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FG, Delta Government disagree over N19 trillion external debt

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…As Federal agencies fail to remit N1.695tr’***

The Delta State Government has disagreed with the Federal Government claims that the state’s external debt was N16 trillion out of N19 trillion, saying the figures do not represent the true position of its external loans debts.

The State Government specifically stated that out of the N19 trillion, the state are only responsible for N3 trillion, adding that the figures published by the Federal Government were incorrect.

Report published by the Federal Government recently said the states were responsible for external loans of N16 trillion out of N19 trillion.

But the State Commissioner for Finance, David Edevbie at a media briefing yesterday in Asaba, told journalists that the Federal Government’s figures were misleading and untrue.He described the situation as ‘shifting blames,’ adding that the state had received N33.5 billion Paris Club refund and N109 billion bailout fund.

It also released N3.26 billion with interest to local councils in the state, while N3.5 billion was spent on the payment of salaries and others payments.Edevbie insisted that N500 million was released for the payment of pensions out of the N2 billion outstanding on the presidential directive that the Paris refund be used for the payment of salaries by the state governments.

“It is totally not true and out of place. I’m sure President Muhammadu Buhari did not give that directive,” he said.He also disclosed that part of the Paris Club refund was spent on projects and payment of salaries, adding that N2 billion was released to local councils to off-set part of their outstanding backlog of salaries.

Edevbie explained that Delta State Government, in line with its electioneering promises, spent 58 per cent of the Paris Club refund on salaries and pensions, adding that the state government inherited N11.5 billion unpaid pensions and N3.6 billion, leaving an outstanding debt of N8.2 billion.

Earlier, the State Commissioner for Economic Planning, Kingsley Emu told journalists that N298 billion budget proposals for 2018 was enough to move the state forward in infrastructure development and other recurrent needs.

He assured the people of Delta that Governor Ifeanyi Okowa administration would provide the dividends of democracy and blamed the financial setback of the state on the Niger-Delta crisis.

Meanwhile, the Okurbo and Otumara communities in Oghara, Ethiope West Local Council of Delta State yesterday protested the alleged acquisition of their land by officials of the Nigerian Navy Logistics Command.

They have, therefore, threatened continued unrest until compensations are paid or their land is restored to them.To register their grievances, members of the communities staged a peaceful protest to Government House, Asaba in the early hours of yesterday.

They carried placards with inscriptions: Navy Give Us Back Our Land and We Need Our Land, among others, were, however, addressed by officials of the state who assured of government’s efforts to ensure peace prevails in the area.

The protesters alleged that the Nigerian Navy forcefully occupied their land measuring 600 x 600 hectares after several representations to the Navy’s authorities for settlement or compensation proved abortive.

But an officer of the Navy in the area, who pleaded anonymity, debunked the allegations as untrue, adding that the leaders of the communities approved the land in question for the Navy over ten years ago.

It was gathered that Oghara people had in their claims through a court injunction, demanded that the Navy vacate their land on which they said they intended to build houses and establish other business.

Spokesman for the communities, Lucky Akormire in a swift reaction said: “In 2006 when the Nigerian Navy requested for the land for construction of a barrack, a piece of land, which was initially meant for the Nigerian Mobile Force, was traded to them but the police relocated to Oghara.”

In the meantime, the Senate ad-hoc committee probing misuse and under remittance of Internally Generated Revenue (IGR) has uncovered over N1.695 trillion unremitted by Federal Government agencies.

The committee is also investigating other fraudulent activities in collection, accounting, remittance and expenditure of IGR.

The nine-member committee headed by Senator Olamilekan Solomon Adeola, in its interim report submitted to the Senate on October 19, 2017 said  26 agencies generated a total of N21, 909,831,657,897 between January 2012 and December last year but lamented that  a total of N1.695,585,887,406 was not remitted to Federal Government account by the agencies within the period.

It said that the Nigeria National Petroleum Corporation (NNPC) operated a deficit account of N3,115,495,257,000,000 within the period under review.

A total of 93 agencies came under the search light of the committee.

