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Tag: States

  • Most states would have collapsed without FG’s intervention, says Katsina governor

    Most states would have collapsed without FG’s intervention, says Katsina governor

    Katsina state Governor, Hon. Aminu Bello Masari has said that without the intervention of the Federal government, many of the states in the country would not have been able to pay the salaries of their workers and would have collapsed in the face of dwindling oil revenue.
    Speaking at a town hall meeting with Katsina state indigenes resident in Abuja on Sunday, Governor Masari said the intervention of the federal government has helped many of the states to stay afloat as what they get from the federation is not enough for about 27 of the states to pay salaries of their workers.
    The governor said since the present administration in the state came into office, it has received intervention from the federal government on four different occasions to address issues of salaries, gratuity and pension of workers in the state, but lamented that his government is still faced with a huge challenge in terms of funding the operation of the local government system in the state.
    According to the governor, federal allocation to the 34 local government councils in the state is not enough for them to pay salaries of their workers, pointing out that while the councils receive about N3.6 billion monthly from the federations account, their total wage bill stands at about N3.7 billion.
    He stressed however that while some of the local government areas can afford to stand on their own, some others, especially the big local government areas has to rely on others to survive.
    He listed federal financial intervention to the state to include the bailout fund of about N11.8billion, N10 billion special intervention to each of 36 states for capital projects, a monthly intervention of N1 billion to the states to assist the state in the payment of salaries and pension as well as N14.2 billion Paris Club refund.
    He disclosed that N6.7 billion from the Paris Club refund will be used to settle arrears of gratuity and pension of civil servants in the state up to June 2016 and that of local government upto March 2016.
    While lamenting the current situation of things in the state, Governor Masari said presently, the state is ranked third in the national poverty index and seventh in revenue allocation in the country, adding that the state has reason to be in the position it currently found itself.

  • FCMB funds eye surgeries in three states

    FCMB funds eye surgeries in three states

    The annual First City Monument Bank (FCMB)’s sponsored free eye screening and cataract surgery programme known as, Priceless Gift of Sight, has commenced in Kebbi, Cross Rivers and Imo states.

    The Corporate Social Responsibility (CSR) initiative involves eye screening tests, full ophthalmic medical examination, eye surgeries, provision of free medication, eye glasses and counselling for those suffering from cataract, an eye defect that could lead to blindness if not promptly treated.

    This marks the eight consecutive year the bank is organising this intervention programme in partnership with Tulsi Chanrai Foundation (TCF), a Nigerian-Indian non-profit organisation. Thousands of people across Nigeria have so far benefited from the exercise since it commenced in 2009. This year, the Bank sponsored 500 eye surgeries in Kebbi, Cross Rivers and Imo states, while thousand others underwent the screening for cataract during the programme.

    In 2016, a total number of 2,328 people were screened in Cross Rivers, Katsina and Kebbi states with 400 eye surgeries successfully performed.  The bank has previously carried out the programme in Adamawa, Imo, and Ogun states.

    The bank’s Group Head, Corporate Affairs, Diran Olojo, said, “the importance of sight to the well-being of an individual and the nation cannot be over-emphasised. We are proud to sustain the sponsorship of this initiative with Tulsi Chanrai Foundation because it has continued to positively touch and transform the lives of thousands of people, homes, businesses and indeed, the society”.

    A beneficiary, a 78 year old Jonathan Nwosu of Umuaro autonomous community, Nkwere Local Government of Imo State described the initiative as a service to humanity.

    Another beneficiary of the eye surgery in Kebbi state, Mustafa Muhammed also commended FCMB and TCF for coming to his aid and thousands of others suffering from cataract through the priceless gift of sight initiative.

    Also speaking on the programme, the Chief Operating Officer of Tulsi Chanrai Foundation (TCF), Col Prasad said: “the priceless gift of sight has gone a long way to transform the lives of people, especially the poor and needy who suffer from cataract in Nigeria, but cannot afford the resources to go through tests, medication and surgery.

    There is no gift in the world better than giving sight to the sightless. Our Foundation is grateful to FCMB for its kind and generous support over the years towards the noble cause of eliminating the scourge of avoidable blindness, while also give hope to the hopeless’’.

