Television Nigerian

Between January and June 2023, the Federal, States, and Local Government Councils (LGs) divided N4.37 trillion in statutory revenue allocations from the Federation Account.

The most recent report from the Nigeria Extractive Industries Transparency Initiative (NEITI) on the allocations of revenue to the Federation Account for the first half of the year contains this information.

The report was released on Thursday in Abuja by Dr. Orji Ogbonnanya Orji, Executive Secretary of NEITI. He stated that the total distributable FAAC allocations to the three levels of government in the first and second quarters (Q2) of 2023 were N2.32 trillion and N2.04 trillion, respectively.

According to the NEITI quarterly assessment, inflows into the Federation Account fell by 23% in Q2 2023, which had an impact on the distributable revenue, which fell by 12% in comparison to the total revenue distributed in the first quarter.

Over the course of the six-month period, “each tier of government received more than N1 trillion,” he claimed.

According to the study, a breakdown of the revenue receipts revealed that the State governments collected N1.5 trillion, or 34.5%, while the federal government received approximately N1.78 trillion, or 40.7%.

The study states that N1.08 trillion, or 24.8% of the total distributable revenue for the time period, was given to local government councils.

It also stated that a comparison of the total allocations between the corresponding quarters in 2022 and 2023 revealed a 16.7% increase in distributable revenue, from around N4.05 trillion shared in 2022 to N4.366 trillion shared in 2023.

As a result, it was discovered that the federal government’s allocation for the time under review increased by 19.8% to N1.78 trillion in 2023 from N1.48 trillion during the same period in 2022.

Similarly, the research said that allocations to the LGs increased by 16.8% to N1.08 trillion in 2023 from N926 billion in 2022, while allocations to the State governments increased by around 11.2% to N1.42 trillion from N1.26 trillion in 2022.

The increase in half-yearly allocations in 2023 followed a positive rising trend from the preceding year, during which the distributable revenue for the first half of the year increased by 16.7%, from N3.47 trillion between January and June 2021 to N4.05 trillion in the same time the following year.

Additionally, allocations to the federal, states, and LGs all saw overall increases of 8.8%, 26.5%, and 14.2%, respectively.

However, it claimed that when compared to the same period in 2022, the study revealed a reduction in the absolute amount of FAAC distribution in Q2, with total distributable revenue of N2.02 trillion being 13% less than the approximately N2.16 trillion distributed in the second quarter of 2022.

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Further examination of the payments made to the states, according to the report, revealed that Delta state received the largest allocation in the second quarter of 2023, totaling N102.79 billion. Akwa Ibom came in second with N70.01 billion, followed by Rivers with N69.73 billion, Lagos with N60.64 billion, and Bayelsa with N56.34 billion.

It stated that the entire allocations to the following 15 states (N349.3 billion) were surpassed by the total disbursements to these five states (N359.5 billion), or 35.9% of the overall FAAC allocations.

The worst 10 states earned 17.3% of the money split in the second quarter of 2023, it was stated, adding that the total allocation to the five states was also greater than the share of distribution to the remaining 19 states combined.

States with the lowest allocations, totaling N16.71 billion, N16.84 billion, N16.95 billion, N17.22 billion, and N17.45 billion, respectively, were Nasarawa, Ebonyi, Ekiti, Gombe, and Taraba.

It stated that, with the exception of Lagos, four of the top five states in terms of allocations each received a sizable portion of the 13% derivation money allotted to oil-producing states.

It stated that the cumulative allocation to the five states was higher than the share of allocation to 19 other states, and that the total disbursements to these five states (N359.5 billion), or 35.9% of the total FAAC allocations, were higher than the total allocations to the following 15 states (N349.3 billion).

Additionally, it stated that 17.3% of the revenue distribution for the second quarter of 2023 went to the worst 10 states.
It was said that the three primary revenue-generating organisations sent the majority of their remittances to the federation account.

They were identified as the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS), and the Nigeria Upstream Petroleum Regulatory Commission.

It was revealed that these funds came from a variety of sources, including oil and gas royalties, petroleum profit tax, corporate income tax, value added tax, import charges, and excise taxes.

Additionally, N1.84 trillion in revenue remittances in the second quarter of 2023 came from both mineral and non-mineral sources, with N809 billion, or 44%, coming from mineral revenue (mostly from oil and gas), and N1.03 trillion, or 56%, coming from non-mineral sources.

The research also highlighted a significant discrepancy between revenue disbursements from the oil and gas and solid minerals sectors, highlighting how this was a result of the latter’s ongoing underperformance over time.

With a total deduction of N9.03 billion in the second quarter of 2023, Lagos came out on top among the 36 states, followed by Delta (N6.76 billion), Ogun (N6.10 billion), Kaduna (N5.63 billion), Osun (N5.60 billion), and Imo (N5.51 billion). This is due to debt service obligations and their effects on the net allocations of the states.

