BIG STORY

Subsidy: FAAC Meets Today As NNPC Deductions Threaten States’ Allocations

Published

3 years ago

March 22, 2022

The planned deduction of N242.53bn fuel subsidy from the Federation Account this month by the Nigerian National Petroleum Company Limited is raising uncertainty among states as the Federation Accounts Allocation Committee is scheduled to meet on Tuesday (today).

It was gathered that commissioners for finance from the 36 states would meet today for the usual monthly allocation sharing meeting by the three tiers of government.

Already, the NNPC had made it known to the states that it would deduct a total of N242.53bn in March (this month) as the amount spent on the subsidy of Premium Motor Spirit, popularly called petrol.

Subsidy deductions by the NNPC had often reduced the amount being shared by FAAC, piling pressure on the finances of state governments as they battle to meet their obligations especially payment of salaries.

When contacted to tell the efforts which states were making to meet their obligations and pay salaries, the Chairman of the Forum of Finance Commissioners, David Olofu, declined comment but stated that this month’s FAAC meeting would hold on Tuesday.

“You are trying to squeeze water from the rock,” he told one of our correspondents.

When probed further on the date of this month’s FAAC meeting, Olofu, who is also Benue State Commissioner for Finance, replied, “Tomorrow (being today, Tuesday).”

States had kicked against the poor remittances by the NNPC to FAAC, which had been due to fuel subsidy deductions by the oil company.

Although it described the proposed N242.53bn subsidy deduction for this month as a value shortfall, the oil firm stated that the fund would be recovered from February 2022 proceeds due for sharing in the March 2022 FAAC meeting.

It said, “The December 2021 value shortfall recovery on the importation of PMS amounted to N210.38bn.

“The recovery consists of December 2021 value shortfall of N176.48bn plus the outstanding value shortfall recovery of N33.9bn accrued over the 2021 year. The November 2021 spot arrears of N98.81bn is also outstanding.

“The estimated value shortfall of N242.53bn (consisting of N143.72bn for January 2022 recovery plus November spot arrears of N98.81bn) is to be recovered from February 2022 proceed due for sharing at the March 2022 FAAC meeting.”

Recall that in February this year, the NNPC had remitted no money to FAAC due to its huge fuel subsidy spending and subsequent deduction from the Federation Account.

On March 3, 2022, state governors lambasted the NNPC for not remitting any funds at last month’s FAAC meeting.

The Chairman of the Nigeria Governors’ Forum and Governor of Ekiti State, Kayode Fayemi, had also wondered how the oil firm was bold enough to declare profit when it had not been meeting its FAAC obligations.

Fayemi had disclosed this alongside other governors during the Nigerian Governors’ Forum session on natural resources at the Nigeria International Energy Summit 2022 in Abuja.

He specifically pointed out that in the last Federation Accounts Allocation Committee meeting in February, the NNPC made zero remittance to the federation.

“We’ve just had the Federation Accounts Allocation Committee meeting a couple of days ago and the NNPC contributed zero to the Federation Accounts this month,” the governor had stated.

Several states were reported to have found it difficult to pay salaries in February following the zero remittance from the NNPC in that month.

Going by media reports, the Kano State Government which had approved the minimum wage of N30,000 was reported to have reverted to the old minimum wage of N18,000 for its workers.

The State Commissioner for Information, Muhammadu Garba, reportedly said, “Given the present financial situation, the government would find it difficult to implement the consolidated salary for March, which is though a temporary measure.”

Also in Kogi State, the state government which had also approved the new minimum wage for its workers was reported to have resulted in percentage payment.

In Benue, the State Chairman of the Nigeria Labour Congress, Godwin Anya, said the state had for some time resulted in a staggered payment of salaries to its workers.

Various oil industry operators told our correspondent that unless the fuel subsidy regime was halted, the deductions by the NNPC might continue, as the company had been the sole importer of petrol into Nigeria for more than four years running.

The oil firm had also been shouldering the cost of subsidy on petrol all these years. The actual cost of the commodity is far higher than the approved N162-N165/liter pump price.

The President, Petroleum Products Retail Outlets owners Association of Nigeria, Billy Gillis-Harry, explained that the actual cost of petrol without subsidy was usually a little higher than that of diesel.

He stated that if not for the subsidy, PMS would be selling around N550 to N600/liter going by the rise in crude price.

The approved subsidized pump price of PMS in Nigeria is between N162 to N165/liter, but oil marketers stated that the actual cost should be a little higher or about the same price of diesel had it been PMS was deregulated.

The PETROAN president further stated that the N3tn that was projected by the government as subsidy spending in 2022 might double before the end of the year if the crude oil price continues to rise.

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BIG STORY

Ikorodu Teacher Arrested For Physically Abusing 3-Yr-Old Boy In Viral Video [SEE VIDEO]

Published

7 hours ago

January 8, 2025

PorscheClassy News

The Lagos State Domestic and Sexual Violence Agency has confirmed the arrest of a teacher following a viral video showing the suspect allegedly physically abusing a three-year-old boy at a school in Ikorodu.

