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Tag: Mrs. Kemi Adeosun

  • 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.”

  • 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

     

  • New Paris Club refund: Workers, pensioners hopeful

    New Paris Club refund: Workers, pensioners hopeful

    States have received another tranche of the Paris Club refund, it was learnt yesterday.

    Ekiti, which got N9.5 billion in the first tranche, has received another N4.772 billion; Abia got N5.715 billion. The state received N11.4 billion in the first tranche. Governor Ayo Fayose’s Media Adviser Lere Olayinka confirmed Ekiti’s receipt of the second tranche. Commissioner for Finance Obinna Oriaku confirmed that of Abia.

    But the total amount paid out by the Ministry of Finance could not be confirmed last night. Top officials of the ministry said they were waiting for clearance from Minister of Finance Mrs Kemi Adeosun before giving out that information.

    President Muhammadu Buhari initiated the refund to enable states to meet their financial obligations, especially to workers and pensioners.

    In the first tranche, a total of N516 billion was released to the 36 states and the Federal Capital Territory (FCT). The Ministry of Finance spokesman, Salisu Dambatta, in a statement after the release of the cash, said:  “The debt service deductions are in respect of the Paris Club, London Club and Multilateral debts of the Federal Government and states.

    “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 were conditional upon a minimum of 50 per cent being applied to the payment of workers’ salaries and pensions.

    Oriaku said what Abia got was lower than the N11 billion to N12 billion it was expecting. He added, however, that Governor Okezie Ikpeazu had directed that despite “the shortfall, the funds should be committed wholly to salary arrears”.

    He said the state could no longer meet up with its promise to clear all arrears of wages at the end of this month because of the reduction in its entitlement.

    The shortfall, the commissioner said, would impact on the government’s plan to clear outstanding salary arrears as promised by the governor.

    Oriaku said labour leaders were informed of the development at a meeting yesterday, adding: “Despite the shortfall, Governor Ikpeazu has instructed that the funds be committed wholly to salary arrears”.

    He said the committee of government officials and labour leaders that shared the first tranche would also share the second tranche, adding that areas that needed more attention would be given priority.

    According to him, Ministries, Departments and Agencies (MDAs) workers were owed one month salary. Some agencies’ workers are owed much more, he added.

    State NLC Chairman Uchenna Obigwe expressed concern over the development saying workers and pensioners were full of expectations.

    Obigwe said they learnt from their colleagues in other states that the state that got the highest amount got N6 billion.

     

  • Minister: Fed Govt’s assets adequately insured

    Minister: Fed Govt’s assets adequately insured

    The Federal Government will consolidate on the progress it has made in the insurance sector by ensuring that all of its assets are adequately insured, Finance Minister Mrs Kemi Adeosun has said.

    She spoke yesterday at the ongoing National Insurance Conference in Abuja.

    The minister said foreign investors have shown great interest in the insurance sector by entering into the market and progress can be seen in the introduction of new insurance products in the mortgage and housing sector.

    She said there has also been a high level of ownership of insurable assets  despite the economic situation.

    Mrs Adeosun said: “We expect that industry reforms will continue to drive investments and new market entry.

    “Insurance plays a critical role in economic development by fostering economic growth and investment. It facilitates investment, by reducing the amount of capital that businesses and individuals need to keep at hand to protect themselves from uncertain events.

    “While the insurance industry has evolved with premiums growing from about N75 billion in 2005 to over N300billion today,it contributes approximately 0.7per cent to GDP.

    “There are currently about three million policyholders in Nigeria out of a population of 180 million people.This means that there is a lot more potential to increase the number of policyholders.

    “Through insurance, relatively small premiums from millions of policy holders, can create a pool to support long-term financing for our economic growth. We must be willing to expand the insurance market beyond the upper class and formally employed market, to the middle and lower income market.

    “The focus for insurance going forward, must integrate both corporate and individuals.

    The uptake of insurance products could facilitate asset formation and wealth creation over the longer-term.Many individuals take out insurance to cover life, education plans for their children, endowment, and investment savings.”

    In his welcome address, Commissioner for Insurance, Mohammed Kari said the theme: Nigeria Open for Business is a subject which has been used as a political statement of intent until the coming of the present administration which has turned it into a calculated strategy of governance that has made simplification of during business a reality.

    He stated that if the dream to make Nigeria easy for business is to be realised, then the way financial regulation is constituted in Nigeria need an urgent review.

    He pointed out that operators in most sectors are regulated by up to three and sometimes four financial regulators, with multiple requirements to each and in most cases similar and with either or options, which defeats the regulatory norm of specific oversight in financial regulation.

    He said most irritating is the multiple penalties that may arise from the same infraction noting that regulators now are even venturing into other sectors, usurping the role of other regulators without due regard to the established laws.

    Kari urge the Mrs Adeosun to challenge the Financial Services Regulatory Coordinating Committee (FSRCC) to revisit the Financial System Strategy 2020 (FSS 2020) and within a given time, come up with a proposal on the future of financial regulation in the country.

  • 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.

