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States Groan Over Delayed Revenue Sharing, FAAC Meets Today

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The Federation Account and Allocation Committee meeting initially scheduled for last week will now hold on Tuesday and Wednesday.

The Chairman of the Finance Commissioners Forum, David Olofu, and the Delta State Commissioner for Finance, Mr. Fidelis Tilije, disclosed this.

But Olofu, who is also the Benue State Commissioner for Finance, added that the delay in holding the FAAC meeting had affected the activities of many states including payment of salaries and capital expenditures.

FAAC, which is headed by the Minister of Finance, Budget and National Planning, and whose members include state Commissioners of Finance,  states’ Accountants – General, Accountant – General of the Federation, and the Permanent Secretary of the Federal Ministry of Finance meets every month to share revenues among the federal, state and local governments.

The FAAC meeting was scheduled to hold on Wednesday and Thursday last week, but the Federal Ministry of Finance, in a statement on Wednesday by its Director of Home Finance, Stephen Okon, said it had been postponed indefinitely.

The postponement of the meeting, which the ministry said was due to certain circumstances came a few days after the Economic and Financial Crimes Commission arrested the Accountant General of the Federation, Ahmed Idris,  over an alleged N80 billion fraud.

On Wednesday, the Minister of Finance, Budget, and National Planning, Zainab Ahmed,  announced an indefinite suspension of Idris without pay.

When contacted on Monday, Olofu, who declined to comment on Idris arrest, said that the delay in the sharing of this month’s allocations had affected most of the states of the federation from meeting their obligations.

He stated, “We are holding FAAC meetings on Tuesday and Wednesday, adding, ‘the delay has affected government activities.

“We have cash group plans at states, those cash group plans have not been met, so that has put in the cooler all plans of cash group and they have yet to be met including payment of salaries and capital expenditure because over 28 states in the country rely on federal allocation except Lagos and Rivers. In fact, no other states again, all other states depend on allocation,” Olofu said.

On his part, the Ekiti State Commissioner for Finance, Akin Oyebode, said the delay in the FAAC meeting brought to the fore the need to ensure fiscal federalism.

The commissioner, who said that Nigeria was producing less crude than the OPEC quota and spending heavily on pipeline security and infrastructure, said, “Despite the huge spending on security, we are still unable to secure our pipelines, we can see heavy theft of crude oil, that should concern anyone.

“Despite significant investment in agriculture, agriculture is still growing at 3 percent per annum. We should be asking questions about how do we invest in storage and irrigation which are the big drivers of productivity in agriculture, which is the mainstay of our economy. These are conversations we should be having.   

“We should be having conversations about how do we decentralize our grid infrastructures, how do we put in the grids that we need to deepen and increase electricity generation. We need a conversation around even fiscal federation – is the current revenue sharing formula the right one?

“Oil production has dropped to about 1.4 million barrels per day and we are spending hugely on subsidies. Not only are we earning less from crude, but we are also actually spending more to import refined products. At the end of the day, we are going to end up with the position that subsidy is simply not sustainable and something has to be done.

“, I think, in the spirit of fiscal federalism, the states should be given the choice whether or not they want the subsidy for the refined products being sold in their state.

The Delta State Government has said even though Federation Account Allocation A Committee (FAAC) does not hold its meeting, it will not affect Delta state’s finance.

The State Commissioner for Finance Mr. Fidelis Tilije stated this on Monday in an interview in Asaba, said that there will be FAAC meeting on Wednesday.

Economists urge states to be self-reliant in revenue generation

Commenting on the delayed FAAC meeting, A political economist and former presidential candidate, Prof Pat Utomi, urged States to create an environment for wealth creation rather than depend solely on the federal allocation.

He said, “States must focus more on creating the environment for wealth creation. If you go back to the late 50s and early 60s, most of the developments that took place in Nigeria are from the subnational governments. They collected the revenues, and send 50 percent of it to the center but the military ruined all of that.

“So, Nigeria became more focused on sharing revenues than on the fundamental way of governing, which is the production and taxing earned revenue. Whenever there is no revenue to share, the States are incomplete trouble and they become bureaucracies that are unable to manage themselves because they are dependent.

“This is not the way they should function. I have in fact argued that local governments should be restructured as economic development areas rather than political drain pipes where a local government in Ogun will be struggling with the one in Oyo to offer better incentives for businesses to relocate so that they can benefit from the tax.”

A Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Prof Sheriffdeen Tella, said that one of the reasons for the delay is likely the recent arrest and suspension of the Accountant-General.

He added that States should stop depending on the federal government and find a way to boost revenue.

Tella said, “I think the delay is caused by the action of the Accountant-General who stole money. He happens to be a major stakeholder in the meeting they are supposed to hold to decide on the allocation. It also exposes the States’ dependence on the Federal Government. That is not good enough because there is no state that cannot take care of itself if they are really working if the governors are thinking out of the box.”

