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13% Oil Derivatives: We’ve disbursed N1.98trn to N’Delta states – FG

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2 years ago

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Zainab Ahmed, Minister of Finance, Budget and National budget says the Federal Government has thus far disbursed N1.98trn as a share of the 13 per cent oil derivation backlog paid to oil-producing states.

The Minister made the disclosure at the sixth edition of the President Muhammadu Buhari administration scorecard (2015-2023) in Abuja on Thursday.

The 13 per cent derivation fund recently resurfaced after Governor Nyesom Wike of Rivers State alleged that the oil-producing states have refused to disclose their share of the derivation arrears paid by the Federal Government from 1999 to all the Niger Delta states.

However, according to Ahmed, the amount was paid in seven years, despite some of the funds preceding the current administration.

She said, “One of the key functions of the Ministry of Finance Budget and National Planning is to support the states. We wouldn’t have been able to grow consistently without enabling the states to grow because it is a federation.

“Mr. President has been very uniquely generous in his support to states. I can say no president has provided the level of support provided to the states of the Federation. He understands that the federating units need to work together as one to achieve the targets that he has set for the country. So everybody goes to support sub-national governments. In seven years, we have disbursed N1.98trn in funds to oil-producing states.”

On the financial health of the country, Ahmed insisted that Nigeria was not broke.

Her comment comes amid criticism of the Buhari administration for copious borrowings believed to have sapped the country’s coffers dry.

Data obtained from CBN’s website showed that the federal government’s debt through Ways and Means climbed from N17.5trn in December 2021 to N23.8trn in October 2022 —an increase of N6.3trn in 10 months.

These borrowings are currently not included in the country’s total public debt stock (federal and state governments) which currently stands at N42.84trn.

In July, the cost of servicing debt surpassed the federal government’s retained revenue by N310bn in the first four months of 2022.

Ahmed disclosed this while presenting the 2022 fiscal performance report for the period, saying that the Federal Government’s total revenue was N1.63trn, while debt service gulped N1.94trn.

She advised that urgent action was required to address “revenue underperformance and expenditure efficiency at national and sub-national levels”.

Similarly, the President of the African Development Bank (AfDB), Akinwumi Adesina, in his analysis of Nigeria’s debt profile, said the external debt levels stand at N16.61trn or $40bn.

He concluded that “Nigeria needs help to tackle this debt burden”.

But during her presentation of Buhari’s scorecard on Thursday, Ahmed said Nigeria has not in any way defaulted in its both domestic and foreign debt repayments, adding that the country is not opting for debt relief.

The minister noted that the country continues to disburse funds to the three tiers of government from the Federation Accounts Allocation Committee (FAAC).

She said the Federal Government has since 2015 disbursed N5.04trn to state governments, disclosing that the non-oil sector drives the country’s economy more than the oil sector owing to vandalism of infrastructure.

Ahmed further said oil production is increasing, stressing that as of October 2022, it soared to 1.4 million barrels per day.

She also said N1.7trn was released for this year’s capital projects as of September 2022

 

 

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Former Governor Ifeanyi Okowa, Spends Second Night In EFCC’s Cell Over N1.3 Trillion Alleged Fraud

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3 hours ago

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November 7, 2024

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Immediate past governor of Delta State, Ifeanyi Okowa, who was arrested and detained by the Economic and Financial Crimes Commission (EFCC) has spent second night in the custody of the anti-graft commission.

 

Okowa is currently being investigated and detained over the alleged diversion of N1.3 trillion.

 

The N1.3 trillion reportedly represents the 13% derivation fund from the federation account between 2015 and 2023.

 

According to sources within the commission, Okowa was invited to the EFCC office in Port Harcourt, Rivers State, where he’s subsequently detained by officials.

 

One of the sources stated, “Okowa was at our Port Harcourt office following an invitation from investigators probing the allegations against him. He was then arrested. The commission is investigating him regarding the N1.3 trillion 13% derivation fund from the federation account between 2015 and 2023.

 

“He is also accused of failing to account for the funds, as well as another N40 billion he allegedly claimed was used to acquire shares in UTM Floating Liquefied Natural Gas. He reportedly bought shares worth N40 billion in one of the country’s major banks, representing an 8% equity stake, to support the offshore LNG project. The funds are alleged to have been misappropriated for other purposes.

Investigators are also examining the alleged diversion of funds by the former governor to acquire estates in Abuja and Asaba, Delta State. He is currently being held at the EFCC facility in Port Harcourt.

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Lagos Government Shuts Down Redeemed Church, Celestial Church, Clubs, Event Centres Over Noise Pollution

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15 hours ago

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November 6, 2024

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The Lagos State government has shut down a branch of Pastor E. A. Adeboye’s Redeemed Christian Church of God, a Celestial church, nightclubs and event centres over noise pollution.

The Commissioner for Environment and Water Resources, Tokunbo Wahab, who made this known on Wednesday, said the churches, clubs and event centres were sealed on Tuesday by the Lagos State Environmental Protection Agency (LASEPA) in the Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota areas of the state.

The sealed establishments include: Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Lounge & Lodging, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.

The commissioner in a post on X said, “In a bid to address noise pollution and other environmental violations, the Lagos State Environmental Protection Agency (LASEPA) took action yesterday, closing down several establishments across different parts of the state.

“This enforcement drive, focusing on areas like Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota, is part of LASEPA’s continuous efforts to uphold environmental standards and safeguard public health.

“The affected establishments include Honourable Lounge & Lodging, Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.”

 

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Gen. Taoreed Lagbaja: Tinubu directs flags be flown at half-mast

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17 hours ago

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November 6, 2024

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President Bola Tinubu has directed that Nigeria’s national flags be flown at half mast for seven days across the country to mourn the passing of the late Chief of Army Staff, Lt. Gen. Taoreed Lagbaja.

The late Army chief, who was appointed by Tinubu on 19 June 2023, was said to have passed away on Tuesday night after a prolonged illness.

The Secretary to the Government of the Federation, George Akume, in a statement on Wednesday by his office Director of Information & Public Relations, Segun Imohiosen, said the president expressed regret over Lagbaja’s death.

Akume said, “President Bola Tinubu has expressed regret following the death of the Chief of Army Staff, Lieutenant General Taoreed Abiodun Lagbaja, after a brief illness at the age of 56.

“The President has directed that national flags be flown at half mast throughout the country for seven days in honour of the departed Army chief.

“He profoundly appreciates the services of the departed to the nation and wishes the family the fortitude to bear the great loss.”

Meanwhile, the Ministers of Defence, Mohammed Badaru and Bello Matawalle, have commiserated with the president, the military, and Lagbaja’s family over his death.

In a statement by the Ministry’s spokesperson, Henshaw Ogubike, the ministers described Lagbaja’s death as a great loss to his family, the Army, and the nation at large.

“The passing on to eternal glory shocked us at the Ministry of Defence, as our working relationship with him was commendable; he exhibited the spirit of camaraderie and cooperation with us in the discharge of our mandate.

“The late Chief of Army Staff contributed significantly to internal security operations across Nigeria and also exhibited a high level of professionalism.

“He will be greatly missed by the family, the military, and the nation, as he served the nation with commitment and dedication,” the statement added.

 

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