All the federal universities, federal colleges of education, federal cooperative and agricultural colleges, federal science and technical colleges, federal government colleges and others were also scrutinised.

For instance, the committee observed that the Nigeria National Petroleum Corporation (NNPC) generated N15,541,690,052,000,000 within the period and recorded a deficit of N-3,115,495,257,000,000.

The implication of the figure for the NNPC is that it operated at a loss within the period under review.

The Nigerian Television Authority (NTA) recorded N56,817,976,306.00 as generated revenue  within the period while its total under remittance stood at N5,567,831,176.00.

The Corporate Affairs Commission (CAC) generate N56,319,706,498.83 but posted N2,907,940,808.00 under remittance.

The Bureau of Public Enterprise (BPE) generated N479,115,404,000.00 and recorded under remittance of N70,485,698,800.00; the Sugar Development Corporation of Nigeria generated N16,258,122,423.14 and recorded under remittance of N5,595,130,103.10; Securities and Exchange Commission (SEC) generated N30,229,951,000.00 but its under remittance was not stated.

The Nigeria Customs Service (NCS) generated N335,855,575, 759.53 within the period under review and recorded under remittance of N83, 963,893,939.88.

It also said 25 per cent revenue of the NCS was not reported.

The committee said  the Nigeria Electricity Commission generated N25,422,019,784.70 and had under remittance of N20,319,552,361.75.

Nigeria Nuclear Regulatory Authority generated N4,663,198,042.93 and had under remittance of -827,489,066,.14

The committee explained that 25 per cent revenue paid into the Consolidated Revenue Fund while the remaining expenses were over bloated.

The Federal Airport Authority of Nigeria (FAAN) generated N227, 301, 592,242.00 and under remitted  N19,242,300,027.30

Thee Nigeria Shipper Council made N25,405,401,068.82 but failed to remit N69, 322,017,22

The Federal Inland Revenue Service (FIRS) generated N445,544,388,514.54 and under remitted N33,833,232,873.33.

The Nigeria Teachers Institute generated N13,163,057,006.78 and failed to remit N984,013,375,39 while the Federal Radio Commission of Nigeria generated N6,954,353,171.59 and recorded under remittance of N1,211,179,042.40.

The Petroleum Products Pricing Regulatory Agency (PPRA) generated N11,560,619,050.20, remitted N1,965,574,296.76 and failed to remit N1,778,116,748.16.

The committee said PPPRA partially paid 25 per cent of its revenue while it over bloated the remaining expenses.

The Committee said the Nigerian Maritime Administration and Safety Agency (NIMASA) generated N301,160,118,548.47 and under remitted  N184,489.203,618.25.

It said  the National Health Insurance Scheme (NHIS)  generate nil revenue(2012-2014), made a total expenditure of N680,918,000, remitted nothing while its under remittance was put at N6,144,,734,400.00.

The committee said the Nigerian Communication Commission (NCC) generated N217,104,325,000.00 and under remiited N47,373,814,269.18.

The committee also said the Nigeria Ports Authority (NPA)ge nerated N789,029,440,000.00 and under remitted N86,636,886,800.00

It said the Joint Admissions and Matriculation Board (JAMB) generated N49,157,057,019.00 and under remitted N636,095,144.18

The Central Bank of Nigeria (CBN) was said to have generated N3,098,157,000,000.00  but under remitted N13,716,755,284.00.

The Nigeria Bulk Electricity Company generated N1,320,039,182.02 and recorded under remittance of N644,045,677.73.

The report is slated for consideration this week.

Guardian NG with additional report from Nation

Economy

FAAC: FG, States, LGs Share N1.208trn Revenue For April

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FAAC: FG, States, LGs Share N1.208trn Revenue For April

The Federation Account Allocation Committee (FAAC), has shared the sum of N1.208 trillion as revenue for April among the Federal Government, states and Local Government Councils (LGCs).

The revenue was shared on Thursday at the May meeting of FAAC in Abuja.

A communiqué issued by the committee said that the N1.208 trillion total distributable revenue comprised statutory revenue of N284.716 billion, and Value Added Tax (VAT) revenue of N466.457 billion.

