Fed Govt vows to audit N22.7tr Ways and Means.

Fed Govt vows to audit N22.7tr Ways and Means.

The federal government has resolved to audit the N22.7 trillion Ways and Means debt hanging on its neck. Minister of Finance and Coordinating Minister for the Economy, Wale Edun made this disclosure at the ongoing Public Wealth Management Conference organized by the Ministry of Finance Incorporated (MoFI)

Edun: “There was an inherited amount, N22.7 trillion backlogs, we are auditing it, it’s like when I am ready to pay a loan at the bank I audit it I ask for an audit before agreeing on the sum to pay. But apart from that how do you close your ways and means gap, you get your revenue up, you get your expenditure down as much as possible” the finance minister said.

He noted that the Central Bank of Nigeria (CBN) has advocated for reducing and eventually eliminating the “ways and means” approach, which involves borrowing from the CBN to finance government expenses. To close the gap created by this practice, efforts are being made to increase revenue and reduce expenditure.

The administration of President Bola Ahmed Tinubu inherited the N22.7 trillion Ways and Means debt from past administrations. From 1999 to May 29, 2023, past governments had accessed the Ways and Means (overdraft from the CBN) to run the government. A substantial portion of the amount is alleged to be spent on paying civil servants’ salaries over the years.

Regarding revenue sources, Edun highlighted the importance of oil revenue and urged the Nigerian National Petroleum Corporation (NNPC) to increase oil production while cutting costs. Additionally, efforts are being made to improve revenue collection from government-owned enterprises and enhance the efficiency of tax collection through digitization and technology.

“We have used technology, digitization such that we have laid the foundation for a total revamp of federal government revenues and we expect the revenues to go up from what is due to government at the hands of other companies and enterprises will automatically now be deducted using digitization”.

Furthermore, the finance minister said there are plans to reform fiscal policies and tax systems to streamline processes, reduce taxes, and eliminate unnecessary levies and fees. This includes the introduction of an emergency intervention bill to rationalize taxes and improve revenue collection from both corporate sectors and individuals.

According to the minister, “the fiscal policy and tax reform committee is going to revolutionize and it’s going to announce very quickly through an emergency intervention bill, it’s going to rationalize taxes, take more nuisance value away from public sector, it’s going to reduce the tax value you have on a handful of items, all the levies and fees particularly the ones that are directly controlled by the federal will all be removed. On the revenue side, everything is being done to ensure that there are no leakages of revenue.”

On the expenditure side, measures are being implemented to reduce inefficiencies, eliminate duplications, and prevent leakages in government spending. This includes addressing issues such as duty waivers, tax incentives, and contract expenditures to ensure that government funds are utilized effectively.

Wale Edun said: “On the expenses side we are also implementing a robust expenditure framework that removes the leakages, removes the double counting, payment to people who are not supposed to be, whether it is from duty waiver or tax incentives or even expenditure of government on contract supplies etc so that both from the revenue on the debt side, there’s a change that is being implemented and results are already coming through and that is the way that the government will now get itself weaned off the ways and means which have long since played.”

Fed govt set to release 60,000MTs of food grains to stabilise prices.

Fed govt set to release 60,000MTs of food grains to stabilise prices.

The federal government has finalised plans to release an additional 60,000 metric tonnes of food grains to make food available and stabilize the price of foodstuff in the country.

Minister of Finance and Coordinating Minister for the Economy, Wale Edun made this known in Abuja on Tuesday, February 20, at the Public Wealth Management Conference organised by the Ministry of Finance and the Ministry of Finance Incorporated (MoFI).

Edun, in his address, said that President Tinubu is committed to supporting the less fortunate during these challenging times.

He stated that President Tinubu had “previously released strategic grain reserves and is currently releasing 42,000 metric tonnes of food grains, with plans for an additional 60,000 tonnes”.

These measures, the minister said, are aimed at ensuring food availability and stabilizing prices, with the expectation that prices will eventually decrease. The priority is to ensure that food reaches the market and people’s tables, no matter the effort required.

According to Edun, “President Tinubu has always said he will not leave the poor, the vulnerable the weaker in society at times like this. He has previously released strategic grain reserves, he’s currently releasing 42,000 metric tonnes of food grains and he has a plan of releasing another 60,000 tonnes of food grains.

“This is in addition to measures to make sure that whatever is in the stores comes out at this important time and we expect food prices to stabilize and begin to fall in a reasonable period and in the meantime, everything that can be done to put food in the market, on the tables of people will be done no matter what it takes.”

The finance minister talked about the implementation of an executive order allowing the Ministry of Finance, through the Debt Management Office (DMO), to offer government-backed securities.

This initiative aims to restore confidence in the Naira and provide Nigerians, both within and outside the country, the option to save in dollars. By offering dollar-denominated securities, individuals can preserve their savings in dollars while demonstrating their commitment to Nigeria.

He also talked about the collaborative efforts between fiscal and monetary authorities to address economic challenges in Nigeria. He highlighted how the Ministry of Finance’s response, including debt management strategies, led to an increase in Treasury bill interest rates, resulting in improved dollar supply to the economy.

