Tag: state governments

  • Fed Govt, states, local govts share N619.857b

    THE three tiers of government – federal, states and 774 council areas —yesterday shared N619.857 billion as Federal Allocation for  February.

    A communiqué issued by the Technical  Sub -Committee of the Federation Accounts Allocation Committee (FAAC) at the end of its February meeting, indicated that the gross statutory revenue received was N478.434 billion.  It was lower than the N505.246 billion received in the previous month by N26.812 billion.

    Addressing reporters at the end of yesterday’s meeting in Abuja, the Director of Funds in the Office of the Accountant-General of the Federation (OAGF), Muhammed Usman, said: “Federation crude oil export sales increased by about 46 per cent resulting in increased federation revenue from $425.00 million previously to $574.95 million. Shut-in and shut-down persisted while some terminals remained closed due to leaks and maintenance.

    Read also: Trouble brewing as NNPC owes FAAC $1.7bn

    “Petroleum Profit Tax (PPT) increased significantly while Companies Income Tax (CIT) recorded a marginal increase. Revenues from Value Added Tax (VAT), Oil Royalty, Import and Excise Duties decreased in February, 2019.

    “The distributable statutory revenue for the month is N478.434 billion. The total revenue distributable for the current month (including VAT, Exchange Gain, Excess Bank Charges recovered and Forex Equalisation) is N619.857 billion.

    “Therefore, from the total distributable revenue for the month, the Federal Government received N257.681 billion representing 52.68 per cent; states received N169.925 billion representing 26.72 per cent; local government areas received N127.722 billion representing 20.60 per cent; while the oil-producing states received N50.946 billion also representing 13 per cent derivation revenue.”

    Usman further disclosed that “the balance in the Excess Crude Account (ECA) as at 27th March, 2019 is $183 million.”

  • How state governments can tackle pension backlogs, by experts

    State governments have been advised to set aside sinking funds to address the issue of pension entitlements owed retired workers in their various states.

    South, Premium Pension Limited Executive Director, Business Development and Strategy, Mrs Kemi Oluwashina, gave the advice during a courtesy visit to the Head of Service of Enugu State, Mr Chidi Ezema.

    The visit was to appreciate efforts being made by the state government to join the league of states running Contributory Pension Scheme (CPS).

    She said lack of prompt payment of pension entitlements, especially accrued rights to retiring or retired workers, is blighting the successes recorded in the CPS.

    She explained that a sinking fund is an account that is used to deposit and save money to repay a debt or replace a wasting asset in the future.

    “In other words, it’s like savings in which you deposit money regularly that can only be used for a set purpose,” she said.

    According to her, a sinking fund is essentially established to ease the process of retiring debt or prevent defaulting on debts and can serve several purposes.

    She pointed out that the main purpose is to lower the outstanding principal before it becomes due.

    She said: “There is need for state governments in the country to establish sinking funds to address the problem. The liability of unpaid pension entitlements will never go away until it is frontally tackled as a matter of urgency, while also highlighting the fact that the real value of unpaid pension liabilities gets eroded with time to the detriment of the retirees, who are already passing through untold hardship. If anything, things only get worse when the liabilities keep piling up.

    “Setting aside this special fund is a midway approach to addressing the liabilities. While Accrued Rights are largely entitlement of workers before the advent of the private sector –driven CPS, its late payment by especially, the various tiers of government renders pension administration cumbersome or even impossible. This is because accrued rights have to be lumped into Retirement Savings Accounts (RSAs) before lump sum and Programmed Withdrawals could be worked out for retirees. Most, if not all retirees from government establishments for now have their entitlements locked in both the old Defined Benefit Scheme and the new Contributory Pension Scheme.

    “This backlog of pension liability is more pronounced in most state governments that have not been making any serious effort to address the issue, nor even keyed into the new scheme by domesticating the Pension Reform Act 2014.”

    For instance, while the Federal Government is making efforts to offset the unpaid pension accrued rights for the period covering May, 2017 to April, 2018 which stands at N97.55 billion, most state governments still struggle with the payment of salaries let alone addressing issues of pension.

     

     

     

  • Constitution Review: Reps devolve more Power to states

    Constitution Review: Reps devolve more Power to states

    The House of Representatives Special Ad-hoc Committee has heeded the stringent call for true federalism and restructuring of the country by granting the devolution of powers to State Governments.

