The Nation Newspaper

Tag: National Economic Council (NEC)

  • NEC orders audit of ecological funds

    NEC orders audit of ecological funds

    …FG saves N17 billion through Efficiency unit

     

    The National Economic Council (NEC) chaired by Vice President Yemi Osinbajo on Thursday ordered full scale investigation of the ecological funds.

    Governors at the meeting believed that the handling of the fund had not been transparent.

    According to them, rather than growing, the ecological fund has shrunk to N33.6 billion.

    Briefing State House correspondents at the end of the NEC meeting, Anambra State Governor, Willie Obiano, said that a committee has been set up to investigate the situation.

    He was in the company of his Plateau State counterpart, Simon Lalong and the National Security Adviser (NSA), Babagana Monguno.

    Obiano said that the governors of Oyo, Borno, Imo, Kaduna, Anambra, Akwa Ibom, Benue States Ministers of Finance and Environments were members of the committee.

    According to him, it was necessary to know the balance of the ecological funds.

    He said: “At the 76th meeting of NEC held today, the following resolutions were arrived at. First on the natural resource funds and ecological fund. The Accountant-General of the federation briefed the council on the natural resource and ecological funds as follows:

    “Natural resource funds balanced as at 31 March 2017 was N70.9 billion. Ecological balance as at that date was N33.6 billion. States and Local governments now keep their share of resource and ecological funds for use as the need arises in their respective jurisdictions.

    “Council decided that an audit of ecological funds be carried. Adhoc committee comprising of Oyo, Borno, Imo, Kaduna, Anambra, Akwa Ibom, Benue and Ministers of Finance and Environments have been set up to do the audit and come up with recommendations on how all the funds shall be managed.

    “The reason for the audit is to look at the balance. The actual word isn’t to audit it but to reestablish that the balance is the correct balance because it’s been standing like that for a couple of months. We will address that and the committee will brief NEC at the next meeting.” he added

    The Council, he said, also took briefings from the Minister of Finance, Kemi Adeosun, on the Paris Club refunds.

    He disclosed that the Excess Crude Account also stood at $2.2 billion as at 26th April, 2017.

    He said “Hon minister of Finance gave an update on the disbursement of Paris and preparation for the next round of payments to the state after the first disbursement. Governors expressed appreciation to the president for the previous disbursement of the funds and noted that their expectation for the next round of refund from the federal government to the states.

    “The Hon. Minister of Finance told council that the balance in the Excess Crude acct as at April 26, 2017 stands at 2.2billion USD.

    “Operation of the Efficiency unit under federal ministry of finance made presentation to council on the operations of the Efficiency unit in the Ministry of finance. She informed Council that the Unit has been able to save the federal government a whopping sum of N17 billion since it was established.

    “The council appreciated and urged States to also establish efficiency units in order to enhance systems that will improve efficiency to discuss and bloc leakages in line with the physical sustainability plan”, Obiano said.

    Lalong said that Vice President Osinabjo briefed Council on the progress so far recorded by the social investment programme.

    He also dispelled the beliefs in some quarters that the payment of Paris refunds to the states was favour to them.

    The refund, he said, was money taken from the states some years ago.

    He said that the real reason for the probe of ecological funds was to ascertain the true situation of the money.

    According to him, many states had applied but were denied the fund.

    He said: “The Vice president updated council on the progress of four of the Social Investment Plan of the administration. Mainly, the N-power, Conditional cash transfer, Home grown school feeding programme and the government economic and empowerment programme for micro credit.

    “Council was also briefed on certain impediments and programme implementation delays noticed in the federal government or state government collaboration and resolve to end such obstacles.

    “Council therefore resolved to upgrade the state coordination unit in federal government SIPs to the governors office for better and more effective federal government/ state collaboration.

    “Talking about salaries and the Paris club, I don’t think those were really the reasons given to the governors for the delays in payment of the Paris club. We understand the President has approved the payment of the Paris club. The first tranche came. We are waiting for the second tranche before the president went out for medical treatment.

    “What we are complaining is the delay that we have not received the second tranche after the application. Let it not be seen as if the Paris club is a favour done to state. These are money belonging to states. So, what we are saying is that it is illegally taken about 12 years ago.

    “So, we are only asking that the money be refunded to us. When the first tranche was given, that’s why we are getting out of the recession today. That’s what made some states to pay salaries. We thank the president for doing that. So, let it not be seen as if governors are rushing for it. Political opponents, I am sure, they are the ones talking about it.

    “Some people will not want governors to receive the Paris club refunds at this time because they believe that if we take it, we will all pay salaries, go on with projects and then you are talking of second or third term. I don’t think that is the reason. For us governors, what we want is the judicious use of the Paris club as we did for the bail out funds.

