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“Edo Governor Lied. We Didn’t Print N60 billion To Share To States” – Finance Minister

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3 years ago

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The Federal Government has dismissed claims by Edo State Governor Godwin Obaseki that it resorted to printing 60 billion worth of naira notes when there was no money to share to State governments as statutory allocations for the month of March.

Obaseki was quoted as saying at the Edo transition committee stakeholders engagement last week Saturday that,

“When we got FAAC for March, he Federal Government has dismissed the comments Governor Godwin Obaseki of Edo State that N60 billion was printed to augment the amount distributed to states in March 2021.

At the Edo transition committee stakeholders engagement on Saturday, Obaseki had said the money was shared at the Federation Account Allocation Committee (FAAC) meeting.

“When we got FAAC for March, the federal government printed additional N50-N60 billion to top-up for us to share. This April, we will go to Abuja and share. By the end of this year, our total borrowings are going to be within N15-N16 trillion,” he had said.

But the Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, denied Obaseki’s comment while responding to questions from State House correspondents.

She also defended the government’s borrowings despite the concern expressed by Obaseki on the rising debt profile which he said Nigeria is in ‘huge financial trouble’.

The minister, who said what is distributed at the monthly FAAC meetings were generated revenue from government institutions available to the public at the ministry’s website, added that the country’s debt is still within sustainable limits.

She said: “The issue that was raised by the Edo State Governor for me is very, very sad. Because it is not a fact. What we distribute at FAAC is a revenue that is generated and in fact distribution revenue is a public information.

“We publish revenue generated by FIRS, the customs and the NNPC and we distribute at FAAC. So, it is not true to say we printed money to distribute at FAAC, it is not true.

“On the issue of the borrowing, the Nigerian debt is still within sustainable limit. What we need to do as I have said several times is to improve our revenue to enhance our capacity to service not only our debt but to service the needs of running government on day to day basis.

“So, our debt currently at about 23% to GDP is at a very sustainable level. If you look at all the reports that you see from multilateral institutions.”

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Economy

Local Government Autonomy: FG Sets Up Committee on Enforcement

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3 weeks ago

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August 20, 2024

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By Sule Musa

The Secretary to the Government of the Federation (SGF), Senator George Akume, CON, has inaugurated an Inter-Ministerial Committee to enforce the Supreme Court judgement delivered on 11th July, 2024 granting financial autonomy to Local Governments in Nigeria.

A statement by Segun Imohiosen, Director, Information & Public Relations in the office of the SGF said the members of the committee include:

1. Secretary to the Government of the Federation – Chairman

2. Hon. Minister of Finance & Coordinating Minister of the Economy -Member

3. Attorney General of the Federation & Minister of Justice – Member

4. Hon. Minister of Budget & Economic Planning

5. Accountant General of the Federation

6. Governor, Central Bank of Nigeria

7. Permanent Secretary (Federal Ministry of Finance)

8. Chairman, Revenue Mobilization Allocation & Fiscal Commission

9. Representative of State Governors

10. Representative of Local Governments

According to the statement, the committee’s primary goal is to ensure that local governments are granted full autonomy, allowing them to function effectively without interference from state governments.

Inaugurating the committee,  the Secretary  to  the  Government of the Federation,  and Chairman of the Committee,  Senator George Akume,  this move is in line with President Bola Ahmed Tinubu’s efforts to ensure appropriate implementation to the provisions of the Constitution, which recognizes local governments as the third tier of government.

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Economy

Breakdown of FAAC’s N1.358tn July allocation to FG, states, LGs

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3 weeks ago

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August 18, 2024

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The Federation Account Allocation Committee said it disbursed N1.358.075 trillion to the three tiers of Government in Nigeria as July allocation.

The was contained in a statement by the Director of Information and Public Relations, Ministry of Finance, Mohammed Manga on Friday.

The disbursed N1.358.075 stems from the total gross N2,613.791 trillion revenue generated in July 2024.

In the period under review, the distributable allocation comes from Statutory Revenue of N161.593 billion, Value Added Tax revenue of N528.307 billion, N18.818 billion from Electronic Money Transfer Levy (EMTL), N581.710 billion from Exchange Difference and N13.647 billion.

The federal government received N431.079 billion, states got N473.477 billion, local government councils got N343.703 Billion, while the oil-producing states received N109.816 billion, representing 13 percent derivation or mineral revenue.

This is a slight increase from the figure distributed in June, which stood at N1.354 trillion.

A further analysis of July’s allocation showed that the sum of N99.756 billion was given for the cost of collection by the Government’s revenue-generating agencies, while N109.816 billion was allocated for transfer intervention and refunds.

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Business

CBN Approves Merger of Unity and Providus Banks

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1 month ago

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August 7, 2024

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The Central Bank of Nigeria (CBN) on Tuesday announced the approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and the Providus Bank Limited.

The Apex Bank, in a statement by its acting Director of Corporate Communications, Hakama Sidi-Ali, said the move is designed to bolster the stability of the nation’s financial system and avert potential systemic risks.

“The merger is contingent upon the financial support from the CBN. The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders,” the statement read.

“It is unequivocal to state that the CBN’s action is under the provisions of Section 42 (2) of the CBN Act, 2007. This arrangement is crucial for the financial health and operational stability of the post-merger organisation.

“It is important to emphasise that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.”

The CBN said it remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.

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