The announcement was made in a statement shared on X (formerly Twitter) on Wednesday.

The video, shared by Oyindamola, who identifies as #dammiedammie35, captured a female teacher slapping the child’s face.

The video was captioned, “Footage from Christ-Mitots School in Ikorodu, a teacher named Stella Nwadigo was witnessed mistreating and physically abusing a three-year-old boy, Abayomi Micheal.”

The footage has raised serious concerns about the safety and well-being of our little ones in school.”

Reacting to the incident, the Lagos DSVA issued a statement expressing gratitude to those who brought the video to their attention

The statement reads, “We appreciate everyone who brought the disturbing incident of a teacher who was recorded physically abusing a 3-year-old boy to our attention.

We are pleased to inform the public that the teacher in question has been arrested by Owutu FSU, and an investigation has commenced in earnest.

The agency reiterated the state government’s commitment to protecting children, emphasizing that schools must be safe and nurturing spaces.

The statement added, “Indeed, institutions of learning should be safe, warm, and protective environments for all children in their care.

The State Government remains committed to ensuring the safety and well-being of every child by enforcing strict regulations, holding offenders accountable, and working with stakeholders to promote a zero-tolerance policy for abuse in any form.”

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BIG STORY

China Development Bank Approves $254m Loan For Kano-Kaduna Railway Project

Published

12 hours ago

January 8, 2025

PorscheClassy News

The China Development Bank (CDB) has provided a loan of $254.76 million for the construction of the Kano-Kaduna railway project in Nigeria.

In a statement on Tuesday, the bank stated that the funding aims to support the smooth advancement of the infrastructure project.

The CDB highlighted that the construction is being undertaken by China Civil Engineering Construction Corporation (CCECC), with financial support from the bank.

“The Kano-Kaduna railway, with a total length of 203 kilometers, is a standard-gauge railway,” the statement reads.

“Once completed, it will provide direct rail connectivity between Kano, an important northern city in Nigeria, and the country’s capital Abuja, offering local residents a safe, efficient, and convenient mode of transportation.”

In addition to enhancing mobility, the bank mentioned that the project is expected to stimulate economic growth along the railway corridor, generating job opportunities and promoting related industries.

“The Kano-Kaduna railway project has been included in the list of practical cooperation projects for the Third Belt and Road Forum for International Cooperation,” the CDB added.

The bank stated that the construction is progressing smoothly and reiterated its commitment to collaborating closely with the Nigerian government to ensure the disbursement of funds and effective management of the next phases of the project.

On July 15, 2021, President Muhammadu Buhari launched the construction of the Kano-Kaduna railway project.

The rail project is the third phase of the Lagos-Kano standard gauge railway modernization project.

The first phase (Abuja-Kaduna) and the second phase (Lagos-Ibadan) were inaugurated for commercial operations in July 2016 and June 2021, respectively.

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BIG STORY

ICPC Files Money Laundering Charge Against El-Rufai’s Former Commissioner

Published

13 hours ago

January 8, 2025

PorscheClassy News

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has charged Muhammad Sa’idu, a former commissioner during the administration of Nasir el-Rufai, ex-governor of Kaduna, to court over alleged “money laundering.”

The Kaduna police command arrested Sa’idu over a petition for alleged diversion of public funds.

Osuobeni Akponimisingha, the ICPC’s assistant legal officer, filed the case against the former commissioner on Tuesday at the federal high court in Kaduna.

Sa’idu served as the commissioner of local government affairs, chief of staff, and commissioner of finance during the administration of el-Rufai.

The ICPC dismissed an earlier claim that Sa’idu had been exonerated of all charges after 10 months of investigation.

The former commissioner is charged alongside Ibrahim Muktar, a staff in the ministry of finance.

According to the suit No. FHC/KD/IC/2025, the defendants are charged on a two-count charge of “money laundering.”

“Sometime in March 2022 or thereabouts, Alhaji Muhammad Bashir Sa’idu, who at that time commissioner of finance, did accept cash payment of the sum of N155m from one Ibrahim Muktar exceeding the amount authorised by law, which sum you received in cash through proxy to wit: Muazu Abdu, your Special Assistant and you thereby committed an offence contrary to Section2(a) and punishable under the Section 19(d) of the “Money Laundering(Prevention and Prohibition) Act, 2022,” the charge sheet reads.

The ICPC also alleged that within the same period, Sa’idu “indirectly took control of the sum of N155m received in cash for and on behalf of you by one Muazu Abdul from Ibrahim Muktar, which he reasonably ought to have known, formed part of the proceeds of an unlawful activity to wit: corruption and you hereby committed an offence contrary to section 18(2)(d) and punishable under Section 18(3) of the “Money Laundering(Prevention and Prohibition) Act, 2022.”

The anti-graft agency noted that section 18(3) of the “Money Laundering (Prevention and Prohibition) Act, 2022” states that “any person who contravenes the provisions of subsection(2) is liable on conviction to imprisonment for a term of not less than four years but not more than fourteen years or a fine not less than five times the value of the proceeds of the crime or both.”

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