  • Fed Govt, states, local govts share N467.8b

    Fed Govt, states, local govts share N467.8b

    The Federation Accounts Allocation Committee (FAAC) yesterday shared N467.807 billion among the three tiers of government for last month.

    According to the Accountant-General of the Federation (AGF), Ahmed Idris, the gross statutory revenue of N331.583 billion received for the month was higher than last month’s N290.163 billiion by N41.420 billion.

    He noted that despite the increase in the average unit price of crude oil per barrel from $44.74 to $52.86, the revenue from Federation Export sales dropped by $6.6 million.

    Addressing a news conference after the meeting in Abuja, Idris attributed the decline to crude oil export volume.

    “Production suffered during the period due largely to leakages in the pipelines arising from sabotage, shut down of terminals for turnaround maintenance and the Force Majure declared at Forcados and Brass Terminals that were still in place.

    “There was, however, a noteworthy increase in revenue from oil royalty. Also, significant increases were recorded from companies’ income tax, import and excise duties and Value Added Tax.”

    The Accountant-General noted that the distributable statutory revenue for the month was N299.930 billion.

    Idris added that N6.330 billion was refunded by the Nigeria National Petroleum Corporation to the Federal Government.

    The AGF said: “There is a proposed distribution of N22.259billion from Excess Petroleum Profit Tax account. Also, exchange gain of N66.967 billion is proposed for distribution. The total distributable for the current month including VAT is N467.807 billion.”

    The Federal Government received a share of N189.243 billion, states got N127.994 billion and 774 local government areas received N96.000 billion.

    The chairman, Commissioners of Finance Forum, and Commissioner of Finance from Adamawa State, Yinusa Mahmud, said the revenue in the month under review increased by N38 billion.

    “The price of oil is promising and that the federal government is doing much to sustain peace in the Niger Delta,” Mahmud said

  • Anxiety over states’ dwindling IGR

    Anxiety over states’ dwindling IGR

    The latest Nigeria Extractive Industries Transparency Initiative (NEITI) Quarterly Review shows a drastic drop in the revenue profile of most states of the federation, a development, analysts have argued leaves nothing to cheer about, reports Ibrahim Apekhade Yusuf

    There are mounting worries over the parlous state of the economy. The worries, if you may, are not for nothing.

    Reason: the biting economic crunch has not only affected receipts to the 36 states of the federation but is already having a negative run on critical sectors of the economy, especially social services like healthcare, security, education, infrastructure to mention just a few.

    One agency that has raised its voice above the din over the unprecedented decline in states’ revenue in recent times is the Nigeria Extractive Industries Transparency Initiative (NEITI). NEITI’s treatise is as damning as it is revealing.

    A snapshot of (NEITI) Quarterly Review

    According to the latest NEITI Quarterly Review obtained by The Nation, receipts to states across the federation have dipped in recent times.

    The report tagged: ‘FAAC Disbursements in 2016: Review and Projections,’ in which the agency appraised the internally generated revenues (IGRs) of the states showed that payments to the three tiers of government have continued to decline by over 40% since 2013.

    Specifically, the report stated that: “The federal government received N3.711 trillion in 2013 and this fell by 43.9% to N2.08 trillion in 2016. Similarly, disbursements to state governments totaled N3.095 trillion in 2013. In 2016, states received N1.642 trillion, which represented a 46.9% decline on the 2013 figures. Local governments received N1.011 trillion in 2016, representing over 40% lower than the figure of N1.708 trillion received in 2013.”

    On disbursements to the federal government in 2016, the NEITI publication disclosed that the total FAAC allocations stood at N2.08trillion as against the N6.06 trillion that the federal government budgeted for the year. This represents a drop of 20% when compared to the 2015 figure of N2.6trillion.

    The payment covered just about 34% of the budget and was not even enough to meet the recurrent expenditure needs of N2.6 trillion of the FGN last year. The implication according to the NEITI publication was that “the federal government would  resort to even higher debts to fund the budget including debt service payments, which accounted for 24.3% of the 2016 budget, increased.’’

