The Pacesetter Frontier Magazine

Tag: NGF

  • Rising subsidy’ll stop states from paying salaries – Governors

    Rising subsidy’ll stop states from paying salaries – Governors

    The Nigeria Governors’ Forum has lamented that the subsidy on petroleum products, especially Premium Motor Spirit (petrol), has placed a huge financial burden on the states.

    The NGF, which is the umbrella body for the 36 governors of the federation across party lines, made this known in a memo forwarded to the House of Representatives.

    The memo is in response to the call for memoranda by the House’ Ad Hoc Committee on the Volume of Fuel Consumed Daily in Nigeria, which is investigating the actual amount of PMS the country consumes daily.

    The memo, which was signed by the Head, Legislative Liaison, Peace and Security, NGF, Fatima Usman Katsina, for Chairman of the Forum, was titled ‘Findings on the Volume of Fuel Consumed Daily in Nigeria,’ dated July 1, 2022, and addressed to committee’s Chairman, Abdulkadir Abdullahi.

    The governors referred the House to a November 2021 report by its National Executive Council’s ad hoc committee interfacing with the Nigeria National Petroleum Corporation on the appropriate pricing of PMS in Nigeria, which was chaired by Governor of Kaduna State, Nasir el-Rufai, and had governors of Edo, Jigawa, Ebonyi, Akwa Ibom and Ekiti, as well as the Governor of the Central Bank of Nigeria; Minister of Finance, Budget and National Planning; Accountant-General of the Federation, Group Managing Director of the NNPC and the Permanent Secretary, MBNP.

    The memo partly read, “Although the operating environment has significantly worsened since the report was released, with NNPC now consistently reporting zero remittance to the Federation Accountant as profit from joint venture, production sharing contract and miscellaneous operations, the position of the forum remains generally the same.”

    The NGF recalled how the report noted that the “federation (FAAC) net oil & gas revenues have been declining since 2019 and are projected to decline significantly in 2022 by between N3bn and up to N4.4bn unless action is taken now.” The memo read, “The following are some of the major findings relating to the volume of fuel consumed in the country:

    “Remittances to the Federation Account Allocation Committee have continued to shrink as NNPC recovers shortfall quite arbitrarily from the Federation’s crude oil sales revenue. FAAC deductions for PMS subsidy are above 2019 levels, even without adjusting for reduced purchasing power of the naira due to inflation and FX rate deterioration.

    “An analysis of the average monthly PMS consumption by states showed that a third of the country accounts for over 65 per cent consumption of PMS. The analysis showed that the following States of Lagos, Oyo, Ogun, Abuja, Delta, Kano, Kwara, Edo, Rivers, Kaduna, Kebbi and Adamawa accounted for 65 per cent of PMS consumption in the country. Most states with high PMS consumption either have borders with neighbouring countries or are in close proximity, this has been an avenue for smugglers to benefit from profitable arbitrage opportunities in PMS pricing.

    “Households directly consume only about 25 per cent of the PMS that is consumed nationally, with the remaining three-quarters being consumed by firms, MDAs, transport operators or smuggled to neighbouring countries where the PMS price is nearly three times what it is in Nigeria; and of the PMS consumed by households, the richest 40 per cent of households account for over three-quarters of the PMS purchased by households, while the poorest 40 per cent of households purchased less than 3 per cent of all PMS sold in Nigeria.

    “In the current fiscal regime, remittances to FAAC would continue to shrink as NNPC recovers this shortfall from the Federation as a result of crude oil price recovery. The report recommended a PMS pricing structure that addresses regional arbitrage and smuggling of PMS and provides additional revenue to the Federation Account. There is a significant market opportunity for additional export revenue streams for Nigeria to be had given the price parity with our neighbouring countries.

    “Privatisation of the three government refineries as is, or after their full rehabilitation if affordable and viable, and expediting the licensing procedure for modular refineries will reduce the recurring government expenditure on refinery maintenance and increase the country’s refining capacity.”

    The governors also noted that there were also economic risks highlighted in the report. “Fiscal pressures are threatening Nigeria’s recovery, as rising prices continue to push millions into poverty,” they stated.

    The memo further read, “Rising prices are pushing millions of Nigerians into poverty. Rising inflation between 2020 and 2021 is expected to have pushed an additional 5-6 million Nigerians into poverty. Food insecurity is increasing in both poor and non-poor households, with some adults skipping meals. Because inflation is high, even if it remains stable, it will continue to push many more Nigerians into poverty.

    “Fiscal pressures are growing unsustainably with the PMS subsidy significantly reducing the flow of revenues into the Federation Account. Thirty-five out of 36 states are likely to see transfers from the federation fall (in nominal terms) between 2021 and 2022, with the average decline projected to be about 11 per cent. Most states are already experiencing fiscal stress, with 30 out of 36 states recording fiscal deficits in 2020, including Lagos and every oil-producing state except Akwa Ibom.

    “With the projected decline in gross distributable federation revenues in 2022, fiscal deficits and debt burdens will grow even larger and faster. This will mean that transfers from the federation will not be enough to cover even salaries, and certainly not recurrent costs, which are growing in nominal terms.