It also comprised Electronic Money Transfer Levy (EMTL) revenue of N18.024 billion, and Exchange Difference revenue of N438.884 billion.

The communique said the total revenue of N2.192 billion was available in April.

“Total deduction for cost of collection is N80.517 billion; total transfers, interventions and refunds is N903.479 billion.

The communique said the Gross statutory revenue of N1.233 billion was received for the month under review. This was higher than the sum of N1.017 billion received in March by N216.282 billion,” it said.

It said that the gross revenue available from VAT in April was N500.920 billion, which is lower than the N549.698 billion available in March by N48.778 billion.

The communiqué said that from the N1.208 trillion total distributable revenue, the Federal Government received N390.412 billion, the state governments received N403.403 billion and the LGCs received N293.816 billion.

“A total sum of N120.450 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

It said that on the N284.716 billion distributable statutory revenue, the Federal Government received N112.148 billion, the state governments received N56.883 billion and the LGCs received N43.855 billion.

It said that the sum of N71.830 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“The Federal Government received N69.969 billion, the state governments received N233.229 billion and the LGCs received N163.260 billion from the N466.457 billion distributable VAT revenue.

“A total sum of N2.704 billion was received by the Federal Government from the N18.024 billion EMTL, the state governments received N9.012 billion and the LGCs received N6.308 billion.

“The Federal Government received N205.591 billion from the N438.884 billion Exchange Difference revenue; the state governments received N104.279 billion, and the LGCs received N80.394 billion.

“The sum of N48.620 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

According to the communiqué, Oil and Gas Royalties, Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), EMTL and CET Levies increased significantly.

It, however, said that Import Duty and VAT recorded considerable decreases.

“The balance in the ECA was 473.754 million dollars.

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Extension Of Nigeria’s Continental Shelf As Lesson On Continuity

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Extension Of Nigeria’s Continental Shelf As Lesson On Continuity

On May 14, the High Powered-Presidential Committee on Nigeria’s Extended Continental Shelf Project was in the Presidential Villa, Abuja.

The committee came to brief President Bola Tinubu on recommendations given to Nigeria regarding its submission for an extended continental shelf by the United Nations Commission on the Limits of the Continental Shelf (CLCS).

The briefing was led by veteran diplomat, Amb. Hassan Tukur, the Chairman of the committee.

The update with the president featured technical presentations by Prof. Larry Awosika, a renowned marine scientist and Mr Aliyu Omar, Member/Secretary of the Committee and former staff of the National Boundary Commission (NBC).

Omar also served as the Desk Officer for the project office in New York for several years.

Worthy of note, Nigeria’s request to have it continental shelf extended was approved by the CLCS in August 2023.

The project, which aims to extend Nigeria’s maritime boundaries under the United Nations Convention on the Law of the Sea (UNCLOS), has granted Nigeria sovereignty over an additional 16,300 square kilometres of maritime territory.

This is roughly five times the size of Lagos State.

The CLCS is mandated to, inter alia, consider the data and information submitted and provide recommendations on the outer limits submitted by the coastal state.

Article 76 of UNCLOS (1982) allows a qualifying coastal state to extend its continental shelf up to a maximum of 350M (350 nautical miles) or 150m nautical miles beyond its traditional Exclusive Economic Zone of 200 nautical miles.

Extension Of Nigeria’s Continental Shelf As Lesson On Continuity
President Bola Tinubu receiving Nigeria’s CLCS report from the committee

The continental shelf is the natural submerged prolongation of its land territory.

The journey to extend Nigeria’s continental shelf project began in 2009 with the country’s submission to the CLCS.

The project faced delays due to a lack of funds and administrative challenges; in 2013 the Senate of the Federal Republic in its resolution of Feb. 14, 2013, urged the Federal Government to fund the project and set up an independent body to handle it.

However, it was only in November 2015 that the then President Muhammadu Buhari revitalised it.

Subsequently, he appointed the High-Powered Presidential Committee (HPPC), headed by the former Minister of Justice and Attorney-General of the Federation, Malam Abubakar Malami, to oversee the project.