    NEITI further revealed that revenues accruing to the state governments fell short of their budgets projections; some as much as 30%. These disbursements comprise of gross statutory allocation, 13% share of derivation, Value Added Tax, distribution of exchange gain, NLNG dividend, and distribution of excess bank charges recovered and distribution of solid minerals revenue.

    The report cited some states like Lagos which had a budget of N662.60bn, against the  total revenue of  N410.5bn  that accrued to the state leaving a shortfall of about N252 billion. On the other hand, Adamawa state had revenue of N41.05 billion against a budget of N130.10 billion while Nasarawa had revenue of N32.5 billion to fund a budget of N77.30 billion.  It further asserted that some states such as Cross River, Sokoto, Borno, Jigawa, Osun and Plateau had revenues below 30% of their budgets in 2016.

    Akwa Ibom state received the highest allocation of N116.6 billion from the federation account in 2016 and was closely followed by Lagos and Rivers states with N109.3 billion and 103.98 billion respectively.

    The NEITI Quarterly Review also showed that Kwara and Ebonyi states received the least allocations of N30.08 billion and 30.09 billion respectively from the federation account.

    The disparities in the total disbursements to state and local governments were also highlighted in the report. For instance, while three states received disbursements above N100 billion each, 30 states received allocations less than half of that figure (N50bn) in 2016.

    On disbursements to the 774 local governments in Nigeria, Lagos state topped the table with a total of N69.29 billion to its 20 local governments, followed by Kano state’s 44 local governments that received a total of N56.16 billion. Bayelsa state received the lowest disbursement of N11.56billion for its eight local governments.

    The NEITI Quarterly Review identified allocations to the local governments to include   gross statutory allocation, exchange gain difference, value added tax, and excess revenue from various sources. Others were NLNG dividend, recovery of excess bank charges, excess PPT and solid minerals revenue.

    It is also instructive to note that NEITI shared the concern of Nigerians for state governments to lessen their dependence on federal allocations through creative means of increasing opportunities for internally generated revenues. “IGR is very low in most states and it is only in two states of Lagos and Ogun that the IGR is higher than FAAC allocations.”

    The debt profile of the state governments, NEITI observed, were on the increase; consisting of domestic and external debts as at December, 2015 and June 30th, 2016. For instance, Lagos state has the highest cumulative debt of N603.25 billion as against the state’s revenue of N410.5bn for 2016. The second on the debt table is Delta state with N331.95 billion growing debt as against N142.78 of the state revenue. Osun and Akwa Ibom states took the third and fourth places on rising debt profiles with N165.91 billion and N161.23billion respectively.

    Yobe and Anambra states stood out clearly as states with the least debt burdens. While Yobe was indebted to the tune of N11.74billion, Anambra state owed N20.60billion.  The cases of Osun, Cross River and Delta states raised major concerns in the debt analyses giving the fact that their total borrowings over the years were found to have more than doubled the total revenues accruing to them in 2016. The report maintained that “Considering that most states already have a high debt burden, the possibility of even higher debts for the states remain quite high.”

    The NEITI Quarterly Review noted that “All three-tiers of the Nigerian government have been subjected to dwindling and volatile revenue as a result of militant attacks in the Niger Delta and falling/unstable oil prices.’’

    It however expressed optimism that with the gradual increase in oil production and a gradual rise in oil prices from $30.70 per barrel in 2016 to $54.58 per barrel in January 2017 there is hope for the recovery of the economy. “If this rising trend continues government revenue will likely increase further. This will improve the ability of both the federal and state governments to fund their budgets,” the NEITI Quarterly Review concluded.

    Implication of a monoculture economy

    Because of the dependence of government revenue on petroleum exports, Nigeria’s public finances are subject to frequent upswings and downswings, following movement of global oil prices. As shown by this and previous issues of the Review, all three-tiers of the Nigerian government have been subjected to dwindling and volatile revenues as a result of militant attacks in the Niger Delta and falling/unstable oil prices.

    New mandate to state governments

    Faced with the grim reality of an unstable polity as a result of dwindling oil receipts, there has been a paradigm shift in the way state governments are expected to run their operations.

