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Ondo IGR now N2.2 bn monthly- Akeredolu

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Ondo IGR now N2.2 bn monthly- Akeredolu

…FG urges state govts to consider IGR as critical instrument of funding***

Gov. Oluwarotimi Akeredolu of Ondo State on Monday announced an increase in the Internally Generated Revenue (IGR) of the state from N750 million to N2.2 billion monthly since the inception of his administration.

Akeredolu disclosed this in Akure during the induction of the second batch of 171 new employees of the Ondo State Internal Revenue Service (ODIRS)

He explained that the revenue was hovering between N650 and N700 million, adding that it had grown to about N1.5 billion by 2018

“By 2019, our average monthly revenue grew to N1.75 billion. This year, we have generated N2.2 billion for January,” he said.

The governor also advised the new staff to be competent revenue employees while working together as a team to further raise the IGR.

“Be contented with your work, you will be well renumerated. You must bring character into this service,” he said.

Earlier, the Chairman of ODIRS, Mr Tolu Adegbie, had commended the governor for his drive in the growth of IGR in the state.

He said that the governor, in his passion, was always present in the monthly performance review on IGR.

Adegbie further said the first batch of 241 new employees in 2019 had greatly improved the IGR while the impact would be felt with an increase later year in the year.

In the meantime, the Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, on Monday in Lagos called on states to consider Internally Generated Revenue (IGR) as a critical instrument of funding.

Ahmed said this would help in blocking leakages and ensure effective and efficient collection of revenue.

The minister said this at the opening of a three-day retreat of the Federation Account Allocation Committee (FAAC) with the theme: “Efficient Federation Revenue Allocation as a Nexus for National Economic Diversification.”

She said that the introduction of State’s Fiscal Transparency, Accountability and Sustainability (SFTAS) in partnership with World Bank was to strengthen fiscal discipline and financial stability.

The News Agency of Nigeria (NAN) reports that FAAC retreat is held every two years as part of the governance framework with the main objective of exposing new members to the workings and dynamics of the Committee and refreshing the memories of existing members.

Represented by Dr Mahmud Dutse, Permanent Secretary, Ministry of Finance, Budget and National Planning, Ahmed said that there must be collective efforts in ensuring overall economic stability.

The minister assured that the Federal Government was ready to help in lifting millions of Nigerians out of abject poverty by partnering with states and all other relevant stakeholders.

She said this would bring about sustainable development and improve welfare of the citizenry.

Speaking on the over-reliance on income from the federation account by governments as not only risky but also unsustainable, the minister stressed the need for the tiers of government to look inwards toward generating more revenue from internal sources.

“We must give serious consideration to diverse sources of revenue at national and sub-national levels with a view to deploying appropriate measures to plug leakages and ensure efficiency and effectiveness in revenue collection.

“Though the conduct of economic policy is a shared responsibility of the three tiers of government in Nigeria, we must collectively sustain efforts to build a virile and stable economy.

“The states should imbibe the culture of peer learning among themselves as a way of ensuring continuous performance improvement,” she said.

Ahmed noted that the Finance Bill 2019 was a legislation to remove deficiencies in tax laws by amending obsolete and contentious laws, saying it sought to promote fiscal equity.
She added that the bill was to align domestic laws with global best practices and boast revenues and investments in both public and private sectors.

“The Finance Bill alongside the Strategic Revenue Growth Initiative (SRGI) and other initiatives being introduced by government will enable it to significantly diversify and improve revenue generation.

“It will help toward achieving the target of revenue of GDP of 15 per cent in medium term,” she said.

The minister assured that the federal government would continue to pursue its plans to encourage investment in industries and agriculture through the implementation of sustainable trade policies to enhance domestic production in order to curtail imports.

Gov. Babajide Sanwo-Olu of Lagos State, while declaring the retreat open, called for the creation and boosting of new sources of export in Nigeria’s bid to meet the increasing demand for public goods by Nigerians.

Represented by the Deputy Governor, Dr Obafemi Hamzat, he urged state governments to explore ways of reducing dependency on what comes from the federation account on monthly basis by adopting creative and strategies to boost IGR.

Sanwo-Ou called for a “new fair and just revenue sharing formulae for federation revenues.”

“Lagos deserve a special status funding; Lagos shoulders a heavy burden which, if not properly discharged, posses great danger to the attainment of our national economic growth aspirations.

“Lagos needs help in order to meet the challenges of half a million people migrating into the metropolis daily,” he said.

According to the governor, the new revenue formulae should take cognisance of population density in addition to nominal population while also increasing Lagos share of VAT.

He described Lagos getting 10 per cent of VAT while contributing 55 per cent as “inequitable.”

Earlier in his address of welcome, Chairman, Forum of Commissioners for Finance, Mr David Olofu, said the choice of theme was informed by the continued relevance of national economic diversification to the survival of our country.

He said there was a need for a synchronised, consistent and sustained effort at all levels to diversify the economy and provide opportunities for our people.

He noted that it could only be achieved when available resources were used to create and unlocking existing potentials.

“FAAC is held monthly basically to distribute accrued federation revenue to the three tiers of government and as representatives of our respective tier of government.

Also read:  Amotekun: Ondo monarchs urge Southwest governors to kick-start operation

“It is our responsibility to ensure that the distribution is done in line with established indices and that the remittances are carried out as distributed at the meeting in addition to other matters that affect the financial wellbeing of the federation,” he said.

 

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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Economy

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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