He further said that this delay may lead to States being unable to pay salaries, adding that the States may also owe creditors and contractors, which may affect productivity levels.

“The major delay will be on salary payment. It would also be on paying their creditors and contractors. When this happens, it will likely affect productivity and reduce output,” Tella said.

NEC meeting fails to hold two consecutive months

He stated this as the National Economic Council chaired by the Vice President, Professor Yemi Osinbajo, SAN, failed to meet for two consecutive months as most members, including those contesting the 2023 elections intensified their electioneering.

Impeccable sources close to council members who spoke to one of our correspondents anonymously affirmed that there has not been any sitting in April and May. More so, there were no prior announcements of suspension of NEC meetings.

According to the source, “Yes, there have been no meetings for two months now. Also, there was no official communication to members that the meeting won’t be held in the coming months.

“I believe everyone understands that this is an election season and they all moved on with their political activities.”

BIG STORY

UPDATE: We’re Ready To Provide Evidence For Trial Of Simon Ekpa — Enugu Government

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The Enugu State Government has expressed its readiness and willingness to provide evidence to assist in the prosecution of Simon Ekpa, who was arrested in Finland on Thursday over allegations of sponsoring terrorism in Nigeria.

Enugu State Government made this offer in a statement released by the Secretary to the State Government, Prof. Chidiebere Onyia, on Friday.

In the statement, the Enugu State Government also commended the Government of the Republic of Finland for the arrest of Ekpa, whom it described as “the Finland-based leader of the criminal gang, Autopilots.”

The Enugu State Government further referred to Simon Ekpa as “a common criminal, con man, and terrorist, who has no interest of Igbo people at heart.”

It added that Ekpa “is a murderer and fraudster, who delights in killing his people and living large off their misery.”

“Enugu State was ready and willing to provide evidence of Ekpa-sponsored atrocities against Ndigbo to aid his trial and conviction, whether in Finland or Nigeria.”

“The Enugu State Government welcomes the arrest of the Finland-based terrorist, Simon Ekpa.”

“His arrest and trial will no doubt go a long way in strengthening peace, security, and stability in all parts of the South East.”

“This arrest is in line with the demand of Governor Peter Mbah Administration, which has repeatedly made it known that Ekpa is a megalomaniac, common criminal, murderer, and fraudster, who takes joy in feeding fat on the manipulated emotions of Ndigbo and inflicting misery on the South East region.”

“Ekpa has for long, and unfortunately from Finland, made a living by creating a siege climate and mentality in the South East, destroying lives, property, and the Igbo trademark of entrepreneurship and hard work.”

“He thrives on manipulating, exploiting, and extorting the people on the pretext of fighting for their interest and for the restoration of Biafra,” the government said.

Ekpa was arrested and detained alongside four other suspects by the government of Finland on charges of sponsoring terrorism in Nigeria, according to local newspapers in the European country.

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BIG STORY

Much Ado About Meddlesome Minions, And Messengers Of Misinformation — By Tayo Williams

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There is a growing phalanx of pseudo-intellectuals parading the social media space with faux and fictitious knowledge of the indigenous oil and gas industry, and it is scary because of the grave danger they portend and present for the average Nigerian.

From X (formerly known as Twitter) to Facebook and even the photos and videos-sharing site, Instagram, they abound, in their inglorious number, lending their platforms to deliberately distort facts and spread misinformation especially to favour the narratives propounded by popular Nigerian businessman Aliko Dangote, owner of the Dangote Petroleum Refinery.

Since the refinery began operations earlier in the year, it has been one week, one controversy allegedly orchestrated by Dangote in a brazen attempt to arm-twist the Nigerian National Petroleum Corporation Limited, NNPCL, into playing by his rules.

Those conversant with the modus operandi of Dangote and his refinery say the long-drawn warfare with every institution and individual in the oil and gas value chain is nothing but a self-seeking and mindless profit maximisation tactic.

Whilst nobody begrudges Dangote’s drive for profit as a businessman, perhaps he needs to be reminded that the NNPC has a mandate to ensure and provide energy security in a way that is affordable and sustainable for the generality of Nigerians. And, the NNPCL management has declared in very unambiguous terms that it would not pander to the din of the market whether orchestrated by Dangote, his rampaging minions or anyone else.

The truth, however, is that there is an increasing army of vacuous, vicious, and vile individuals strutting the social media space defending and propagating outright and outlandish falsehoods. Of particular concern is one Kelvin Emmanuel who has become the unofficial mouthpiece of the Dangote Refinery. Going from one media house to the other, he pulls figures out of the air and projects obnoxious untruths on hapless Nigerians. With the backing of his paymaster’s billions, it is no surprise that this otherwise irrelevant and fatuous character now commands appearances on major television stations.