    Like Lagos, many states have literally woken up to smell the coffee as they have become rather ingenious in setting their priorities in line with their revenue projections.

    Speaking at a public forum in Lagos recently, Minister of Finance, Mrs. Kemi Adeosun said most of the state governments in the past were spendthrift.

    “In the past few years, 90% of all what we were spending on was on recurrent leaving just 10% for capital project. For instance, when we came on board, we discovered that the federal government spent N19billion on infrastructure in 2013 while it spent a total of N64b on travels, N51billion on welfare like rice, biscuits, coffee, and tea. If you spend for the wrong things you are going to get the wrong results,” she said.

    The minister who acknowledged the fact that country was in dire financial straits at the moment, said things would have been a lot better if the right infrastructure was in place.

    Waxing philosophical, she said, “Often things get worse before they get better. Most nation’s that are doing well today have passed through some kind of adversity. Ethiopia, that everybody is talking about today invests over 60% of its budget on infrastructure, they export flowers to Holland and make a lot of forex in return. Nigeria needs to take a cue from such good examples.”

    Mazi Okechukwu Unegbu, Managing Director/Chief Executive, Maxifund Investments and Securities Plc, speaking with The Nation recently lamented what he described as the overdependence on a monoculture economy. Such overdependence, he stressed, does not bodes well for the economy.

    “I think we should living in denial, saying that this has happened because of the past administration. We should forget and throwaway that administration and do something better than what that administration did. That’s why we voted. So I think people should have patience because there is no doubt that if we spend N1.5 trillion on capex, and people will not benefit from it. We will benefit from it. But it is the level of benefit you get that matters at the end. Right now, people don’t have food to eat because no money is circulating around. But with corruption left, right and centre, it becomes a problem.”

    Expatiating, the trained lawyer and stockbroker said: “I think the issue of corruption appears to have permeated everywhere. Even the domestic industry everybody is doing something that is not right. In a situation where the recurrent expenditure is so high, that is a recipe for corruption because even in private businesses what you achieve with one person may be more than 20 in the public institutions. So I think we need to look into the process of those who are going to implement the budget. If the budget is well-implemented, I’m optimistic that it will help Nigerians get out of their current poverty state.”

    He would rather the government is more circumspect in their operations.

    “We have so many uncompleted projects littering over Nigeria because they would forget the one that was coming up. They bring out something new and midway they stop it.  as a private business, all you do is you do a projection that if they can complete five of the 34 projects they have outlined fully to operational position I tell you we will be better off than  having one quarter completed of the 34 projects. I think the government is biting a lot more than it can chew. I don’t believe idea of saying we have earmarked 34 projects for completion. They will achieve that. Just mark down this date we’re talking, at the end of the fiscal year they cannot deliver on those projects. But if they can achieve even five of it, we will be better off.”

  • 36 states, FCT demand $6.9b Paris Club refund

    36 states, FCT demand $6.9b Paris Club refund

    Fed Govt to return excess deductions in five to 10 years

    States are demanding about $6.9billion Paris Club loan deductions from the Federal Government.

    The government has raised a verification and reconciliation team on the claims by states to end over deduction of loans which have crippled many states.

    It was also learnt that the government has set guidelines for accessing the refund.

    The Federal Government may— no thanks to the recession— issue long tenored instruments of between five and 10 years to states with valid claims to refund the money.

    President Muhammadu Buhari has ordered the release of about N522.74 billion in the first tranche to enable states offset outstanding salaries and pensions.

    The initial payment was greeted with controversy following the remittance of about N19billion from the N522.74 billion into two accounts of the Nigeria Governors Forum (NGF) as commission to consultants.

    According to a document obtained by The Nation, states are demanding US$6, 923,722,131.81 refund from the Federal Government.

    The states based their requests on unaccounted deductions on “Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) Report of the Reconciliation of State Governments’ External Debts, Vol. 1 (May 2007)”.

