aljharem:


How much is the limit the executive (in this case the president) power can disburse without the senate approval ?

I mean there must be a limit right ?

I don't think he has a limit expressly stated but will be guided by prevailing demand and circumstances.He has different pool or call it account to choose from for different purpose e.g ecological fund for environmental issues like flood ,just as he also can save for same purpose. Bear in mind some of this key decision are made as a team e.g the national economic forum/team;revenue mobilization,allocation and fiscal committee/commission (rmafc) etc forgeting some though as am not practising.
It's a whole lot more than we think the fact is just that he chairs these team and his decision could be final .... Am sure if otherwise economists/lawyers would have raise concerns since .

The $2.1billion bailout was sourced from Intervention Funds typically made available by the CBN to revive the nation's economy or in this case to bailout the states from economic catastrophe. The national assembly does not need to approve these funds. Specifically, the N413.7bn ($2.1billion) is sourced from the recent LNG proceeds and the remaining N300 billion is a Central Bank-packaged special intervention fund.

Back in 2010, for example, the CBN, in a bid to revive the nation's ailing economy, had set aside intervention funds amounting to N500 billion, for lending to Small and Medium Scale Enterprises (SMEs) and other critical sectors. The senate did not have to approve the spending because it had no appropriation duty to do so.

In the case at hand, the bailout consists of N413.7billion special intervention funds and the balance of about N250billion to N300billion, which is a soft loan to states.

The Senate has no role in the appropriation of these bailout funds. The Debt Management Office (DMO) is also expected to assist states to restructure over N660billion commercial loans as part of the bailout.

President Buhari's approval of these funds is well within his constitutional authority. Additionally, there is full transparency as both the source of the funds and the recipients have been fully disclosed to the public.

This is a far cry from potential criminal activities wherein, funds were moved willynilly from one NNPC account to the other without accountability.

Make una chill, Change is here to stay.

henrysam:

So because they are owing workers and the governors should be bailed out
The constitution should be trampled upon. Pple just argue blindly

lol constitution or what did u call it.wen 7 waz greater dan 19 in ekiti y didn't u help dem with d constitution #ACE

Angel1977:
Was the bailout to the states approved by the Senate or there was no need for approval from the Senate? Was there no need for a substantive Finance Minister to be appointed before such a decision would be made? Just wondering. . . .

Crying wolf where there was none! Money paid into the Federation Account was for the use of three-tier governments. No need for Senate approval.

Should Nigeria stop functioning because ministers were not yet appointed? PS can do the join in the interim very well.

Ask Okonjo to return the $2 billion she took from ECA without approval.

OAM4J:




I don't know how to explain this better. FG account/money and budget is different from money that goes into the federation account which belongs to FG, States and Local Governments.

That money is shared monthly and does not need senate's approval.

While each state assembly approves how each state should spend its portion and other IGR, the senate and House of Reps only approve the income and expenditure of the FG.

If Buhari decides to spend the share of the FG on what is not already in the approved budget then he will need to to get the approval of the Legislature. Right now that is not the case. He only approved sharing of monies that belong to the 3 tiers of government.

I am really enlightened! Very simple and lucid explanation and also without insults! Thank you and God bless!

wirinet:
Sharing of money from the federation account does not pass through the Senate. All monies acrued the Federation account is to be shared according to the sharing formula agreed by law. It is the Federal part of this money that is appropriated by the senate and the state component is appropriated by the state houses of assembly. The Federal and state Governments make their budgets based on the projected sharings from the federation accounts plus internally generated revenue

Buhari seriously needs to declare a state of emergency on Education in Nigeria.

You are sort of misrepresenting facts. First thing you should know is that at any given fiscal year, the Senate gives approval to money shared from the federation account by way of legislating/delibrating on and passing the budget. When the budget is approved, then it is legal for the Revenue Mobilization, Allocation, and Fiscal Commission, in conjunction with the Ministry of Finance to disburse such funds according to the already agreed/approved formula.

Martins301:


You are sort of misrepresenting facts. First thing you should know is that at any given fiscal year, the Senate gives approval to money shared from the federation account by way of legislating/delibrating on and passing the budget. When the budget is approved, then it is legal for the Revenue Mobilization, Allocation, and Fiscal Commission, in conjunction with the Ministry of Finance to disburse such funds according to the already agreed/approved formula.

You have no idea of what you are talking about. The Senate (a federal institution) has no say in how money from the federation account is shared. The money in the federation account belongs to all the Federating units and not the Federal Government. The states and federal government sends representatives to the monthly FMAFC meetings. It is here that the amount acrued the federation account for the previous month is presented and shared according to the agreed sharing formula. Even the proposal to save some money from the Federation Account into in the ECA does not have the approval of the States and so it was done illegally by the Obasanjo and Jonathan administrations. It has nothing to do with the Senate.

I hope you are better enlightened.