    Also adopted by the committee is the amendment that “any person who has been sworn-in as President to complete the term of a person elected as President shall not be eligible to contest for election into such office for more than one single term.”

    The over 50 members committee at a meeting chaired by the Deputy Speaker, Yussuff Lasun Monday also approved the cancellation of the State and Local Government Joint Account from the 1999 Constitution.

    Each Local Government Council according to the proposed amendment is empowered to maintain its own account into which shall be paid its allocation form the Federation Account and from the State Government.

    That the disbursement from the account can only be upon a Bye-Law of the Local Government Council was also supported by members of the ad hoc committee.

    A statement from the office of the Deputy Speaker further explains: “This is aimed at granting financial autonomy to the local government councils and strengthen separation of power at that level.”

    Also endorsed by the committee was “the bill for an Act to alter the provisions of the 1999 constitution to provide for independent candidacy to contest elections at all levels in the country.”

    The lawmakers also endorsed proposal for financial autonomy for State Houses of Assembly and Judiciary directly from the Consolidated Revenue Fund (CRF) of the State, and for related matters.

    Members of the Adhoc Committee endorsed the letters of the bill for an Act to alter the provision of the 1999 Constitution to strengthen Local Government administration in Nigeria.

    According to the lawmakers development at the rural areas across the Local Government Areas across the country requires financial independence in order to stimulate infrastructural development at the grassroots level.

     

  • Far less ingenuity in state governments

    Far less ingenuity in state governments

    STATE governments owing backlog of salaries are not the only ones ignoring the lessons and perils of the current economic crisis. Everyone, including the progressively conservative Muhammadu Buhari presidency, is holding on stubbornly to the unworkable structures and habits of the past. The economy is not what it used to be, and will not be for many generations to come except revolutionary disruptions to the world economic system occur. The Nigerian political substructure has bred and fed the ogre of oppression, confusion and stagnation, yet governments and politicians have carried on blithely, gorging on the benefits of the past few decades and capitalising on the lassitude of incompetent officials. Until political iconoclasts, who are by the way few and far between, meet the great and grand demands of the times, retrogression and mediocrity will be the order of the day.

    Last week, the Oyo State governor, Abiola Ajimobi, resigned himself to hopelessness over the state’s salary crisis. There was no way he could pay the N5.2bn wage bill from a N2.2bn income from the federation account, he groaned. Mathematically, he is right, for even if the Internally Generated Revenue (IGR) were shot up to N3bn, it would still be impossible to pay. The state owes its workers about seven months salaries. The governor did not say it, but he implied that for decades, the country’s lack of fiscal federalism and the abysmal and suffocating unitarist structure gifted the nation by backward-looking military dictatorships had wreaked unquantifiable havoc on the country’s sense of innovation and experimentation. He did not also say it, but he implied that even he had become unimaginative and unsuited for the complex demands of the moment.

    Mr Ajimobi is not alone. Even before the Oyo governor yielded to frustration and paralysis, and labour unions had begun to give him constipation, Osun State under Governor Rauf Aregbesola had become the poster child of unpaid salaries and stymied development, with the state pockmarked by unfinished but ambitious projects. Much more than Oyo, Osun presented a curious economic conundrum. Oyo does not pretend to any ideological cover for its stasis. The state economy was and still is a simple, uncomplicated arrangement located gingerly somewhere between mixed economy and ad hocism. Whatever comes from the federation account is added to the little IGR they can rake up, and a few development programmes are thus initiated to justify eight years or so in government with all its garish panoplies. Their ambition is moderate, their governing template is simple, and their future hangs precariously and wistfully between Daniel Defoe’s Robinson Crusoe and Robert Louis Stevenson’s Treasure Island.