    The breakdown is  as follows: Abia ($151, 410, 816.39); Adamawa($161, 968, 221.27); Akwa Ibom($344, 122,584.90); Anambra($162, 163, 091.98); Bauchi  ($182, 192, 756.59); Bayelsa($329, 744, 322.49); Benue($81, 580, 708.60); Borno($194, 461, 850.74); Cross River ($160, 936, 263.51); Delta ($365, 655, 143.86); Ebonyi($119, 419,427.28); and Edo( $161, 354, 346, .83).Others are  Ekiti($126, 432, 758.86); Enugu($142, 034, 156.54); Gombe ($118,486,826.45); Imo($185, 451, 792. 92); Jigawa ($188, 282, 561.77); Kaduna($204, 549, 118.60); Kano( $287, 952, 190.23); Katsina($217, 274, 991.01); Kebbi($158,344,357.37); Kogi($159, 674,903.18); Kwara($135, 646, 207 .33); Lagos($223, 773, 195.58);

    The list includes Nasarawa($120, 557, 593.92); Niger($191, 014, 388.20); Ogun($152, 036, 415.75); Ondo ($ 185, 527, 107.67); Osun(4167, 261, 095.11); Oyo(4209, 314, 168.61); Plateau($149, 512, 027.96); Rivers ($462, 593, 183.07); Sokoto($170, 625, 921.77); Taraba(4148, 662,635.52);  Yobe($143, 393,460.04); Zamfara($144, 169, 154. 81); and FCT($18, 142, 185).

    Some states sought refund from 1982 to 2006, others put their timeline at 1995 to 2006.

    In one of their letters to Vice President Yemi Osinbajo through a consultancy firm, the states indicated that the demand for refund began during the tenure of a former Minister of Finance, Dr. Ngozi Okonjo Iweala.

    The letter gave some insights into efforts at reconciling debt records which the Buhari administration inherited.

    The details are contained in the letter by Mauritz Walton Nigeria Limited, which was engaged by some states for the reconciliation of their loan refunds.

    The letter was signed by Dr. Maurice Ibe (Managing Consultant) and Alh. Sani Anani (Associate Consultant) for the firm.

    The letter states: “The above named company was appointed as consultants by some state governments to carry out reconciliation and recovery of all over deductions on foreign loans (1995 to 2006).

    “Subsequently, the loan records were received and reconciled for all the states under our client list (1982 to 2006). It was discovered that the total deductions from the states’ statutory revenue from June 1995 to March 2006 (period of “first line charge policy”) were completely omitted in the past reconciliation exercises.

    “It is important to kindly inform that Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Debt Management Office (DMO) and FAAC Sub-Committee did not include this period.

    “Therefore, based on our findings, we submitted a demand notice to the then Coordinating Minister of the Economy and Minister of Finance as established over deduction of our clients (states).

    “The purpose of this letter is to seek your kind intervention as the Chairman of Debt Management Office (DMO) to resolve these issues once and for all.”

    A Presidency source said: “We need to put on records that President Buhari is embarking on loan refund due to over-deductions over the years. Some states have overpaid what they borrowed. This became rampant during the ‘First Line Charge’ period of 1992 – 2002 when deductions were made from Revenue Allocation Accounts.

    “Most of the over deductions in dispute occurred before the establishment of the Debt Management Office (DMO). Also, deductions from First Line Charge has been suspended since 2012.

    “Prior to the establishment of DMO, some states were servicing loans that records could not be traced again. The President has decided to clean up the debt management system in a way that some of these states will be off the hook.

    “What he has done is to ask states to come up with their claims which would be verified by the Federal Ministry of Finance, the Debt Management Office (DMO), RMAFC, and Office of the Accountant-General of the Federation (OAGF).

    The President is said to have decided to direct the release of some refund (first and second tranches) to states pending reconciliation of debt records to enable them pay outstanding salaries and pensions.

    He took the decision after getting the report of a Presidential Committee which looked into all liabilities owed to all States of the Federation by the Federal Government of Nigeria (FGN), The Nation learnt.

    Responding to a question, the source added: “A verification/ reconciliation committee is already working on these loans and claims by states.

    “The Nigeria Governors Forum (NGF) has an agreement with the President that any state which gets more refund than it ought to pay back. This is why states ought to use their refund well.”

    Another document has also given insights into the findings of the Presidential Committee and the guidelines which states must follow to get their refund.