As long as Naija workers are paid and happy, na their wahala be dat.

wirinet:


You have no idea of what you are talking about. The Senate (a federal institution) has no say in how money from the federation account is shared. The money in the federation account belongs to all the Federating units and not the Federal Government. The states and federal government sends representatives to the monthly FMAFC meetings. It is here that the amount acrued the federation account for the previous month is presented and shared according to the agreed sharing formula. Even the proposal to save some money from the Federation Account into in the ECA does not have the approval of the States and so it was done illegally by the Obasanjo and Jonathan administrations. It has nothing to do with the Senate.

I hope you are better enlightened.

You are so loud you can't even hear yourself speak. Does Senate approve the national budget for every fiscal year? If your answer is yes then you can go join the rest dots or take a crash course in Nigeria Public Finance 101.

By the way, where does RMAFC derive its powers from and which body approved it?

OAM4J:
Sharing money accrued to the federation account within the tiers of government does not require senate's approval.

Only the FG needs senate's approval if they are going to spend or raise loan out of already approved federal budget.

This is the answer OP.

Had it been it's GEJ that did this,by now the broom sweepers will start foaming from their mouth.

WombRaiders:
APC likes to reward failure.

This is how Oshiomole granted a scholarship to a juvenile delinquent who endangered his life and that of passengers of an airliner by hiding in the landing gear.

Why bail out these states?

Other than Cross River which took bonds and loans in the Duke administration in lieu of their oil assets which Obasanjo dashed Cameroun with Bakassi no other state deserves a bailout.

A state like Osun has been running a deficit budget for 3 yrs straight which was over 5 times the annual gross revenue base.

Why reward such ineptitude with a bailout?

In 2013 Osun budgeted over 210 billion but only generated a gross revenue of 40bn.

Aregberascal continued like this for 3 yrs in a row and these budgets were based mainly from bank loans.

Things got so bad that early this year after bank deductions from source, Osun only had 540 million from federal allocations.

What has Aregberascal got to show for his ineptitude, recklessness and wickedness in managing the wealth of Osun people?

Not a dmn thing.

To reward a state like Osun with a bailout is to justify ineptitude and corruption.

in summary the workers in Osun should suffer for Aregbesola's rascality abi? Try reason well abeg

AlPeter:

in summary the workers in Osun should suffer for Aregbesola's rascality abi? Try reason well abeg

There is another thread here where your APC guys are justifying not paying any arears to the workers.
Take it up with them.

I did not state that the workers not to be paid but rather said that Osun State executive most cough out the money that it has embezzled and not to have our collective wealth used to cover this ineptitude.

If you must know the FG dipped into our foriegn reserve to source for the bailout. The consequence of which the CBN can not meet the Forex reserves leading to further devaluation of the naira.

As I post this Aregbe is not ready to pay more than a month salaries he is owing workers. So what is the bailout for? Is it to pay contractors or for state wages?

The only solution is to impeach Aregbe and conduct an extensive probe of his adminstration from where stolen funds can be recovered and used to pay the state salaries.

AlPeter:

in summary the workers in Osun should suffer for Aregbesola's rascality abi? Try reason well abeg

See your fellow progressives in action https://www.nairaland.com/2447650/osun-workers-insist-minimum-two#35800383

They are defending Aregberascal's insistence to pay only one month out of 8 mths arears.

Martins301:


You are so loud you can't even hear yourself speak. Does Senate approve the national budget for every fiscal year? If your answer is yes then you can go join the rest dots or take a crash course in Nigeria Public Finance 101.

By the way, where does RMAFC derive its powers from and which body approved it?

This is the last time i would be educating you on Nigeria's Fiscal Federation. The Senate only approve Federal Government's Budget, it has no powers over the Federation account.

The Federal Government presents the federal budget to the Senate, andn the Senate approves or modifies the Federal Budget as it deem fit. Meanwhile the State Assemblies also approves or modifies the state budgets. The National Budget you are talking about is the Federal Budget and not the Budget of the Federating units.

I will not comment on this topic again, you can believe whatever you want to believe.

Chimezie250:
That is to show you there is no different between Apc and pdp, same people with different mantra

this is not bihari intention , but trigger by saraki.

AlPeter:

in summary the workers in Osun should suffer for Aregbesola's rascality abi? Try reason well abeg

They voted him in.... So they should suffer for their misguided actions. Next time, they should be able to vote with their heads

WombRaiders:


There is another thread here where your APC guys are justifying not paying any arears to the workers.
Take it up with them.

I did not state that the workers not to be paid but rather said that Osun State executive most cough out the money that it has embezzled and not to have our collective wealth used to cover this ineptitude.

If you must know the FG dipped into our foriegn reserve to source for the bailout. The consequence of which the CBN can not meet the Forex reserves leading to further devaluation of the naira.

As I post this Aregbe is not ready to pay more than a month salaries he is owing workers. So what is the bailout for? Is it to pay contractors or for state wages?

The only solution is to impeach Aregbe and conduct an extensive probe of his adminstration from where stolen funds can be recovered and used to pay the state salaries.

am with you in this and thanks for the links may I go fire for there

Angel1977:
Was the bailout to the states approved by the Senate or there was no need for approval from the Senate? Was there no need for a substantive Finance Minister to be appointed before such a decision would be made? Just wondering. . . .

its buharis high handedness that will soon lead to state of anarchy . APC should continue to assassinate our democratic system by causing confusion in our legislative arm of government.

