Governors seek more cash from Federation Account

Published

8 years ago

April 29, 2016

Maritime First

As Pres. Buhari raises alarm over inability of states to pay salaries after bail-out

Governors are seeking an amendment of the revenue allocation formula to increase their revenue base.

This, they believe, is the way out of the states’ financial crisis.

The states share 26 per cent of the revenue in the Federation Account. The Federal Government takes 52 per cent.

Yesterday at a meeting with President Muhammadu Buhari at the Villa, the proposal was tabled.

But the President was concerned that that nearly two-thirds of states are still having difficulties with salary payments despite the bailout funds provided to them by the Federal Government.

The President made the remark in his speech at the meeting, according to a statement by his Senior Special Assistant on Media and Publicity, Mallam Garba Shehu.

The statement added that to ameliorate the hardship being faced by workers, the President said that the Federal Government will make more funds available to the states by expediting action on refunds due to them for the maintenance of federal roads and other expenses incurred on behalf of the Federal Government.

He also said he will establish an inter-ministerial committee to study the Fiscal Restructuring Plan for the Federation, which was presented to him by the governors.

The committee will review the plan to improve the finances of state governments and make recommendations on how proposals in the plan should be dealt with by the Presidency, the Federal Executive Council and the National Assembly through legislation.

President Buhari urged the governors, however, to understand that while he was ready to do all within his powers to help the states overcome their current financial challenges, the Federal Government also has funding problems to contend with.

“You all know the problems we have found ourselves in. You have to bear with us,” he told them.

Nigerian Governors Forum (NGF) Chairman Abdulaziz Yari (Zamfara) and Nasir El-Rufai (Kaduna), who chaired the committee that worked on the Fiscal Restructuring Plan, asked the Federal Government to do more to help the states financially.

The governors told the President that while they had resolved to take other measures to boost their internally-generated revenue, the implementation of the Fiscal Restructuring Plan will help them to deal with their funding problems on short, medium and long-term bases.

They said that if the plan was adopted and implemented by the Federal Government, states will become more financially empowered to fulfill their constitutional responsibilities.

Speaking with State House correspondents at the end of the meeting, Yari called for an amendment of the sharing formula to increase revenue to state.

According to him, it is impossible for state governments to save for the rainy day, with the current 26% allocation to states and 52% to the Federal Government.

On the allegation that Finance Minister Kemi Adeosun blamed state governments for their current financial crisis due to their inability to save, Yari said: “The states are only taking 26 per cent, whereas the Federal Government is taking 52 per cent and you are asking us to save?

“Anyway, I doubt if the Minister made that statement or it is coming from the media. The truth remains that the states are taking 26 per cent and the Federal Government 52 per cent; what are they doing with the money?

“We are not sovereign; so, how can we save? We are dealing with our different states’ economy, which we are trying our best to fix. Most times, we are busy shouting that what is supposed to be given to us has not been given. For the past three years, we have been asking them to show us if the excess crude has been used judiciously or not.

“So, the question of saving or not does not arise.”

Noting that the meeting is about the economy, Yari said the governors passed state-by-state demands to the Federal Government.

He said: “You will agree with me that states are the landlords; we own the land

and the people. So, therefore, the economy of this country lies in the state. Everything comes from the state, the oil, agricultural produce, mining and people are in the states while the Federal Government is in Abuja.

“So if any state has any issues and is known to Mr President, I doubt very much if he will be able to sleep with his two eyes closed.

“We are closer to the people and have many challenges in the states. Today, we have received support from the Federal Government in terms of bailout, restructured our debts, given us 15% of the Excess Crude Account for development.

“All these are temporal measures. Each state has a programme right from

short to mid and long term, which we presented to Mr. President and he graciously accepted and he plans to put a committee in place that would look at the matter starting with short term.

“For the short term, we are looking at a situation whereby our refunds that are hanging since 2005, right from Obasanjo’s exit of the Paris Club, some of the monies that were not paid, so that the states that are having difficulties can get money from there.

“Loan restructuring, bailout and ECA; we are asking for 18 months moratorium before we can start paying, so that we would be able to strategise.

“To develop IGR is not overnight; it is a long term programme that one has to plan for. And also, our workforce has increased and there is nothing we can do about it because people are getting their daily bread from there and we cannot say we are going to cut salaries and wages.

“We have to find a solution, otherwise, we would keep going back and forth because you will not achieve anything as oil been sold for $100 per barrel is now selling for $28 and $31.”

“So we have devised a plan for short term, medium term and long term. These are part of short term.”

In the meantime, President Muhammadu Buhari has raised alarm over the inability of about 24 states of the federation to pay their workers’ salaries despite the bail-out funds provided to them by the Federal Government.

The president, who was speaking at a meeting with members of the Nigeria Governors’ Forum at the Presidential Villa, Abuja on Thursday, said it was a matter of great concern to him that these states were having difficulties with salary payments. President Buhari said that he was very disturbed by the hardship which state government workers across the country and their families were facing due to the non-payment of salaries.

The president pledged that the Federal Government would strive to make more funds available to the states by expediting action on refunds due to them for the maintenance of federal roads and other expenses incurred on behalf of the Federal Government.

According to him, this is to ameliorate the hardship being faced by the affected workers in the states. He stated that Federal Government would establish an inter-ministerial committee to study a Fiscal Restructuring Plan for the Federation which was presented to him by the governors.

According to the president, the committee will review the plan to improve the finances of state governments and make recommendations on how proposals in the plan should be dealt with by the Presidency, the Federal Executive Council and the National Assembly through legislation.

While urging the governors to understand that he was ready to do all within his powers to help the states overcome their current financial challenges, the president reminded them that the Federal Government also had funding problems to contend with. “You all know the problems we have found ourselves in. You have to bear with us,’’ he told the governors.

The Chairman of the Governors’ Forum, Gov. Abdulaziz Yari of Zamfara and the Gov. Nasir El-Rufai of Kaduna State, who chaired the committee that worked on the Fiscal Restructuring Plan, asked the Federal Government to do more to help the states financially. The governors told the President that while they had resolved to take other measures to boost their internally-generated revenues, the implementation of the Fiscal Restructuring Plan would help them to deal with their funding problems on short, medium and long-term bases.

They said that if the plan was adopted and implemented by the Federal Government, states of the federation would become more financially empowered to fulfil their constitutional responsibilities. Yari, who later spoke to State House correspondents on the outcome of the meeting, said the states demanded for 18 months moratorium on the bail-funds provided some states by the Federal Government.
Nation with additional report from NAN

Related Topics:GOVERNORS FORUM President Muhammadu Buhari

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WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

Published

5 years ago

April 13, 2019

Maritime First

…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development.

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity.

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years.

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further.

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA.

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers.

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being.

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained.

Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

Published

6 years ago

March 7, 2019

Maritime First

The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

Wind Farm Vessel Collision Leaves 15 Injured

Published

6 years ago

February 20, 2019

Maritime First

…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg.

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt.

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital.

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News