    “With the coming into effect of the Petroleum Industry Act, gross oil & gas revenues could be (much) lower than currently projected because of the new fiscal terms and the earmarking of deductible revenues specified in the PIA, and that could reduce net oil & gas revenues even further.”

    The NGF stated that greater accountability and transparency around oil and gas revenues “are the only immediate options for easing the pressure on government finances and maximising socially responsible profit gain.”

    (Punch)

  • NGF to hold a crucial meeting on Wednesday.

    The 36 state governors would meet on Wednesday in Abuja to discuss pressing national concerns.

    The meeting is scheduled for the Nigeria Governors’ Forum (NGF) secretariat in the Federal Capital Territory (FCT) at 8pm.

    An invitation to the governors was sent by the Director-General of the NGF, Asishana Okauru, according to a statement issued by Abdulrazaque Bello-Barkindo, head of public affairs of the forum.

    Bello-Barkindo said pressing national issues would be discussed in the meeting and that the governors would also receive briefings from the NGF’s Fiscal Transparency, Accountability and Sustainability (SFTAS) team.

    At the end of the meeting, Chairman of NGF and Governor of Ekiti, Kayode Fayemi, is expected to address a press conference on issues discussed.

    Meanwhile, the Peoples Democratic Party (PDP) Governors Forum would meet in Port Harcourt, the Rivers State capital, today.

    The forum, in a statement by its Director General, CID Maduabum, yesterday, said the meeting to be presided over by its chairman and Sokoto State Governor, Aminu Tambuwal “will review the state of the states, the state of the nation and readiness of the PDP to provide the necessary leadership to rescue and rebuild Nigeria.

    “The PDP governors are working in concert and consultations with other leaders of the party and in particular the Senator Iyorchia Ayu-led National Executive Committee to craft a credible process and programme for Nigeria’s positive rebirth. Ayu has been invited to attend the Port Harcourt meeting to hold consultations with the governors on strategies for executing the Rescue and Rebuild Nigeria project.”

    (Sun)

  • Northern Governor’s Forum oppose 2023 powershit to the South

     

    The Northern States Governors’ Forum on Monday opposed the call by its Southern counterpart that the Presidency should move to the South in 2023.

     

    The northern governors, who stated this at their meeting in Kaduna,  said the call by the Southern Governors’ Forum was against the constitution of the country.

     

    But groups including the Ohanaeze Ndigbo, the Pan-Niger Delta Forum, Afenifere and the Delta State Government said the northern governors’ position was against the unity of the country.

     

    The southern governors at their recent meeting in Enugu reiterated their demand that the Presidency should shift to the South in 2023.

     

    On Monday, the northern governors said although some of them had endorsed the Southern governors’ call for power shift to the South, the regional governors collectively condemned such a call.

    They said the statement by their Southern counterparts contradicted the provision of the Constitution of the Federal Republic of Nigeria 1999 as amended.

     

    They  added that the elected President must meet the requirements which include getting “the majority votes, scoring at least 25  per cent of the votes cast in two thirds of the states of the federation; in case of a runoff, a simple majority win.”

     

    These were contained in a communiqué issued  after an emergency meeting of the regional governors and the chairmen of Northern Council of Chiefs  held in Kaduna on Monday.

     

    Northern govs await S’Court judgment on VAT

    The Chairman of the Forum and Governor of Plateau State, Simon Lalong, who read out the communiqué on behalf of his colleagues, also said the issue of the  collection of Value added Tax by states was before the court.

     

    He said it would amount to subjuduice to take a decision on the matter.

     

    Lalong insisted that it was the view of his colleagues that until  there is pronouncement by the Supreme Court on the substantive matter between Rivers and the Federal Inland Revenue Service, “the matter is subjudice and Northern States Governors’ Forum would respect this.”

     

    The 11-point-communique read, “The forum observed that some northern  governors had earlier expressed views for a power-shift to three geopolitical zones in the South with a view to promoting unity and peace in the nation.

     

    “Notwithstanding their comments, the forum unanimously condemns the statement by the Southern Governors’ Forum that the Presidency must go to the South.

     

    “The statement is quite contradictory to the provision of the Constitution of the Federal Republic of Nigeria (1999) as amended that the elected President shall score the majority votes; score at least 25 per cent of the votes cast in two thirds of states of the federation. In the case of a runoff, a  simple majority win.

     

    “The Northern State Governors’ Forum considered the ongoing national debate on the collection of Value Added Tax. As responsible leaders while we are constraint by the fact that the matter is sub-judice, we however for the purposes of educating the public make the following observations:

     

    “The judgment of the Federal high Court calls to question the constitutionality of VAT, withholding tax, education tax, Niger Delta Development Commission, National Information Technology Development Agency, 13% derivation, National Economic Development Council and many other currently levied and collected by the Federal Government of Nigeria, Federal Inlands Revenue Service.