OAM4J:
Sharing money accrued to the federation account within the tiers of government does not require senate's approval.

Only the FG needs senate's approval if they are going to spend or raise loan out of already approved federal budget.

So, in essence, the money that was shared to the states shouldn't be called a 'bailout' since the money belonged to the states.

Or were some FG funds also given to the states?

THE NASS SHOULD IMPEACH BUHARI FOR DOLLING BAILOUT MONEY TO STATES WITHOUT SENATE APPROVAL. WHY WOULD SOMEONE WHO CALL HIMSELF MR INTEGRITY DO SUCH A THING? THIS IS NOT MILITARY ERA, ITS DEMOCRACY. MAY BE BUHARI NEEDS TO ATTEND NATIONAL DEMOCRATIC INSTITUTE FOR ORIENTATION FIRST BEFORE A CONTINUED RULE

om4j you are wrong. Don't forget that the budgeted money is what the governors squandered that require bailout, hence, as you already agreed, money to be spent thereafter for the extra budget must be approved by the Senate. It is impeachable offence.

The Federal Government needs the approval of the National Assembly to spend money that belongs to the Federal Government. The state governments need the approval of the state assemblies to spend money that belongs to the states.

The money that Buhari shared does not belong solely to the Federal Government. Money in the Federation Account belongs to the Federal Government, the state governments and the local governments. The constitution states that the money must be shared between the three tiers of government and it states how this is to be done. That's why this is not technically a bailout, because the state governments are getting money that belongs to them.

National Assembly approval is only required if the Federal Government wants to spend its own share of the money. State assembly approval is only required if the state wants to spend its own share of the money. All that's required of the National Assembly is that they should approve a revenue sharing formula and this has been done since Obasanjo's tenure.


Every month the Minister of Finance meets with state commissioners of finance and the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to share money in the Federation Account (Federation Account Allocation Committee [FAAC]) This does not require National Assembly approval. The FAAC has already met and approved the sharing of the funds.

Also note that the Excess Crude Account is an unconstitutional account. The funds in the Excess Crude Account should have been paid into the Federation Account.

C - Public Revenue

162. (1) The Federation shall maintain a special account to be called "the Federation Account" into which shall be paid all revenues collected by the Government of the Federation, except the proceeds from the personal income tax of the personnel of the armed forces of the Federation, the Nigeria Police Force, the Ministry or department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.

(2) The President, upon the receipt of advice from the Revenue Mobilisation Allocation and Fiscal Commission, shall table before the National Assembly proposals for revenue allocation from the Federation Account, and in determining the formula, the National Assembly shall take into account, the allocation principles especially those of population, equality of States, internal revenue generation, land mass, terrain as well as population density;

Provided that the principle of derivation shall be constantly reflected in any approved formula as being not less than thirteen per cent of the revenue accruing to the Federation Account directly from any natural resources.

(3) Any amount standing to the credit of the Federation Account shall be distributed among the Federal and State Governments and the Local Government Councils in each State on such terms and in such manner as may be prescribed by the National Assembly.

(4) Any amount standing to the credit of the States in the Federation Account shall be distributed among the States on such terms and in such manner as may be prescribed by the National Assembly.

(5) The amount standing to the credit of Local Government Councils in the Federation Account shall also be allocated to the State for the benefit of their Local Government Councils on such terms and in such manner as may be prescribed by the National Assembly.

(6) Each State shall maintain a special account to be called "State Joint Local Government Account" into which shall be paid all allocations to the Local Government Councils of the State from the Federation Account and from the Government of the State.

(7) Each State shall pay to Local Government Councils in its area of jurisdiction such proportion of its total revenue on such terms and in such manner as may be prescribed by the National Assembly.

(8 ) The amount standing to the credit of Local Government Councils of a State shall be distributed among the Local Government Councils of that State on such terms and in such manner as may be prescribed by the House of Assembly of the State.

(9) Any amount standing to the credit of the judiciary in the Federation Account shall be paid directly to the National Judicial Councils for disbursement to the heads of courts established for the Federation and the States under section 6 of this Constitution.

(10) For the purpose of subsection (1) of this section, "revenue" means any income or return accruing to or derived by the Government of the Federation from any source and includes -

(a) any receipt, however described, arising from the operation of any law;

(b) any return, however described, arising from or in respect of any property held by the Government of the Federation;

(c) any return by way of interest on loans and dividends in respect of shares or interest held by the Government of the Federation in any company or statutory body.

http://www.nigeria-law.org/ConstitutionOfTheFederalRepublicOfNigeria.htm

Note: the $2.1 billion LNG fund is from the Federation Account.


http://sunnewsonline.com/new/presidential-bailout-for-states/

CFCfan:

So, in essence, the money that was shared to the states shouldn't be called a 'bailout' since the money belonged to the states.

Or were some FG funds also given to the states?

True, the money is not fully a bailout in the full sense of it. Perhaps it was called a bailout because of the CBN component. The states were allowed to renegotiate their existing loans and also borrow more.