    Osun, on the other hand, though its salary difficulties are not less complex or profound or disruptive, has managed to design a governance structure that vaults to the progressive and globalising future as pretentiously as it harks back to a socialist past. Not only was sufficient attention not paid to the state’s revenue base in anticipation of a possible general economic downturn, the state also embarked on such catatonic social re-engineering, especially in its educational sector, that it is hard to imagine anything more convulsive or more stiffening. But the state bristles against critics who insist that rather than reclassify or restructure, what the state needs is attention to quality, and that that quality can be achieved without the disruptions that have seemed to aggravate religious sensibilities and paint the governor in unflattering sectarian colour. The state thinks the future will underscore the far-sightedness of the reforms being carried out under Gov Aregbesola, and prove sceptics wrong. This is a tough verdict to coax out of posterity.

    Perhaps the most frightening response to the economic crisis being faced by the country is the one inspired by the gaudy Gov Rochas Okorocha of Imo State. He is probably the most charismatic governor of the three used as examples of the paralyses debilitating the states. He may even be the most charismatic governor in this term. He is intelligent, eloquent and sometimes oratorically profound. The media reports many of his giant developmental strides favourably, and applaud his social finicalness and savvy. But, like many others, he suffers frequent bouts of flights of fancy. A week after he flirted with the unusual and befuddling idea of a three-day working week, the rest apparently to be invested in agriculture willy-nilly, even by those averse to farming, he simply presented the state with a fait accompli. That is his own ingenious way of solving a problem that is deep and systemic, a problem that requires profundity, not capriciousness. Does he by any chance hope to cut their salaries to accommodate their new work schedule? Would the unions entertain such driveling resort to arithmetic frolic?

    The three states in discourse are not exhaustive of the lack of profundity in statecraft. They are merely an indication of what is almost a total Nigerian experience, as more than two-thirds of the states have met cash flow problems with near total lack of imagination. Unfortunately, the voters are themselves unable to distinguish between the many distorted realities politicians confront them with, between truth and falsehood, between genuineness and chimera. There is, therefore, no serious effort to interrogate those who present themselves for elective posts to find out how suitable they are, what the amperage of their temperament is, how their secularity rate, whether the depth of their knowledge can be plumbed, and what the scope of their wisdom is in comparison with the wisecracks and homilies of the ancients. It is indeed galling that most states are afflicted by poor leadership, just as the national level, in more than 50 years, has not found even one man worthy to be called a leader in the truest sense of the word.

     

  • CBN advises state govts to adopt TSA

    CBN advises state govts to adopt TSA

    The Central Bank of Nigeria (CBN) on Wednesday in Abuja advised state governments to adopt the Federal Government’s system of using a single account for all its revenue deposits.

    Mr Kure Abubakar, Head, Client Services at the CBN, gave the advise while presenting a paper on “Understanding Treasury Single Account (TSA)’’at the close of a two day workshop on the Fiscal Responsibility Act.

    The News Agency of Nigeria (NAN) reports that the workshop, which began on Tuesday, was organised for government revenue generating Ministries, Departments and Agencies (MDAs).

    He said the TSA, if adopted by states, could help them to get maximum benefits.

    Abubakar, while answering questions from participants urged them to comply with the Federal Government’s directive and adhere to the Sept. 15 deadline to avoid sanctions.

    On the sidelines of the workshop, he told newsmen that some MDAs had complied and that if others failed to comply, they stood the risk of being sanctioned by the president.

    “There are sanctions and the directive says all erring MDAs will be penalised and that is enough because that is the type of political will we need.

    “If you don’t comply the consequence is yours. I cannot say specific penalties but I believe the president has the authority to penalise either the Managing Director or Chief Executive of such MDA.

    “So those that refuse to comply are on their own or they should show reason to the government why they cannot comply,’’ he said.

    He also said that MDAs that require a waiver could do so by making a presentation to the president stating why such should be granted.

    “The presidential directive says that you can make a presentation to the president for a waiver if necessary.

    “If the justifications are quite good Mr President in his own wisdom can grant the waiver but for now all the MDAs should work towards achieving the deadline of Sept. 15,’’ he said.

    Mr. Khurima Nthara, World Bank Lead Economist and Programme Leader for Nigeria, while commending the Federal Government on the TSA implementation, said that it had been tested in other countries and it had been effective.

    He said the concept would help government to reduce borrowing because it would enable it have a more consolidated view of the cash that it has at hand.

    “I think the TSA has got a very simple concept. You want the government to have a good view of all the cash that it has in one single account.

    “You don’t want the situation that one department or ministry has funds lying idle in one commercial bank when another is in need of those cash and the government has to borrow to make sure that the other ministry or department has access to funds.