“The lowest deductions, totaling N1.16 billion, N1.29 billion, N1.45 billion, N1.51 billion, and N1.88 billion, were made by Jigawa, Anambra, Nassarawa, Kebbi, and Enugu States.

According to the report, “the nine oil-producing states, namely Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo and Rivers states received allocations relative to their share of the oil and gas as well as other minerals extracted from their domains,” it stated.

According to the forecast, Nigeria’s balance of payments would improve with effective management, smart use of savings from subsidy payments, and increased demand that was totally met by product imports in the first half of 2023.

It stated that the decline in demand would unintentionally result in a comparable decrease in the amount of money required to pay for premium motor spirit (PMS), which was the most valuable import overall, he claimed.

The recent unification and floating of the exchange rate policies undertaken to strengthen and stabilise the economy were warmly welcomed by the report with great expectations.

“With the average exchange rate of N713.69 to $1, which is nearly a 55% increase over the rate of N460.52 to $1 recorded during Q2, the value of export profits sent to the Federation Account will be greatly increased by more than 50%.

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It advised that the value of foreign capital inflows, such as investments, loans, and grants, would increase as a result of earnings from the new exchange rate through exports.

The study also encouraged the Central Bank of Nigeria to emphasise measures to control the currency rate in order to support the efficient execution of the deregulation strategy and stable inflows into the Federation Account that depend on foreign exchange.

According to Works Minister David Umahi, the Federal government is not now able to reimburse State governments for money spent on Federal Roads.

During his Thursday visit to Oyo State Governor Seyi Makinde in Ibadan, Umahi made this clear.

According to the News Agency of Nigeria (NAN), the Minister is in Oyo State on a two-day working visit.

“The federal government will not be able to commit at this time due to the state of the economy.

“However, records of such road projects done by the states would be kept and could be revisited when the economy improves,” he said.

He praised Makinde for the administration’s involvement in road construction.

According to the minister, the intervention lessened people’s suffering.

“We are one government, whether it be for state or federal highways. The goal and duty of office is to put the interests of the people’s wellbeing ahead of all other considerations, he stated.

Umahi pressed Makinde to use concrete pavement technology in road building projects, claiming that it was more resilient and less expensive than asphalt roads.

He added that about 95% of the roads he developed as governor of Ebonyi were constructed with concrete pavement, saying that road projects using concrete pavement in Lagos State had been successful.

The Minister explained that he was inspecting South West federal government road projects when asked why he was in Oyo State.

In Abuja, according to Umahi, he met with every contractor in charge of the North West, North Central, and South West road projects.

“After the meeting, I decided to visit these projects to know the quality of the work done and other things on the ground,” he stated.

In order to successfully complete the federal government’s initiatives in the state, he further sought further collaboration from the Oyo state administration.

Makinde responded by thanking the minister for his visit.

He claimed that Umahi’s record as the leader of Ebonyi speaks for itself.

The governor claimed that his administration gave priority to road projects since they were crucial to the economy.

Whether they be state or federal roadways, we are dedicated to the rehabilitation and reconstruction of numerous road projects.

“For instance, it took us two years to obtain federal government approval for the 34 km Oyo-Iseyin road, which we immediately gave to a contractor after receiving it due of its significance to the state’s agribusiness.

The former president Olusegun Obasanjo will open the route on September 15. Although the documents are there and we will present them to the Minister, we are not asking for a reimbursement right away.

Makinde added that his administration would keep spending money on road projects to advance the state.

He informed the minister of his preparedness to work with the federal government to dualize the Ibadan-Abeokuta road’s Oyo state section.

The governor also let the minister know that he and his colleagues in the states of Lagos and Ogun had agreed to light the Lagos-Ibadan Road.

He said that because it was the busiest road in the nation, lighting the entire section of it would improve safety along the road.

To combat procurement corruption, which accounts for more than 70% of total corruption in Nigeria, Civil Society Organisations (CSOs) have urged President Bola Ahmed Tinubu to form and inaugurate the National Council for Public Procurement as soon as possible.

The CSOs also asked for the establishment of the Chartered Institute of Purchasing and Supply Management of Nigeria, CIPSMN, to help combat procurement corruption in the country.

The demands were stated in a Communique produced as the result of a meeting attended by Prof Ismaila Mande of the National University of Nigeria, Wisdom Olisa of the NGO Network, and Victor Enejuire of the Centre for Social Justice.

On Thursday, August 24, 2023, in Abuja, a one-day Roundtable on “CSOs Strategic Alliance and Think-tank Against Public Procurement Corruption in Nigeria” would be place.