    The document said in part: “The Committee met and after deliberating on the issue of States’ claims for refund of the Federal Government’s over-deductions on their Revenue Allocation Accounts in the period prior to the establishment of the DMO, wishes to communicate the following:

    1. The Federal Government is prepared and willing to revisit the issue of States’ claims of over-deductions from States’ Revenue Accounts during the period of First Line Charge, which had been suspended since 2012.
    2. States with genuine claims should make their submissions directly to the Presidential Committee and not through any Consultant, within the timeline given by the Committee.

    iii. Claims by all the States of the Federation would be considered together by the Presidential Committee and no State would be treated separately;

    1. A thorough verification process would be undertaken to sift through the submissions made by the States, with a view to either authenticating or rejecting the claims, based on their veracity or otherwise.

    “You may kindly wish to find below, the Guidelines for the consideration of claims by all States:

    1. All submissions should be addressed to the Presidential Committee on the Verification of States’ Claims of Over-Deductions from Revenue Allocation Account in respect of External Debt Service Payments (1992-2002) and submitted to the Honourable Minister, Federal Ministry of Finance, with a copy to the Director-General, Debt Management Office (DMO);
    2. It is the responsibility of each participating State to establish its case and taking into consideration that the burden of proof rests with the State.

    iii. The use of Consultants by any State is not acceptable. States should forward their submissions directly to the Committee.

    1. Each submission by States should be accompanied by the following documents:
    2. Demand Notices from Creditors on a loan-by-loan basis in respect of loans on which claims are based;
    3. Details of all States’ loans
    4. Loan Agreements;
    5. Evidence of Payments to the Creditors (authorised by the Creditors);
    6. Evidence of deductions from the States’ Revenue Allocation;
    7. Category of debts on which claims are being made;
    8. Evidence of amount outstanding on a year-by-year basis (from 1992- 2002);
    9. Where applicable, for every claim, there should be confirmation of the status of the debt by the creditor; and,
    10. Any other relevant information/document.

    “The Federal Government would issue long tenored instruments of between 5 to 10 years to States with valid claims of over deduction, as a means of refunding the States.”

  • Terms for states as N500b Paris Club refund is ready

    Terms for states as N500b Paris Club refund is ready

    Presidency gets ‘damning’ feedback on first tranche

    Another London-Paris Club loan refund (about N500billion) is on the way for states— with fresh hurdles for governors.

    The Presidency has made it mandatory for all the states to account for the first tranche of the loan refunds – in line with the agreement  it reached with the Nigerian Governors Forum (NGF).

    States implicated in the mismanagement of the first tranche may not get the fresh funds.

    Some of the 36 governors are being investigated by the Economic and Financial Crimes Commission(EFCC) for allegedly diverting the first tranche of the refund.

    The governors (seven are involved in the scandal) engaged some curious consultants, who got part of their states’ share of the refund.

    Part of the funds was allocated to some National Assembly leaders who had no business with the refund, it was learnt.

    The Nation gathered that the Presidency was set to release fresh refund to states —in line with President Muhammadu Buhari’s determination  to rescue the 36 states from economic collapse.

    A source, who spoke in confidence, said: “The government is about to release another tranche of London-Paris Club loan refunds to states. It is about the same amount like the first tranche. Let us say about N500billion.

    “The refund is entirely the initiative of the Federal Government to improve the socio-economic situation in the 36 states. President Buhari was disturbed that many states were finding it difficult to  pay workers’ salaries and pensions.

    “But the release of the second batch of refund will be based on some conditions as agreed upon by the Presidency and the Nigerian Governors Forum(NGF). President Buhari has said that he will not accept any excuse from any governor for diverting public funds.

    “Before the first tranche was released, the NGF had an agreement with President Buhari that about 25 per cent to 50 per cent will be used to offset outstanding salaries and pensions.

    “This time around, the Presidency has made up its mind that any state which breached the agreement will not be entitled to second tranche.”

    Asked how the Presidency will know, the source added: “We have feedback from the states on how some of these governors have diverted and misused the first set of refunds. Some of them did not spend up to 15 per cent on salaries and pensions. The records are there to prove the breach.