The HPPC operated as an independent technical body, effectively managing the project by cutting down on government bureaucracy.

Omar had led the Nigerian Technical Team through the question-and-answer sessions with the UN Commission on the Limits of the Continental Shelf (CLCS).

He was also the Member/Secretary of the HPPC with a strong institutional memory of the project, highlighted this during the committee’s briefing to President Tinubu on May 14.

Omar said that when the HPPC briefed Buhari in 2022 on the status of the project, the United Nations Commission on the Limits of the Continental Shelf (CLCS) was still considering Nigeria’s submission and having technical interactions with the HPPC.

”These interactions and consideration have now culminated in the approval for Nigeria to extend its continental shelf beyond 200M (200 nautical miles).

”As it stands now, the area approved for Nigeria is about 16,300 square kilometres, which is about five times the size of Lagos State”, he said.

Nigeria’s extended continental shelf is in an area that is referred to as the ‘Golden Triangle of the Gulf of Guinea’ due to its abundance of natural resources such as hydrocarbons, natural gas, and a variety of solid minerals.

Awosika, a pioneer member and former Chairman of the CLCS, explained that the technical team’s work involved lengthy processes.

He said it also required highly technical steps in the acquisition, processing and analysis of extensive marine scientific data offshore Nigeria’s margin for the submission to the UN CLCS.

He said that the Nigerian team had to defend the submission with the CLCS which involved highly technical question-and-answer sessions and provision of additional data and information.

Receiving the report, Tinubu commended the members of the technical team for working tirelessly.

He applauded their high technical and scientific expertise and solidarity to national cause throughout the eight years of service to the nation before an agreement was finally reached with the UN CLCS in August 2023.

It is instructive to note that Tinubu highlighted the interactions he had with his predecessor, Buhari, on the project; given that it was he, Buhari, who set up the HPPC to oversee the project in 2015.

Tinubu recounted how Buhari briefed him on the importance of the project.

”This is a big congratulations for Nigeria. I commend the team and we must take advantage of this and invite you again to have a repeat of this knowledge exploration on geography, hydrography and marine life.

”Nigeria is grateful for the efforts that you put into gaining additional territory for the country without going to war; some nations went to war; and lost people and economic opportunities.

”We lost nothing but have gained great benefits for Nigeria; we will pursue the best option for the country,” Tinubu said.

Tinubu has also promised to ‘pursue the best option for the country’ on the project, even though the CLCS recommendations fall short of Nigeria’s submitted claim.

Perceptive observers say the achievement is a lesson on the importance of continuity in government projects. Abandoning projects due to changes in administration can lead to wasted resources and lost opportunities.

The extended continental shelf is a significant achievement of Tinubu’s administration and to Nigeria.

According to experts, this is something that has never happened in the nation’s history, and may never happen again.

By learning from the ECS project, Nigeria can improve its approach to governance and project management, ensuring that with perseverance and continuity strategic initiatives are completed despite challenges.

The ECS project, initiated in 2009, faced delays and funding issues but persistence through the efforts of the immediate past administration paid off, and was finally approved by the UN in August 2023, shortly after Tinubu assumed office.

The country has taken note of articles 7 and 8 in Annex II to the Convention on the Law of the Sea concerning recommendations received from the CLCS.

The project also demonstrates the importance of long-term thinking in governance.

Discerning stakeholders hold that while the project’s benefits may not be immediate, it will surely have a significant impact on Nigeria’s economy and maritime boundaries in the future.

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Naira Gains N61.38 Against Dollar At Official Market

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Naira Gains N61.38 Against Dollar At Official Market

The Naira on Wednesday appreciated at the official market, trading at N1,459.02 to the dollar.

Data from the official trading platform of the FMDQ Exchange revealed that the Naira gained N61.38.

This represents a 4.04 per cent gain when compared to the previous trading date on Tuesday, when the local currency exchanged at N1,520.40 to a dollar.

Also, the total daily turnover increased to 289.14 million dollars on Wednesday up from 128.76 million dollars recorded on Tuesday.

Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,593 and N1,401 against the dollar. 

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