     

    “Rivers and Lagos state governments have enacted their own VAT laws and the Southern Governors’ Forum has expressed support for this course of action;

     

    “VAT is being confused by these state governments as a sales tax. If every state enacts its own VAT law, multiple taxation will result in increase in  prices of goods and services and collapse in interstate trade. VAT is not a production tax like excise, but terminal tax which is paid by the ultimate consumer;

     

    “Another confusion is ignoring observation above and its “overall effect”.  The reason Lagos accounts for our 50 per cent VAT collection is because most of the telecommunication companies, banks, manufacturing and other trading activities have their headquarters in Lagos with the resultant and wrongful attribution of VAT

     

    “Until and unless the Supreme Court pronounces judgment on the substantive matter between Rivers State and Federal Government, the matter is sub-judice and Northern Governors’ Forum would respect this.”

     

    The governors also lauded the current onslaught by the military on bandits and insurgents in the some part of the north.

     

    Besides, the forum   decried the high level of conspiracies being perpetrated by some judicial officers in releasing  and granting bail to arrested criminals.  “This attitude sabotages the fight against criminality, therefore, there the need to develop good and robust intelligence mechanism amongst States was identified as a panacea,” Lalong added.

     

    Meanwhile, stakeholders in the South, including  have taken on northern governors over  opposition to power shift to the South.

     

    On its part, the Delta State Government said  it  aligned with the decision of Southern Governors’ Forum.

     

    The state Commissioner for Information, Mr Charles Aniagwu, who stated this in an interview with The PUNCH on Monday in Asaba, said, “The Delta State Government has already aligned with the decision of southern governors, so it does not matter whether the northern governors are opposing it. We were there when the decision was taken and that is final as far  as Delta is concerned”

     

    Northern govs exercising their right of free speech – Akeredolu’s aide

    When contacted, his Ondo State counterpart,  Mr Donald Ojogo, said, “They (northern governors) have expressed and indeed exercised their rights under the freedom of expression. No one can stop them from expressing themselves.”

     

    Northern govs working towards Nigeria’s break-up – Ohanaeze

    But the apex Igbo socio-cultural organization,  Ohanaeze Ndigbo, described the position of the northern governors as unfortunate.

     

    It  said the North  benefited from the Nigerian union more than it contributed to it.

     

    Spokesman  for  the Igbo apex body, Chief Alex Ogbonnia, who spoke to one of our correspondents on the telephone, warned the northern leaders to have a rethink if they wanted the Nigerian union to continue.

     

    Ogbonnia said, “If there is any group of people that benefits from the corporate existence of Nigeria, it is the North. This is because what northerners bring to the table is far  less than what they take from the table. So instead of looking for a way for Nigeria to remain united, develop and grow, they are looking at the way Nigeria will break up. It is simply inconceivable that the North that benefits the most from this country would like the country to break up.

     

    “I have often said that if they are talking of constitutionality, as a matter of fact there is no place it is written in the constitution, but there is a gentleman agreement about power rotation between the north and south.

     

    “The resolution was reached at the NUC (National Universities Commission) Event Centre at Abuja, and that was when Abdulsalami Abubakar was the Head of State and Commander in-Chief. It was agreed that power would shift from North to the South and that was why all the parties concentrated on  the South and it was zoned to the South-West in 1999.

     

    “After Obasanjo it went to  Yar’Adua from North, to Jonathan from South and returned to North, Buhari. So now after Buhari,  it is supposed to come down South. That is gentleman agreement. It is unconscionable for the North to begin to talk about the power remaining in the North now.

     

    “So it is unfortunate that they will be trying to go contrary to the views expressed and demand by the southern governors. As far as I am concerned, the position of the Southern Governors is the Ohanaeze’s stand. Ohanaeze stands with the southern governors that power should come down to the South.”

     

    Ogbonnia, however stated, “I don’t want to believe that the northerners are happy with what is happening in the country today.  Only a person who is happy with what is happening will be talking about efforts that will bring about crisis and disunity. What is happening in Nigeria today is a result of injustice and inequity. Instead of trying to ameliorate the situation and bring about the desired the change based on equity , fair play and somebody will be very busy orchestrating more injustice.”

     

     

     

     

     

     

    Source: www.punchng.com

  • The Headquarters of Nigeria Governors Forum shut down by Youths in protest

     

     

    Hundreds of youths under the umbrella of Nigerian Youth Union (NYU), and others have shut down the headquarters of the Nigeria Governors’ Forum (NGF) in protest.

     

    The Youths in their large numbers barricaded the NGF office located at Lake Chad Crescent, Maitama, Abuja, as early as 9am denying staff and guests opportunities to access the office.

     

     

     

    Their peaceful action temporarily caused pandemonium as commuters were forced to take alternative routes to their homes and offices.

     

    President of the Union, Chinonso Obasi, who led the protest said the decision to stage the protest to drive home their message to the governors after the expiration of their ultimatum to the Governors to rise to the occasion of quality primary healthcare services to Nigerians.

     

    The youths occupied the gate of the NGF office for several hours, insisting they be attended to by the Director General of the NGF or any other senior member of the Forum.

     

    After few hours of peaceful protest, their letter of request were received by the Secretariat of NGF with a promise to expedite the process of reviving the primary health care system.

     

     

     

    Source: www.sunnewsonline.com