    “ We also got reports from security agencies, labour, pensioners, concerned leaders in various states and many whistle-blowers on how the governors spent the first tranche.”

    The source described security reports on some of the governors as “damning”.

    Some governors were said to have converted the refund to personal use and the cash expended on “wasteful” projects.

    “In some instances, some projects executed have no bearing with the needs of some states. It is quite sad,” the source said.

    The investigation of the EFCC into the disbursement of the first refunds confirmed that some of the governors were involved in illegal deductions and remittances into NGF account. I think about seven of them were actively involved.

    “The position of the Presidency is that governors implicated in London-Paris Club fraud may forfeit refunds to their states. We will reveal the outcome of investigation on some of the governors for the people of their states to know why such a punitive measure is necessary.”

    Another top government source, who confirmed the moves to reimburse states, however, said: “The second tranche will be released based on the compliance of states with Fiscal Sustainability Plan(FSP), which was endorsed by all the governors at a meeting of the National  Economic Council (NEC) on May 19.

    “We have a benchmark which we mutually  consented to. As a matter of fact, the governors agreed that further disbursements will be based on the states meeting agreed targets and will be subject to monitoring and evaluation by Independent Monitoring Agents. States which fail to meet the targets will be excluded from this refund.”

    According to the plan by the Federal Ministry of Finance,  states will be required to:

    • set and meet targets to enhance Internally Generated Revenue (IGR);
    • establish Efficiency Units to reduce overhead costs;
    • privatise State Owned Enterprises;
    • domesticate the Fiscal Responsibility Act; and
    • limit bank loans.

    “The Federal Government has agreed to develop IPSAS compliant software for States to use, and to develop new Bond Issuance guidelines to ease access to the Capital Market for states wishing to fund developmental projects,” the source said.

    The Presidency has so far released N1, 266.44trillion to the states in the past one year including N713.70billion special intervention fund.

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

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

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

    The Presidency directed the states to devote a minimum of 50 per cent of any amount disbursed to address “challenges associated with salaries and pensions”.

    Some governors are said to have failed to disclose the actual amount given to their states.

    Some of the governors have devoted only 10 to 25 per cent of the funds to the payment of backlog of salaries.

  • 33 states without RECs as five retired today

    33 states without RECs as five retired today

    •INEC redeployed senior officials in Rivers 

    Thirty-three states will be without Resident Electoral Commissioners as five are due for retirement today.

    Before now, 28 RECs had retired.

    A tweet by the Independent National Electoral Commission yesterday said: “By March 4, five more RECs will complete their tenure. This is in addition to the 28 RECs who had earlier completed their tenure.

    “Those leaving are: Prof. Jacob Jatau (F.C.T), Mr. Segun Agbaje (Ondo), Austin Okojie (Bayelsa) and Mr. Nasir Ayilara (Niger).”

    A statement signed in Abuja yesterday by National Commissioner, Mrs. May Agbamuche-Mbu, confirmed the retirement of the five commissioners.

    “We thank these gentlemen for their contributions to the work of the commission over the last five years and wish them well in their future endeavours,” the statement said.

    The commission said it would next week consider the final report of the investigation of 202 officials from 14 states mentioned by the Economic and Financial Crimes Commission (EFCC).

    INEC said it would redeploy its directing staff, which include the Administrative Secretary, heads of departments, deputy directors and assistant directors as well as all the 23 electoral officers, who head its local government offices out of Rivers State immediately.

    The statement said: “You may recall that late last year, the commission received a report from the EFCC in which some of our staff were accused of certain infractions. We would like to update you on the matter. A total of 202 INEC officials from 14 states were mentioned in the report.

    “Based on the EFCC’s interim report, the commission subsequently queried and invited them to appear before an administrative panel. The final report of the investigation into the matter will be considered by the commission at its meeting next week.

    “As we informed you last week, the commission received the report of its Administrative Panel on the December 10, 2016 Rivers State re-run elections. Twenty-nine members of staff were recommended for disciplinary action, and their cases are currently being handled by the commission’s Disciplinary Committee.