    “Our concern is that many states that have applied for ecological funds. It appears that in the last one or two years, no state has been given ecological funds. There is a purpose for ecological fund and if we are not given and we suspect that instead of moving forward or staying static, the ecological is dwindling, it is going down. Then, it means that someone else is using it. That’s why governors say no, let’s audit and see what is happening to it and go according to the procedure. If you fulfill the procedure, you get it.

    “Unlike what happened in the last administration where the ecological funds were disbursed on the basis of political loyalty. In this regime, it is not like that. So, it is a procedure we are following. That was what compelled council to take a decision to audit the account to know what has happened to it and then we know the process that will follow.” he added

    He said that the Council was also given updates on meningitis, noting that about N46.7 billion was required to vaccinate the affected population.

    “There was also updates on meningitis. The Minister of Health made a presentation to the council on the updates of meningitis outbreak as follows: That there have been 9646 suspected cases of meningitis affecting 6 States in the country, namely: Zamfara, Katsina, Sokoto, Niger, Kebbi and Kano. As at April 25, 2017, about 767 deaths had occurred representing 9 percent of the infested population.

    “About N46.7 billion is required to vaccinate the valuable population. Council expressed grave concern over the ravaging meningitis epidemic in parts of the country and advised the Federal Ministry of Health to intensify interventions to contain the embarrassing epidemic while advocating for increased funding for health.

    “Finally, the minister in his presentation called for the establishment of National Health Emergency Fund to be domiciled in the presidency under the supervision of the National Economic Council chairman,” he said

    The National Security Adviser, Babagana Monguno said that he briefed Council on the general security situation in the country.

    He said “I was called upon for NEC to give them an update on the general security in the country. Basically, my brief dwelt in the prevailing situation between cattle rustlers, herdsmen and farmers and in particular, Kaduna, Taraba and Benue.

    “I have given them a detailed brief on the current situation. Apart from that, Council was also briefed on what the security agencies are doing so far. Basically, the security agencies have commenced a general crack down of gunmen, cattle rustlers and militants,” he said.

     

  • Ambode urges States to explore comparative advantage for economic growth

    Ambode urges States to explore comparative advantage for economic growth

    Lagos State Governor, Mr Akinwunmi Ambode on Monday  urged federating States in the country to initiate opportunities that would enable them benefit from each other and explore their various areas of strength and strategic partnership to engender economic development.

    The governor, who spoke when he received members of the National Economic Council (NEC) Implementation Monitoring Committee on Retreat on the Economy led by the Minister of State for Budget and National Planning, Hajiya Zainab Maina on a courtesy visit to his office in Alausa, Ikeja, also urged the Federal Government to create a framework that would allow States to benefit from each other with the view to fostering concentric cycle of growth in the country.

    He commended the Committee for choosing Lagos as the first State to visit, saying that it was a confirmation of the success of the partnership between Lagos and Kebbi State on commodities production.

    Ambode said: “The essence of this is that beyond the things that we say in NEC in terms of project, we should be able to find a common platform and a framework that allows every other State to benefit from the comparative advantage that each State is bringing to the table and the choice of Lagos as the first State to visit by the Committee in terms of the project signified how serious we have been able to carry out most of the things we have been doing and what underscores that is what we have been able to achieve in our little time on the partnership with Kebbi State on commodities production in the country.

    “We believe strongly that the way to go forward is for us to bring out our comparative advantages in our various States and be able to learn from each other. So, I want to commend to this Committee that beyond the fact that you are doing visitation, let it end up to be part of the framework to work around peer-review mechanism amongst States and then for us to take advantage of what we are doing.”

    The governor added that beyond partnership with Kebbi State, his administration has also significantly improved on the Gross Domestic Product (GDP) of Lagos in terms of improving on the productivity of citizens and making life more comfortable for them.

    “We have improved so much on security to create that platform to allow people to do their business more comfortably and in doing that, the end result is that when more people are doing their trade and distributing goods and services, it is likely to touch on our IGR and that means more people will pay taxes which at the end of the day we would use to provide more infrastructures.

    “So, I want to recommend this template to this Committee that you should observe it and document it also and use it to encourage other States to create that concentric cycle of growth and development in the country,” Ambode said.

    Earlier, Miana said her team was at Lagos House as part of the flag-off of the Implementation Monitoring Visit in line with NEC resolution and the retreat which the Vice President had with Governors in 2016.

    She recalled that at the retreat, participants agreed to address 71 key items, noting that Lagos

    State, out of others, had already presented a good plan to the Committee.

    The Minister also commended the partnership between Lagos and Kebbi States, especially the new Rice Milling Plant being developed, saying that the partnership was a sterling example of cooperation to expand growth.