     

  • N17billion: Reps summon Adeosun, Okonjo-Iweala, others

    N17billion: Reps summon Adeosun, Okonjo-Iweala, others

    Finance Minister Mrs. Kemi Adeosun and her predecessor, Ngozi Okonjo-Iweala, have been summoned to appear before the House of Representatives over alleged abuse and breach of the Procurement Act, 2007.

    The House Committee on Public Procurement, which invited the ministers, directed that they should appear before it today.

    Others expected to appear before the committee are: former Head of Service (HoS) Mr. Steve Otunla and former Accountant-General to the Federation (AGF) Mr. Jonah Otunla.

    The committee had on Thursday summoned Adeosun and some others over alleged payment of N17 billion to five firms believed to be ghost companies as consultancy fees.

    The committee, in an investigative hearing yesterday in Abuja, said that summoning the top officials was to ensure proper investigation. (more…)

  • Violation of Procurement Act: Adeosun, Okonjo-Iweala, others to appear before Reps

    Violation of Procurement Act: Adeosun, Okonjo-Iweala, others to appear before Reps

    Finance Minister, Mrs Kemi Adeosun and her predecessor, Ngozi Okonjo-Iweala, have been summoned to appear before the House of Representatives over alleged abuse and breach of the Procurement Act, 2007.

    The house’s Committee on Public Procurement, which invited the ministers, directed that they should appear before it on Tuesday.

    Others expected to appear before the committee are former Head of Service (HoS), Mr Steve Otunla and former Accountant-General to the Federation (AoGF), Mr Jonah Otunla.

    The committee had on Thursday summoned Adeosun and some others over alleged payment of N17 billion to five firms believed to be ghost companies as consultancy fees.

    The committee in an investigative hearing on Monday in Abuja said that summoning the top officials was to ensure proper investigation.

    Chairman of the Committee, Rep. Oluwole Oke (Osun-PDP), who issued the order inviting the officials, read the Riot Act to all Ministers and Accounting Officers of Ministries, Departments and Agencies (MDAs).

    He said “the shortest way to Kuje prison is through breach of procurement laws.”

    Worried at the slow pace of the investigative hearing due to the poor attitude of civil servants towards releasing of vital documents, the committee attended to only those who made available necessary documents.

    The members decried the discrepancies between the submissions made by Federal Ministry of Finance and Central Bank of Nigeria (CBN).

    They observed that out of the 12 pre-shipment Inspectors and two monitors, who benefited from the N17 billion, seven were appointed in line with due process while five were appointed through the back door.

    Oke call for overhaul of the entire process.

    He pointed out that a former governor of Bauchi State and a former member of the House of Representatives, who were part of those who promulgated the procurement law were sentenced to five years imprisonment for infractions.

    He added that a former Chairman of Nigeria Ports Authority (NPA) was also sentenced to two years imprisonment for breaching the Procurement Act “before the Supreme Court intervened’’.

    The chairman advised the invited stakeholders to bring before the committee Presidential Approvals, Letters of Awards, Agreements signed with the contractors and performance records.

     

  • Fed Govt slams higher interest rate on tax debtors

    Fed Govt slams higher interest rate on tax debtors

    The Federal Government has approved a new interest rate spread on unpaid taxes for this year.

    The new interest rate was approved by the Minister of Finance, Mrs. Kemi Adeosun.

    According to the Minister, the new interest rate shall be five per cent over the Central Bank of Nigeria (CBN’s) Minimum Re-Discount Rate (MRR) for the year.

    She explained that Section 32(1b) of the Federal Inland Revenue Service (Establishment) Act 2007 empowers her to approve the new interest rate.

    Adeosun has therefore directed the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Tunde Fowler to commence the implementation of the new interest rate on all unpaid taxes from July 1, 2017.

    The minister said the review of interest rates on unpaid taxes was one of the necessary measures adopted by the Federal Government to enhance tax compliance, minimise evasion and deter late payments.

    “Majority of Nigerian tax payers (PAYE) have taxes deducted automatically. However, those who do not and are required to file their taxes like companies and business enterprises, must understand that there are financial consequences for late payments.

    “This will support our efforts to ensure that people pay their taxes promptly, thus providing a sustainable source of revenue to the government to finance infrastructure and other projects,” Mrs. Adeosun said.

    Mrs Adeosun had, during the Finance Ministers’ meeting convened by the G24 Group at the 2017 International Monetary Fund (IMF)/World Bank Spring meetings in Washington, stressed the need for the country to embark on aggressive tax revenue generation in order to drive economic growth.

    She had emphasised that with a tax to GDP ratio of only six per cent, one of the lowest levels in the world, the country had to intensify effort at tax collection in order to build a sustainable revenue base that will deliver inclusive growth.

    She stated that the focus of the federal government in 2017 was to improve tax revenue through ensuring voluntary compliance with tax laws.

  • FG approves higher interest rate on unpaid taxes

    FG approves higher interest rate on unpaid taxes

    The Federal Government has approved a new interest rate spread on unpaid taxes for the year 2017.