    “Still on the report on the administrative panel on the Rivers re-run elections, we informed you earlier that the commission’s office in Rivers State will be overhauled. In so doing, all the directing staff, that is, the administrative secretary, all heads of department, deputy directors and assistant directors as well as all the 23 electoral officers, who head our local government offices are being redeployed out of Rivers State immediately.

  • NGO empowers girls in four states with £7m

    A Non-Governmental Organisation, Mercy Corps, has empowered female adolescents from four states with £7 million.

    Country Director Iveta Ouvry, in a statement yesterday, said the initiative was funded by the UK Department for International Development (DFID) and other donor partners, to create educational and economic opportunities for marginalised girls and young women in Nigeria, through its Educating Nigerian Girls in New Enterprises (ENGINE) initiative.

    According to her, ENGINE, in the last four years, had established 1,050 centers for academic and entrepreneurial training across Abuja, Kano, Kaduna and Lagos States, where 14,030 out-of-school and 4,654 in-school girls are being supported.

    Ouvry noted that Civil Society Organisations (CSOs) have been partners in the project to enable proper monitoring and evaluation of its progress.

    The project is being extended by three years to cover other parts of the country.

    Her words: “Since 2013, ENGINE has established over 1,050 learning spaces where young women meet for academic support and entrepreneurship training sessions over a nine-month period.

    “The project supported 14,030 out-of-school girls and expands their businesses of choice; facilitated school retention for 4,654 girls who have maintained passing grades.

    “Together, Nigeria Bottling Company (NBC) and DFID have invested £7 million in the implementation of ENGINE. The investment is part of the UK’s Girl-Education Challenge and NBC’s 5 by 20 initiative, which seeks to enable the economic empowerment of five million female entrepreneurs across the globe in its value chain by 2020.

    “In partnership with the National Identity Management Commission (NIMC), 11,360 girls were registered for electronic identification cards and over 8,000 financially excluded girls now participate in the formal banking system.

    “The second phase will begin with the extension of the project for another three years and extended to the south.”

    Legal Public Affairs and Communication Director of NBC Sade Morgan said the firm partnered Mercy Corps by providing financial education, logistics trade assets and mentorship, to sustain the vision.

  • More states benefit from Fed Govt’s school feeding programme

    More states benefit from Fed Govt’s school feeding programme

    The Presidency  yesterday  said more states are benefiting from the Federal Government’s school feeding programme.

    A statement by the Senior Special Assistant on Media and Publicity, Laolu Akande, said the Federal Government had so far released over N375 million to feed almost 700,000 primary school pupils in five states.

    He said almost all the states  except two, are now being processed for the payment of N30,000 monthly stipends to 200,000 graduates who are N-Power beneficiaries.

    Akande said Buhari’s Social Investment Programme is on-going.

    He said the Federal Government last week released money for this year, to Anambra, Ogun, Oyo, Osun and Ebony states  to cover the feeding for 10 school days under the  Homegrown School Feeding Programme.

    He also said N375, 434, 870 had been paid to 7909 cooks in those states for the feeding of 677, 476 primary school pupils.

    Other breakdowns released by Akande are: “Ogun State got N119, 648, 900 paid to 1381 cooks to feed 170, 927 pupils.

    “Ebonyi State got N115, 218, 600 paid to 1466 cooks to feed 164, 598 pupils.

    “Anambra State got N67.5m paid to 937 cooks to feed 96,489 pupils.

    “Oyo State got N72.2m paid to 1437 cooks to feed 103, 269 pupils.

    “Osun State got N867,370 paid to 2688 to feed 142, 193 pupils.”

    According to him, the monies were paid directly to the cooks for ten days of school.

    He said the figures would go up this week when Zamfara and Enugu States are paid N188.7 million and N67.2 million.

    He said: ‘In Zamfara, the money would be paid to 2738 cooks to feed 269, 665 pupils. And in Enugu, the money would be paid to 1128 cooks to feed 96, 064 pupils.

    “By then,  over N631 million would have been released so far in 2017 for school feeding in 7 states, paid to 11,775 cooks and meant to feed over one million primary school pupils-exact number of pupils by then would be 1, 043, 205.”