     

  • FG targets $1 billion from asset, income scheme 

    FG targets $1 billion from asset, income scheme 

    …50% of recovered fund to go states

     

    The National Economic Council (NEC) on Thursday approved the proposed Nigeria Voluntary Asset and Income Declaration Scheme (VAIDS) which will take off May 1, 2017.

    It is expected to yield about $1billion to the Federal Government’s purse.

    The Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, disclosed this to State House correspondents at the end of the NEC, chaired by Vice President Yemi Osinbajo.

    He was joined at the briefing by Abia State Governor, Okezie Ikpeazu and Deputy Governor of Kaduna state, Bala Bantex.

    He said that the scheme will capitalize on the considerable international goodwill already built by President Muhammadu Buhari in his mission to rebuild Nigeria.

    The policy, he said, was necessitated by the under payment of tax via the use of Tax Havens and other evasion strategies, which he noted has not been helpful to Nigeria.

    According to him, the practice has been principally perpetrated by multi-national companies and high net worth individuals, making Nigeria to have the lowest non-oil tax to GDP at 6%.

    He said that the policy will also capitalize on the current global movement against tax evasion and illicit financial flows and will offer a window for those who have not complied with extant tax regulations to remedy their position by the provision of limited amnesty to enable voluntary declaration and payment of liabilities.

    He said the VAIDS scheme targets to increase the tax to GDP ratios to 15% from just 6% by 2020 while simultaneously generating revenue and encouraging investment and economic activity “as only 214 individuals in the entire country pay N20 million or more in tax annually.”

    On the scope of the programme, Bowler said: “VAIDS scheme will embrace all Federal and States’ taxes such as Companies Income Tax, Personal Income Tax, Petroleum Profits Tax, Capital Gains Tax, Stamp Duties, Tertiary Education Tax, Technology Tax.

    “The scheme is intended to cover all back taxes without any limit to time on how far back a tax assessment can go where a taxpayer has willfully defaulted.”

    The FIRS boss said the scheme is targeted to run from May 1, 2017 for up to six months and incentives will be put in place to encourage early participation.

    “Tax payers will be allowed up to 3 years to settle their liabilities. Revenue expected from the scheme conservatively estimated at US$1 billion,” he stated.

    On the role of state governments, he said that based on initial estimates, it is anticipated that at least 50% of the funds recovered will belong to states who are the ultimate collectors of personal income taxes.

    Kaduna State Deputy Governor said that the National Security Adviser (NSA), Babagana Munguno, briefed the Council on the security situation in the country with particular reference to Boko Haram insurgency in the North-East, cattle rustling, ethnic militias/security outfits, kidnapping, among others,.

    According to him, the NSA blamed the situation on unemployment, which he said was a major security threat.

    He also said that the Council has agreed to hold an extra-ordinary session to discuss security matters especially as it has to do with the economy.

    Abia State governor, who spoke on deforestation in the country, said that the Council backed suspension of temporary wood export from the country.

    It was also disclosed that NEC received report of Excess Crude Account as at 15th March, 2017, which stood at US$2, 45,864,724.59, recording a marginal increase of US$2,458,382,882.03.

     

  • Buhari orders CBN, Finance Ministry to pay states London-Paris Club refunds

    Buhari orders CBN, Finance Ministry to pay states London-Paris Club refunds

    President Muhammadu Buhari on Thursday directed the Minister of Finance, Mrs. Kemi Adeosun and the Governor of the Central Bank of Nigeria, Godwin Emefiele, to act appropriately and with dispatch in releasing the second tranche of the London-Paris Club refunds to the states in order to ease their financial hardships.

    He gave the directive while addressing the meeting of the National Economic Council (NEC) made up of State Governors and chaired by the Vice-President Yemi Osinbajo at the Presidential Villa, Abuja.

    Buhari, who met the governors behind closed doors, however, made a strong case for settlement of unpaid salaries and pension liabilities of workers in their states.

    The President in a statement by the Senior Special Assistant on media and publicity, Garba Shehu, said: “I will not rest until I address those issues that affect our people.  One of these basic things is the issue of salaries.

    “It is most important that workers are able to feed their families, pay rent and school fees, then other things can follow,” he said.

    President Buhari, who went round the Council Chambers to greet the governors one after another, praised the unity of the Forum of State Governors.

    He thanked them profusely for their display of “love and respect” to him.

    According to him, he was overwhelmed by his recent experience in which states, irrespective of political differences charged their citizens to pray in mosques and churches for his well-being and apologized to Governors for barring them from visiting him while he was in London.

    “I didn’t want government to move to London. I wanted it to remain here and I am glad it did,” he said.

