5,413,103,116.59
    36 ZAMFARA 5,442,385,594.49
    37 FCT 684,867,500.04
    TOTAL 243,795,465,195.20

     

  • 2017 Budget: FG to release N350bn in first tranche

    2017 Budget: FG to release N350bn in first tranche

    In conformity with plans for targeted release of funds under the 2017 national budget, the Federal Government is about to release N350 billion to Ministries, Department and Agencies ( MDAs) for towards execution of capital projects under the 2017 budget, Minister of Finance, Mrs. Kemi Adeosun has said.

    Speaking during an interactive session that preceded the official  public presentation of 2017 Appropriation Act organized by the  Budget Office and Ministry of Budget and National Planning in Abuja on Monday, Adeosun stated that after a scheduled cash-plan meeting, the Federal Government is to release the N350 billion and funds for other key projects and initiatives.

    At the event where the Minister of Budget and National Planning, Senator Udoma Udo Udoma gave details of the national budget, the Minister of Interior, Abdulrahaman Danbazzau   later told newsmen of plans to form a special squad that would tackle the challenges posed by herdsmen.

    Giving details of plans for the implementation of this year’s national budget, Senator Udoma stated that targeted funding of projects would be done with the Project-Based Release System in order to curb waste of public funds by MDAs while evidence of compliance with the Bureau of Public Procurement Act is now part of compulsory requirements before approval of any capital release.

    Also, all MDAs have been prohibited from unilateral endorsement of any foreign currency denominated contract without the approval of the Ministers of Finance and that of Budget and National Planning.

    Udoma who said that the 2017 budget would run from this month to  June next year also stated that the Federal Government would strengthen its monitoring and evaluation framework to improve physical inspection and impact assessment of projects and programmes implemented by MDAs .

    However, consultations are being made between the executive and the National Assembly towards going back to the January to December implementation of budgets with effect from next year’s budget.

    The 2017 budget has an expenditure outlay of N7.44 trillion, representing an increase of 22.8% over the 2016 budget provision of N6.06 trillion.

    Statutory transfers make up N434.41 billion ,  debt service of N1.66 trillion; sinking fund to retire certain maturing bonds is N177.46 billion.

     

    Also, non-debt recurrent expenditure is to take N2.99 trillion while capital expenditure, inclusive of statutory transfers has N2.36 trillion.

    The budget’s overall projected budget fiscal deficit is N2.36 trillion, which is about 2.18% of GDP – a point which the Minister described as being well within the 3%  stipulated threshold.

    The budget includes recurrent non-debt expenditure of N2.99 trillion made up of: Personnel costs – N1.88 trillion (63%) overhead – N219.84 billion (7%), services wide vote pensions – N89.98 billion (3%) Consolidated Revenue Fund Pensions – N191.63 billion (6%).

    According to Udoma, the 2017 budget will be financed “mainly by borrowings which have been projected at N2.32 trillion. Of this amount, N1.07 trillion (46% of this borrowing) is intended to be sourced externally, while N1.25 trillion will be sourced domestically. The debt service to revenue ratio is projected to be about 32.7% in financial year 2017” .

    “In terms of implementation of the budget, we are making strenuous efforts to find the resources required. We are challenging our revenue generating agencies, particularly the FIRS and Customs, to improve their efficiencies and broaden their reach so as to achieve the targets set for them in the 2017 budget”.

    “Most importantly, we will strive to maximize the revenues we can generate from the oil and gas sector as it is clear that the foreign exchange generated from the sector is critical for our plans to diversify to the non- oil sectors. While we are introducing creative measures to improve on the efficiencies in that sector to increase Government’s take, we are also engaging more extensively with the communities and people of the Niger Delta to minimize disruptions to oil production”.

    “We are also working on the ERGP Implementation Plan (ERGP-IP) which will  guide the implementation  of the 2017 budget as well as other budgets over the medium term. It is my expectation that as we remain strategic and bold in our implementation process we will achieve the objectives set out in the ERGP”, Udoma stated.

    He also emphasized Federal Government’s concerns over the prevalence of abandoned Federal projects all over the country, adding that government hopes to tackle this through the strengthening of its monitoring and evaluation· framework· to improve· physical inspection· and impact· assessment· of projects and programmes implemented by MDAs .

    “We are worried and concerned about the number· of abandoned capital· projects scattered in their thousands throughout the country, which we inherited from previous administrations.

    “We know· that you can’t continue· doing things the same way· and expect· different result, so we have to do things differently.

    “We need to have· more targeted releases; we have to look at the projects which are important and can easily be completed.

     

    “The ministers are working together to ensure· that over time, we concentrate our resources on completing important projects, so that we have maximum impact,, ’’ he said .

    Officials at the public presentation of the 2017 Appropriation Act include the  Minister of Interior Abdulrahaman Danbazzau, Minister of State for Budget and National Planning Mrs. Zainab Ahmed, Director General, Budget ,Mr.Ben Akabueze ; Minister of Foreign Affairs  , Geoffrey  Onyeama and the Minister of Health, Dr.Isaac Adewole.

    Meanwhile, the Minister of Interior, Abdulrahaman Danbazzau   explained that the 3, 000 strong special squad being constituted to address the menace of herdsmen would comprise personnel from the National Security and Civil  Defence (NSCDC).

    Dambazau stated that the special unit is to be saddled with the task of protecting the public against herdsmen attack.

    He said the idea of having such important unit was mooted some months ago stating that, about 3,000 NSCD personnel had been selected to undergo special training.

    He also expressed his conviction that many of the herdsmen threatening the peace and order within the country are from other countries, especially within the ECOWAS sub-region.

    According to Dambazau, Nigeria and other countries that are signatories to the ECOWAS protocol which guarantees free movement of citizens have a responsibility to find ways to monitor the movement and activities of itinerant herdsmen.