The Roundtable was held by the Procurement Observation and Advocacy Initiative (PRADIN), in conjunction with the Civil Society Legislative Advocacy Centre (CISLAC), the Human and Environmental Development Agenda (HEDA), and the Africa Network for Environment and Economic Justice (ANEEJ).

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“Tackling High-Level Corruption in Public Procurement” was the event’s theme.

Participants were drawn from key stakeholders such as the Bureau of Public Service Reforms (BPSR), the Independent Corrupt Practises and Other Related Offences Commission (ICPC), the Economics and Financial Crimes Commission (EFCC), and the Strategy Implementation Office of Presidential Executive Order 5.

According to the Communique, inadequate monitoring and prevention of frauds in procurement of goods, works, and services account for more than 70% of total corruption in the public sector, as researched by NGO Network since 2010.

It was noticed that the failure of successive governments, from President Musa Yar’Adua to President Muhammed Buhari, to establish the National Council for Public Procurement, NCPP, is a huge defeat in the battle against corruption, as it renders most procurement activities illegal.

According to it, noncompliance with some aspects of the Public Procurement Act 2007 has resulted in a lack of professionalism in the administration and execution of effective procurement practises in Nigeria.

It also stated that a lack of effective and continuous synergy between the government, civil society organisations, and professional bodies is a major reason why corruption cases are on the rise despite massive investment by the government and the people.

It went on to say that the lack of a bi-annual PROCUREMENT AUDIT of Ministries, Departments, and Agencies, MDAs, from 2007 to present is a huge window for corruption and abuses to be recorded in the system.

It therefore recommended that the government of President Ahmed Bola Tinubu establish and inaugurate the National Council for Public Procurement, as well as the Chartered Institute of Purchasing and Supply Management of Nigeria, CIPSMN, among other strategic steps to address the country’s procurement corruption challenge.

“On the basis of the foregoing considerations, the participants consequently resolved as follows:

“That the Government of President Ahmed Bola Tinubu should, without further delay, constitute and inaugurate the National Council for Public Procurement and the Chartered Institute of Purchasing and Supply Management of Nigeria, CIPSMN as contained in Part 1 Section 1 of the two existing loss Laws to strengthen the fight against procurement corruption in the face of rising high-profile cases in the country.”

“That the establishment of the NCPP, as well as compliance with Sections 5-17 and 55 of the Public Procurement Act 2007, will ensure professionalism in management and the application of efficient procurement practises, thereby reducing corruption to its bare minimum.”

“That procurement corruption, which accounts for the majority of corruption as identified in previous research by CSOs and the Roundtable, is a serious concern to all participants, and thus resolved to engage new strategies by all stakeholders to combat the phenomenon.”

“That a strengthened partnership between the government, particularly anti-corruption agencies, civil society organisations, and professional bodies, will aid in the prevention and fight against procurement corruption in Nigeria.”

According to the Communique, participants at the Roundtable expressed their thanks and congratulated the event’s organiser, and they asked for more synergy, collaboration, and partnership in the fight against misprocurement to reduce the high degree of corruption in the public sector.

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Participants also urged the Legislators in the 10th Assembly to be vigilant and take note of the concerns surrounding procurement corruption in order to assist them in their oversight roles.

According to it, the organisers commended the ICPC, EFCC, BPSR, SITOPE, CIPSMN, Academia, as well as CSOs and the media in attendance for their commitment and called for continued collaboration in this cause.

Festus Keyamo, SAN, Minister of Aviation and Aerospace Development, has suspended the contentious Nigeria Air Project and airport concessions undertaken by President Muhammadu Buhari’s immediate predecessor.

According to reports, the Nigeria Air project and the concessioning of the Lagos, Abuja, Kano, and Port Harcourt airports have caused so much controversy that experts in the aviation business have asked for their suspension, claiming they are of no benefit to the sector.

However, on his first visit and tour of the Murtala Muhammed Airport in Lagos, the Aviation Minister stated that he has paused all planning and arrangements for the projected national carrier, Nigeria Air.

On the move of international airlines to the new Lagos terminal, Keyamo stated that the new Lagos terminal had been underutilized because it could not accommodate wide-bodied aircraft, and that the airlines would use the terminal while the government procured large buses to transport passengers.

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He also indicated that the old international terminal at Murtala Muhammed International Airport in Lagos will be closed down by October 1, 2023 for renovations, and that all private hangars such as Dominion Hangar, EAN Hangar, and others would be relocated to make space for the growth of the new terminal.
“The old terminal was the source of the majority of complaints.” For Nigerians passing through, that location is an eyesore. The lifts aren’t working. The hallway is uninviting, and there is no air conditioner. We have a new terminal, however it cannot be used. “It was not designed with large planes in mind,” Keyamo explained.