    After narrating what he went through while on that vacation, President Buhari noted the suggestion by the Governors for him to add more rest, but insisted that he would remain relentless in the pursuit of the interest of the Nigerian people at all times.

    This, he said, was the only way to show his gratitude to the people who, he said, “had given so much to me.  I was overwhelmed by the celebration of my return all across the country.”

    The Chairman of the Nigerian Governors Forum, Abdul-Aziz Yari of Zamfara State assured the President, on behalf of his colleagues, that they will continue to support his policies and actions which they had adjudged as being in the nation’s best interest.

    The governors of Imo, Akwa-Ibom, Osun and Abia States thanked President Buhari for saving the day for states through the first tranche of the London-Paris Club refunds while calling for the immediate release of the second one.

    They also commended the trust the President reposed in the Vice-President, Prof. Yemi Osinbajo, whom they said did not disappoint when he acted as President.

     

  • Osinbajo, governors meet in Aso Rock

    Osinbajo, governors meet in Aso Rock

    Vice President Yemi Osinbajo on Thursday held the National Economic Council (NEC) meeting with state governors and other council members in Abuja.

    The meeting started at the Council Chamber of the State House around 11:10 am

    About 23 State Governors were in attendance when the meeting started.

    The state governors include Ekiti – Ayo Fayose, Kebbi – Abubakar Atiku Bagudu, Delta – Ifianyi Okowa, Bauchi – Abubakar Mohammed, Anambra – Willy Obiano, Enugu – Ifeanyi Ugwuanyi, Kwara – Abdufatah Ahmed, Kogi – Yahaya Bello, Kaduna – Nasir el-Rufai, Ondo – Olusegun Mimiko, Sokoto – Aminu Tambuwal, Oyo – Abiola Ajimobi,  Jigawa – Badaru Abubakar.

    Among the State deputy governors at the meeting are Rivers, Nasarawa, Katsina, Lagos.

    The meeting was still in progress at the time of this report.

  • Buhari to return from London on Sunday- Osinbajo

    Buhari to return from London on Sunday- Osinbajo

    *Says Buhari in perfect health condition

     

    Acting President Yemi Osinbajo on Thursday said that President Muhammadu Buhari will return to Nigeria on Sunday.

    Buhari had taken 10 days medical vacation to treat an ear infection in London.

    The medical vacation expired on Wednesday and the President was supposed to resume on Thursday based on the letter communicated to the National Assembly before he traveled out.

    But speaking with State House correspondents before the National Economic Council (NEC) meeting commenced at the Presidential Villa, Abuja

    Osinbajo said that it is best for the President to take the weekend off.

    According to him, the President is in perfect health condition and will be ready to resume office on Monday morning.

    He said: “The President will be back on Sunday. I spoke with him yesterday evening and I think it is just the best that he takes the weekend off. He will certainly be back on Sunday.

    “I think the most straightforward thing is when he will be back. He will be back on Sunday. There is no point rushing back on Friday or something like that.

    “He will just take the weekend off and be back on Sunday. He is in perfect health and ready to resume work on Monday morning.

    “Mr. President is in good condition, he is fine, he is very well. He should take a day or two off in London and rest a bit and come back hale and hearty on Sunday and be ready for work on Monday. So we expect him back on Sunday.” He stated.

  • Photo: Ambode at the National Economic Council

     

    Lagos State Governor, Mr. Akinwunmi Ambode, with Minister of State for Petroleum Resources, Dr. Ibe Kachikwu; Kano State Governor, Dr. Abdullahi Ganduje; his Ogun and Plateau States counterparts, Sen. Ibikunle Amosun and Barr. Simon Lalong during the National Economic Council (NEC) meeting in Abuja, on Thursday.
    Lagos State Governor, Mr. Akinwunmi Ambode, with Minister of State for Petroleum Resources, Dr. Ibe Kachikwu; Kano State Governor, Dr. Abdullahi Ganduje; his Ogun and Plateau States counterparts, Sen. Ibikunle Amosun and Barr. Simon Lalong during the National Economic Council (NEC) meeting in Abuja, on Thursday.

     

    Lagos State Governor, Mr. Akinwunmi Ambode, discussing with Governors of Kebbi, Ogun and Gombe States, Alhaji Atiku Bagudu; Sen. Ibikunle Amosun and Alhaji Ibrahim Dankwambo during the National Economic Council (NEC) meeting in Abuja, on Thursday.
    Lagos State Governor, Mr. Akinwunmi Ambode, discussing with Governors of Kebbi, Ogun and Gombe States, Alhaji Atiku Bagudu; Sen. Ibikunle Amosun and Alhaji Ibrahim Dankwambo during the National Economic Council (NEC) meeting in Abuja, on Thursday.