    “So the concept of the TSA is that all funds should be consolidated so that whichever agency is in need of cash at the moment should have access to those funds,’’ he said.

    One of the participants, Mr. Ibeh Benneth told NAN that the workshop had helped him to understand how the Fiscal Responsibility Act works and how to go about the TSA remittance.

    He further said that the workshop gave him a better understanding of the importance of the TSA to the nation and that it would ensure transparency in governance.

    “I know I have been hearing of TSA but confronting it very closely today was good.

    “We have discussed it extensively in our organisation but we did not know how to go about it.

    “But now we have an idea and even though we had previously gotten an exemption letter, it is obvious that letter will not work, we have to start the process afresh.

    “We saw the TSA as a directive that government just wants to be seen to be doing something but now I know that it is with good intentions,’’ he said.

     

  • Star-studded federal and state governments

    Star-studded federal and state governments

    With the principled and determined President Muhammadu Buhari elected in March and sworn in last Friday, there is hope that the problems confronting Nigeria would meet more than their match. The president will be assisted by his second-in-command, Yemi Osinbajo, a law professor with enormous experience in government. Their expected synergy is anticipated to give hope for sound and deep-rooted democratic practices and institutions, which are sorely needed in Africa, in addition to a research-oriented and knowledge-driven party, the All Progressives Congress (APC), giving the system the needed push. If the president manages, as expected, to assemble a great and brilliant team, governance, democracy and development will benefit from the unquantifiable spinoffs of a successful election.

    More than the great expectations at the federal level, the outcome of the polls in the states and the quality and vibrancy of the men thrown up by the elections give even greater hope of a much brighter tomorrow and firmer democratic practices. Nigerians will be busy paying attention to the men and women turning things around at the federal level. But they will be even busier watching and engaging the men and women turning things around in the states, for it is not only the President Buhari government that is believed to be star-studded. Unlike the last four years when just a few states made deep impression on the public, many more state governments are expected to shine bright and strong. They deserve serious attention.

    Lagos will sustain and consolidate its great developmental strides, considering how fortunate the state has been in voting the same party into office thrice. The general benefits of continuity, not to say the continuing implementation of a developmental master plan, will ensure the new state government will hit the ground running, as indeed the last governor, Babatunde Raji Fashola did. Ogun and Oyo are also enjoying the good fortune of continuity, as the two governors have been awarded a second term in office. Ogun in particular has dreamt great dreams. It is expected to get the chance to execute lofty projects that will make the state compete with Lagos.

    Adamawa may not have elected the Peoples Democratic Party (PDP) Nuhu Ribadu, former boss of EFCC, a man widely considered a moderniser, but the state will nonetheless cause a stir nationally with Governor Bindow Jibrilla. Even more telling, the solid democrat and brilliant young barrister, Aminu Tambuwal, former Speaker, House of Representatives, will cause more than a stir. He will bring Sokoto State squarely to the national domain, where he, more than his state, belongs. He will get a lot of attention, partly because his leadership skills will make him dare mighty things. Consider also the case of Kaduna State where the activist and impatient builder and moderniser, Nasir el-Rufai, will be holding court. If he can manage to put a lid on his fiery temper and bridle his tongue, he is expected to do wonders.

    Then there is also Rochas Okorocha of Imo, who despite his sometimes casual resort to flights of fancy, has carved a niche for himself as a builder. Because of his ambition to climb higher to the national level after governorship service, he is expected to use his second term for great legacy projects, as someone who has a reputation for challenging himself, and using himself as a benchmark. Katsina’s Aminu Masari will very likely draw a lot of attention. As Speaker of the House of Representatives, he showed grit and principles in the face of executive interferences. His understanding of democracy and his preparedness to sacrifice everything for it will make him one leader to watch, not only in his state, but also nationally before too long.

    The states, it is turning out, will be an incubus for future national leaders and developmental giants. They give hope that democracy will be well nurtured and protected, and the economy and the people well nourished. If anything, the quality of men in the states suggests that democracy may be here to stay. With a federal government shining brightly, and states showing off their lustre, it seems indeed very promising that Nigeria may be preparing to take its place as a continental leader after all.