The federal government has initiated moves to recover the sum of N614 billion which it gave out as bailout to 35 states of the federation to clear their workers’ salaries.
The recovery of the funds will be undertaken by a task force, which the federal and state governments jointly set up yesterday in Abuja at a meeting of the National Economic Council (NEC).
Finance, Budget and National Planning minister, Hajia Zainab Ahmed, disclosed this to State House correspondents after the NEC meeting which was presided over by Vice President Yemi Osinbajo at the presidential villa, Abuja
The task force members would be drawn from the Nigeria Governors’ Forum (NGF), who will liaise with the Central Bank of Nigeria (CBN) and the ministry of finance on the recovery of the loans.
The minister had briefed NEC on how the federal government made over N614 billion disbursed to 35 states at N75 billion each.
Ahmed said: “Council agreed to constitute a team from the Nigerian Governors’ Forum to meet with the CBN and the Ministry of Finance to finalise modalities for the commencement of the repayment of the loans.
Recall that in 2015, a salary loan of about N338billion was disbursed to the states by the federal government with a repayment period of 20 years. The loan was to help the states facing fiscal problems to meet their salary obligations.
A year after (in January 2016), the federal government approved another N7.85billion to assist state governments with revenue shortfalls from the dividends remitted to it by the Nigeria Liquefied Natural Gas (NLNG).
Also in July 2016, the federal government endorsed the release of N3.6billion from solid minerals savings to the states as part of the routine monthly Federal Allocation Account Committee (FAAC) disbursements.
Another N117.3billion was also disbursed to the states from the excess revenue from Petroleum Profit Tax (PPT).
The finance minister told the NEC that balances in the Excess Crude Account as at 20th August, 2019 was $95.329billion.
During his briefing, Edo State governor, Godwin Obaseki, said that an update on polio eradication was presented by the minister of Health, Dr. Osagie Ehinare and other health officials.
He noted that 21st August, 2019 marked a three-year milestone of no new case of Wild Polio Virus (WPV) in Nigeria.
He stressed the need to improve the quality of the campaigns and increase routine immunisation in order to stop the outbreak of the CVDPV2
He, however, identified some challenges as lack of counterpart funds by the local government chairmen in achieving successful routine immunisation and insecurity concerns in parts of the country.
The Nasarawa State Governor Abdullahi Sule and his Jigawa State counterpart, Abubakar Badaru, gave an update on the NEC committee on export promotion.
He explained that the report is sequel to the Zero Oil Plan envisioned in the Economic Recovery and Growth Plan (ERGP) which was developed by the Nigeria Export Promotion Council (NEPC).
Sule said the plan details on non-oil export sector as the last line of defence for the Nigerian economy.
According to him, “the implementation of the plan is expected to yield results in the key areas,” and add an extra S150 billion (minimum) to Nigeria’s foreign reserves cumulatively from non-oil exports over the next 10 years; create 500,000 jobs annually, lift 20 million Nigerians out of poverty and contribute towards SDG’s ‘’No Poverty.’’
The governor added that other achievements of the Zero Oil Plan included non- oil exports (excluding natural gas) have risen from $1.17 billion in 2016 to S$3.16 billion in 2018 meaning that strategic sectors identified in the plan have seen growth.
NFIU Guidelines: Govs Exploring Other Options
Also yesterday, governors of the 36 states said they were exploring other options on the Nigerian Financial Intelligence Unit (NFIU) directive that they should not tamper with funds accruing to the local governments from the Federation Account.
The chairman of the NGF and Ekiti State governor, Dr. Kayode Fayemi, told newsmen after a meeting of the forum in Abuja on Wednesday night.
When asked on the governors’ next line of action regarding the NFIU guidelines, he said, “we are in court and we are exploring other options”.
Recall that the NFIU had in May stopped the governors from tampering with the monthly allocations of the LGs in their states.
NFIU had banned transactions on state and local governments’ joint accounts, arguing that such accounts were only transitional accounts from where funds should go directly to the accounts of local governments.
The NFIU had also placed a limit on cash withdrawals from local governments accounts to a maximum of N500,000 per day and warned banks to ensure strict compliance..
The NFIU, which was excised from the Economic and Financial Crimes Commission (EFCC) set June 1, 2019, as the takeoff date of the new order.
The governors had described as illegal the NFIU’s ban on transactions on state and local governments’ joint accounts, arguing that such accounts are only transitional accounts from where funds should go directly to the accounts of local governments.
At the Wednesday’s meeting, the governors deliberated on several issues with the NGF deputy chairman, Governor Aminu Tambuwal of Sokoto State briefing the Forum on its meeting with the African Development Bank (AfDB), whose officials came with existing and potential Chinese investors in Nigeria.