This cooperation between fiscal and monetary policies he said demonstrates a concerted effort to stabilize the economy, reduce inflation and interest rates, and attract both portfolio and foreign direct investments.

The chairman of the MOFI Board, Dr. Shamsudeen Usman, stated that MOFI will take a more active role in managing its assets from now on. He encouraged asset operators to view MOFI as partners, not competitors or regulators.

Usman also assured of MOFI’s commitment to high standards of corporate governance, including a policy to prevent conflicts of interest among staff.

The CEO of MOFI, Dr. Armstrong Takang, outlined MOFI’s renewed mandate, focusing on expectations from both the public and private sectors. He announced the launch of a N100 billion Project Preparation Fund aimed at improving the professionalism in managing public assets.

The goal, he said is to generate commercial value for the benefit of the people and enhance investor confidence in the assets’ operations and management.

Food security: Reps urge FG to urgently subsidise agriculture.

Food security: Reps urge FG to urgently subsidise agriculture.

The House of Representatives has urged the federal government to, as a matter of priority, consider subsidizing agriculture to revitalize the economy and improve food security in Nigeria.

The House mandated the Committees the Committee on Agricultural Production and Services, Privatization and Commercialization, and Public Assets, to investigate the privatization/concession of 22 out of 33 Government Silos for grain storage and other critical national assets in Nigeria.

The Committees are to report back within four weeks for further legislative action.

These resolutions followed the adoption of a motion titled “Need to Investigate the Privatization / Concession of Federal Government Silos in Nigeria” moved by Hon. Inuwa Garba.

The House noted that in September 2017, the federal government commenced the process of concessioning 22 out of its 33 silo complexes across the country to the private sector to ensure the availability of affordable grains across the country.

The House said it was cognizant of the need to scrutinize circumstances surrounding the privatization or concession of Government Silos for Grains Storage in the country considering the vital role these silos play in ensuring food security across the country.

The House said it was also cognizant of the need to investigate the entire process of privatization or concession, including the criteria used for the selection of private entities, transparency in the bidding process to ensure accountability in public administration, and upholding the principles of fairness and equity.

Reps seek probe of abandoned $38.7b power plant project in Delta.

Reps seek probe of abandoned $38.7b power plant project in Delta.

The House of Representatives has called for the investigation of the abandoned second phase of the $38.7 billion Nigerian National Petroleum Company Limited/Nigerian Agip Oil Company (NAOC) Joint Venture Okpai Independence Power Plant Project in Ndokwa East Local Government Area of Delta State.

The House mandated the Committee on Power to conduct a comprehensive investigation into the funding and contractors, which includes the Nigerian Agip Oil Company and Saipem Contracting Nigeria Limited, ascertain the impediments leading to the abandonment of the project, and report back within four weeks for further legislative action.

These resolutions followed the adoption of a motion sponsored by Hon. Nnamdi Ezechi during plenary on Tuesday, February 20.

The House noted that the Okpai Independent Power Plant project, a joint venture between the Nigerian Agip Oil Company (NAOC) and the Federal Government, received approval from the National Electricity Regulatory Commission (NERC) for the construction of phase two.

The House also noted that despite the substantial investment of $38.7 billion and the commencement of the second phase of the construction in November 2017, the project ended up being abandoned, resulting in the dilapidation of the critical Federal infrastructure.

The House said it was aware that the second phase of the project had reached approximately 90 percent completion before its abandonment by contractors Saipem Contracting Nigeria Limited (SCNL) and Nigerian Agip Oil Company (NAOC).

The House further noted that the project site is in a grave state of decay, with billions of Dollars’ worth of equipment and turbines unused, covered by grass, and taken over by shrubs.

The House was concerned that the abandonment of the Phase II project jeopardized significant investments and hampered an increase in electricity generation for the nation.

It was also concerned that there is ambiguity surrounding the project’s contract amount, casting doubt on accountability and transparency in its execution.

The House recognised the fact that the Nigeria Agip Oil Company (NAOC) and Saipem Contracting Nigeria Limited (SCNL) were involved in the award and execution of the project.

It was disturbed by the lack of advancement of the project and the need for government action to preserve this essential national resource.

Palliatives: Kwara distributes rice to residents.

Palliatives: Kwara distributes rice to residents.

Kwara State Government has begun fresh distribution of food palliatives to residents across the rural and urban parts of the state.

A government house statement made available to the press on Tuesday by Rafiu Ajakaye said that the government began the distribution of rice through religious leaders, nongovernmental bodies, and community-based groups, among others.

The statement noted that the food palliative is another layer of government support to cushion the effects of fuel subsidy removal and the high cost of living.

Speaking on the sidelines of the distribution on Monday at the Banquet Hall, Opposite Government House Ilorin, the Senior Special Assistant to the Governor on Community Development, Dr Lawal Olohungbebe said the government is reaching out to the downtrodden through CBOs and religious leaders because of their closeness to the people.

“We believe these CBOs and clerics are closer to the people. They know where the shoes pinch in the communities. They know those who are actually in dire need. For the NGOs, they have been working with the needy all these while, and we want to make use of the existing structure to reach out to the downtrodden at this crucial time,” Olohungbebe said.