But it is on X that he has made lying glibly and gratuitously the Holy Grail. He once premised Dangote’s inability to secure feedstock for his refinery on the government and the NNPCL. While peddling this untruth, he conveniently forgets that the refinery had a seven-year window, during its construction phase, to lock in feedstock supplies that could last a minimum of five years. Dangote did none of that. As it would later unfold, his game plan, which Emmanuel glossed over, was to monopolise equity oil and production quotas to serve his business interests.

Another deliberate misinformation from the Dangote camp was the allegation that International Oil Companies (IOCs) and other industry players were trying to sabotage his interests. Apart from being an investor in the Dangote Refinery, the NNPC still supplies gas to various Dangote companies across Nigeria. How can anyone or any institution jeopardise their investment? What further proof of faith does Dangote and his minions need to know that the NNPC is their cheerleader, and is here to make operating in the industry seamless and a win-win for all?

Echoing Dangote’s baseless stance, Emmanuel also called for the sack of Mr. Farouk Ahmed, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), regulators of Nigeria’s midstream and downstream value chain. By Emmanuel’s warped reckoning, Ahmed had no locus to speak against Dangote or his enterprise because the latter questioned the quality of the product from Dangote Refinery and other local refineries in comparison with imported ones. Of course, Emmanuel’s was a lone voice in the wilderness because those who understand the invaluable role that the NMDPRA plays in the industry did not as much as dignify his tirade with a glance.

In a robust response to Emmanuel’s groundswell of egregious lies, Ibrahim Y. Kabo, a petroleum engineer based in Abuja, described him as “Someone who has not seen the inside of a refinery before Dangote built one, let alone understood the mechanism of the energy industry, …(yet) assuming the role of an authority in oil and gas matters.”

He went further to lampoon Emmanuel for stating that only Dangote Refinery’s products meet specifications while others are all sub-standard. “The obvious question is: whose specifications? For a refinery that has barely made four of seven pre-inauguration certifications, it sounds somehow laughable to suddenly assume the role of regulator in an industry you’ve barely entered,” Kabo said.

In the article, entitled, “The Hand of Aliko, the Voice of Kelvin: Inside Dangote Refinery’s Media Stunt Lab”, Kabo declared that from all Emmanuel’s interviews and pretensions to be an industry expert, one thing is obvious: “He lacks an understanding of both the mandate and the reach of NNPC as a national oil company.”

Kabo adds that, “Downstream is the least of NNPC’s business interests. The mandate, as per PIA (Petroleum Industry Act), is to facilitate both the extraction and commercialization of Nigeria’s oil and gas resources. 20 billion dollars may be a lot, but NNPC and industry regulators routinely handle projects of that magnitude. At best, Dangote and (Emmanuel’s) ranting are an irritation. I believe that’s why NNPC openly declared it was not interested in being Dangote’s off-taker.”

Like the Yoruba saying goes, derision does not stop the sweetness of the honey. The meddlesome minions and messengers of misinformation can continue dancing naked in the marketplace, but what is most important is that the NNPCL has assured that it will not cease doing everything in its capacity “to harness the possibilities of oil and gas, address energy demand and drive the national economy, and become the number one oil producer and supplier in Africa.”

 

Tayo Williams is a Lagos-based media executive

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BIG STORY

We’ll Reintroduce Bill Seeking 6-Year Single Term For President, Governors Despite Rejection — Rep

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Ikeagwuonu Ugochinyere, a member of the House of Representatives, says the push for a six-year single term for president and governors will continue despite the bill’s rejection.

The bill, which was slated for a second reading during Thursday’s plenary session, was rejected by lawmakers in the Green Chamber.

Sponsored by Ikeagwuonu from Imo State and 33 other lawmakers, the bill also sought to amend Section 3 of the Constitution to recognize the division of Nigeria into six geopolitical zones.

Briefing journalists on Thursday evening, the lawmaker described the rejection of the bill as a “temporary setback.”

“The struggle to reform our constitutional democracy to be all-inclusive and provide an avenue for justice, equity, and fairness has not been lost,” he said.

The lawmaker added that voting against the bill by the parliament “does not put an end to agitation and hope that we will realise this objective.”

“This is a temporary setback which does not affect the campaign for an inclusive democratic process,” he said.

The Imo lawmaker stated that the sponsors of the bill will review the decision of the House and “find possible ways of reintroducing it after following due legislative procedures.”

“All I can tell Nigerians is that we will continue the advocacy and convince our colleagues to see reason with us. If elections are held in one day, it will reduce cost and rigging,” he said.

“If power rotates, it will help deescalate political tensions, and a six-year single term will go a long way in helping elective leaders focus on delivering their democratic mandate.”

“All hope is not lost, we will continue the advocacy, and we hope that when reintroduced, our colleagues will support it.”

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