Tambuwal said: “The meeting as part of a series of high-level engagements driven by the AfDB to promote the establishment of Special Agro-Promising Zones (SAPZs) in Nigeria, which will bring together the farming and processing community has the potential of attracting about $1 billion from the AfDB and up to $4 billion with the entry of private sector investors.
“Following an update from the NGF Secretariat on Basic Health Care Fund (BHCF), State Health Insurance Agency and the fact that Nigeria has been polio-free for three years and on the verge of being certified polio free, members resolved to continue to support the actualisation of universal health coverage in the country.
The forum received a presentation on the forthcoming state of the States’ Conference scheduled to hold from 26th, 27th November, 2019, from Scott Sheldon the managing director of CWC.
The chairman of the forum said that the governors pledged to “ack with the team from CWC to deliver on the objectives of the conference.”
Fayemi also said that the forum received a presentation on polio eradication from Rotary International Nigeria PolioPlus Committee, led by Dr. Tunji Funsho.
“The governors expressed willingness to prioritise routine immunisation coverage in the states to ensure that Nigeria is declared polio-free and ensure sustainability moving forward,” he said.
13 Niger LGs Can’t Pay Salaries, Says NULGE
Following the implementation of the NFIU guidelines on direct allocation to LGs, the Niger State chapter of the National Union of Local Government Employees (NULGE) has said that 13 of the 25 councils in the state cannot pay their staff salaries.
The state chairman of NULGE, Abdulkareem Lafene, said the situation was made difficult because of the non-remittance of 10 per cent by Niger State government of its Internally Generated Revenue (IGR) to the state and local government joint accounts as provided for by law.
The affected councils are Chanchaga, Bida, Suleja, Kontagora, Mokwa, Paikoro, Shiroro, Lavun, Lapai, Agaie, Paikoro, Rijau, and Tafa.
According to him, in the last three months, the councils had struggled to meet up the payment of their staff salaries,.
He expressed concern that it might get worse if nothing was done to address the situation.
The NULGE boss suggested that the NFIU should set up a monitoring committee to “go round the country to ensure strict compliance with the guidelines” adding that “punishments should be put in place for those not implementing the NFIU guidelines to the letter.”
Nigeria’s LGs Have No Budgets – Falana
Meanwhile, Lagos lawyer, Mr. Femi Falana (SAN) has said that Nigerians don’t pay attention to budget preparation and execution in states. He added that most of the 774 local government areas in the country don’t run on budgets.
Falana said that the focus of the fight against corruption must not be centred at the federal level alone, adding that the searchlight must move to the states and local governments.
Speaking at the “Anti-corruption Situation Room” programme organised by the Human and Environmental Agenda (HEDA) to set the stage for the 9th National Assembly, Falana said that apart from the budget passed by the federal lawmakers, no one talks about states’ budgets.
“There is so much attention on the National Assembly when it comes to speaking about corruption but attention is not paid on state budgets. If the state governments are not prepared to help in the fight against corruption, we are in trouble. No local government has a budget in all the 774 LGAs,” Falana said, stressing that the problem about “Nigeria is impunity. “
Falana canvassed the establishment of People’s Bank where the poor can get loans without paying back through their nose and advised the anti-corruption agencies to always consider the poor in carrying out their duties.
“In fighting corruption, the anti-corruption agencies should spell out the right of the poor,” Falana said.
The keynote speaker and a former member of the House of Representatives, Hon. Oladele Kayode, said that corruption has assumed an alarming dimension in Nigeria.
“By 2030, corruption will cost the country 30 per cent of its Gross Domestic Product (GDP),” Kayode said, adding that the proposed legislation which will strengthen the fight against corruption should be considered as a major national importance.
The chairman of the occasion, Prof. Shehu Abdullahi, asked the National Assembly to scrutinise the budget processes and padding or manipulation.
He said that constituency projects was a good idea but declared that the management was wrong.
The chief of staff to the Deputy Senate President, Dr. Otive Igbuzor, said that the executive must work with the legislature to fight corruption.
The director-general, National Orientation Agency (NOA), Dr. Garba Abare, who said the agency would continue to sensitise Nigerians on the effect of corruption and stated that the local governments were faced with the challenges of corruption.
A director with ActionAid, Ene Obi, who said corruption was evil, added that Nigerians should not think it only exists at high places.
A representative of the McAthur Foundation, Dayo Olaide, said that the challenge of corruption was clear and appealed to Nigerians to move away from name-calling to action. He said that it appears as if the country has lost capacity to enforce its laws.