    The new interest rate was approved by the Minister of Finance, Mrs. Kemi Adeosun.

    According to the Minister, the new interest rate shall be 5% over the Central Bank of Nigeria’s Minimum Re-Discount Rate (MRR) for the year 2017.

    She explained that Section 32(1b) of the Federal Inland Revenue Service (Establishment) Act 2007 empowers her to approve the new interest rate.

    Adeosun has accordingly directed the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Tunde Fowler to commence the implementation of the new interest rate on all unpaid taxes from July 1, 2017.

    The minister said the review of the interest rates on unpaid taxes was one of the necessary measures adopted by the federal government to enhance tax compliance, minimize tax evasion and deter late payments.

    According to Adeosun, “majority of Nigerian tax payers (PAYE) have taxes deducted automatically. However, those who do not and are required to file their taxes like companies and business enterprises must understand that there are financial consequences for late payments.”

    She added that “this will support our efforts to ensure that people pay their taxes promptly, thus providing a sustainable source of revenue to the government to finance infrastructure and other projects.”

    It could be recalled that Mrs. Adeosun had, during the Finance Ministers’ meeting convened by the G24 Group at the 2017 IMF/World Bank Spring meetings in Washington, stressed the need for Nigeria to embark on aggressive tax revenue generation in order to drive economic growth.

    She had emphasized that with a tax to GDP ratio of only six per cent, one of the lowest levels in the world, the country had to intensify effort at tax collection in order to build a sustainable revenue base that will deliver inclusive growth.

    She stated that the focus of the federal government in 2017 was to improve tax revenue through ensuring voluntary compliance with tax laws.

     

  • Governor builds hotel with $3m Paris Club refund cash

    Governor builds hotel with $3m Paris Club refund cash

    Cash lodged in Rep’s account through proxy

    EFCC places restriction on NGF’s N8b, $80m

    Detectives have traced $3million of the controversial London-Paris Club loan refund to a governor, The Nation learnt on Thursday.

    The cash is believed to be part of the N19billion illegally deducted from the refund by the Nigeria Governors Forum (NGF), according to Economic and Financial Crimes Commission (EFCC) sources.

    The cash has been found in the account of a member of the House of Representatives who got it through a  proxy, the lawmaker’s brother. Both were not available for comments. The  $3million is being spent on building a 100-room hotel in Lagos, which the governor may forfeit to the Federal Government.

    Also, the EFCC has placed a restriction on N8billion and $80million in the naira and dollar accounts of the NGF.

    The Presidency has released N1. 266.44trillion to the 36 states in the past one year. The cash includes N713.70billion special intervention funds to states.

    Following protests by states against over deduction for external debt service between 1995 and 2002, President Muhammadu Buhari had approved the release of N522.74 billion (first tranche) to states as refund pending reconciliation of records.

    Each state was entitled to a cap of N14.5 billion being 25% of the amounts claimed.

    Finance Minister Mrs. Kemi Adeosun said the payment would enable states to offset outstanding salaries and pension which had been “causing considerable hardship”.

    The governors sought for the refund to states and local governments at a meeting with President Buhari on May 24, last year.

    A source, who spoke in confidence with our correspondent, said: “The EFCC is still investigating the N19billion allegedly diverted from the loan refund. The commission has so far interrogated 15 companies, more than 10 individuals and over eight bureaux de change used to divert the cash.

    “The latest bend of the investigation is the discovery of $3million linked with another governor who benefited from the illegal deduction. The governor had engaged a member of the House of Representatives(who was also a former commissioner) to launder his share.

    The lawmaker was said to have wired the $3million into his brother’s account before moving it into his own. Upon interrogation,  one of the suspects admitted that the cash was for the ongoing construction of a 100-room hotel for the governor.

    “About $500,000 of the $3million has been recovered by the EFCC. It is a scam in which many people benefited and a sizeable number of proxies used to launder the funds,” the source said.

    The $3million was transferred to the lawmaker for the governor from the $86million in the NGF’s domiciliary account.

    “We will do our best to recover the already diverted part of the $3million. We may also apply for the forfeiture of the hotel to the Federal Government,” the source said, pleading not to be named so as not to jeopardise the investigation.

    The $86million is said to be for the payment of consultants who worked for the refund for the 35 states. But none of the consultants has been paid. Some of them have already gone to court.

    The source added:  “The EFCC has placed a Post No Debit restriction on the NGF’s  account with N8billion and domiciliary account with $80million.

    “Out of the $86million, $3million was wired to the governor through a proxy and another $2million shared out.

    “The EFCC is ready to lift the restriction on the two accounts of the NGF on  a condition that the consultants and legal advisers who deserve to be paid will be given what they are entitled to in line with the agreement signed with the NGF.

    “We want the NGF to involve the EFCC in the disbursement to avoid another diversion of the cash. As it is now, consultants and legal advisers are complaining that they are being shortchanged by the governors.”

    The EFCC had earlier traced about N500million, which was meant for a consultant, to the account of a governor.

    The cash has been retrieved.