“For the CBOs and CSOs alone (apart from what is being shared through religious bodies), we have 20,000 bags of 10kg rice for the urban poor, especially in the state capital in this phase. So, more bags will be going to the densely populated local government areas through the CBOs. We have also picked some CSOs and NGOs that we know that are working with the poor. Every NGO has its thematic area, and we picked those working with the poor.

“We have considered the population of the community-based organisations that we have. Most of them are registered with the government. So, they are recognised and certified. We have picked some of them from this first phase of palliative distribution.”

Olohungbebe added that the state government has various channels of distributing palliatives to the masses aside distribution of 20,000 bags of 10kg rice through CBOs and NGOs in selected areas.

Recall that the State government had last year distributed 250,000 bags of 10kg rice across the state as palliatives to cushion the effects of fuel subsidy removal.

The current distribution is in the state capital, while the next phase will move to other parts of the state, among other initiatives of the government.

Representatives of community-based organisations, who spoke with newsmen while receiving the rice applauded AbdulRazaq for his concern for the plight of the people, and said the palliative would bring relief to the people and reduce pressure on the state government.

AbdulRazaq Jimba of Magaji Ngeri Joint Youths Association in Ilorin West Local Government Area said: “We are here to receive 100 bags of palliative from the Kwara State Government on behalf of our community. Like the previous one, we believe this will bring relief to our people in the community.”

Babatunde Mashood of the Edun Development Association in Ilorin South also said: “We were called to receive 100 bags of 10kg rice on behalf of our community. This will go a long way in reducing hardship in our area, especially among the poor. The state government is doing its own to reduce the hardship in our community and the state as a whole.”

Let the poor breathe, Kogi gov warns against hoarding palliatives.

Let the poor breathe, Kogi gov warns against hoarding palliatives.

Kogi State Governor, Usman Ododo, has warned political appointees against hoarding palliatives provided by the state government to cushion the effects of the rising cost of food items.

Ododo sounded the warning on Tuesday while unveiling the distribution of the relief materials at the Muhammadu Buhari Civic Centre in Lokoja.

“These food items are for the downtrodden irrespective of political, religious or ethnic affiliation in fulfilment of our campaign promises to bring succour to the poorest of the poor members of the society,” he said.

The governor said his administration remains committed to serving the people in transparency and fear of God adding that he will not condone any act of inflicting further hardship on the people through hoarding of the palliatives.

“My administration will not allow any unpatriotic element to cheat on the people. The government has put mechanisms in place to track and apprehend those who plan to hoard the distribution of these food items.

“The palliative is not for the APC alone, religious group or ethnic agenda. It is for the people of Kogi State. I want to beg all of us to allow the poor breath. I am part of them. I was being raised by them. I am committed to serving them, not as a leader but as their servant. Political appointees will not benefit from these palliatives. They should also contribute to the society that made them

“I will not condone any act of indiscipline as I will personally monitor the distribution of the rice to ensure that the palliative reaches the downtrodden that gave the mandate to serve them,” the governor stated.

Ododo, who emphasised the need for the people of the grassroots to benefit from the rice palliative, however, vowed to sanction any political appointees that may wish to divert the bags of rice.

“This palliative is to alleviate the current hardship people are passing through and it should reach the people at the grassroots. This intervention is meant for the people and modalities for distributions are water-tight and we have put a mechanism to apprehend and sanction those who may wish to divert the palliative,” he added.

Jigawa eyes $50m agriculture investment from IDB, others.

Jigawa eyes $50m agriculture investment from IDB, others.

Governor Umar Namadi of Jigawa State has begun discussion with officials of Islamic Development Bank and the Arab Bank for Economic Development in Africa to attract agriculture investments exceeding $50m in the state.

The governor’s Senior Special Assistant on Media Affairs, Zainab Ringim, said in a statement on Tuesday that the governor is also having discussions with Saudi Arabia based investors.

Ringim revealed that the governor who led a high-powered delegation to the Kingdom of Saudi Arabia, is seeking to establish robust social and business partnerships with prominent financial institutions to enhance agricultural productivity to drive economic growth in the state.

The statement said, “Education remains a focal point of the mission, with discussions underway with the World Assembly of Muslim Youths to finalise plans for various educational projects.

“These projects include the establishment of an Islamic iniversity and 11 Islamic centres across Jigawa State to expand access to quality education.

She disclosed that Namadi”s delegation is also exploring collaboration opportunities to conduct health and medical outreach programmes on corrective eye surgery initiatives in the state.

Ringim explained that this collaborative effort is geared to address crucial healthcare needs to enhance citizens’ well-being.

Last week, the Jigawa State government said it would introduce a policy to guide youth development in the state.

The Commissioner for Information, Youths, Sports and Culture, Mr. Sagir Musa, made this known in an interview with the News Agency of Nigeria in Dutse, the state capital.

He said that the policy would serve as a framework that would guide the operations of the ministry while leveraging the efforts of the state Governor, Umar Namadi’s administration for youth development.