Nigeria governors’ insistence on sharing every money that accrue into the federation account as stipulated by the Constitution is running the country aground. The Minister of Finance and Coordinating Minister for the Economy CME, Dr. Ngozi Okonjo-Iweala stated this in Abuja. She wondered: “how many governors have saved any money? They should understand the dynamics.”
She said the country is going broke, with only $3.6 billion left in the excess crude account.
The Coordinating Minister for the Economy (CME) spoke when she met with members of Civil Society Organisations (CSOs) in Abuja to discuss the government’s transformation agenda.
In her view, governors’ insistence on sharing every revenue is unhealthy for the country.
With just $3.6 billion left in the excess crude account after withdrawals to augment monthly allocations to the three tiers of government, Dr Okonjo-Iweala warned that “should the price of oil drop, we have no cushion”.
“The $3.6 billion in the excess crude account is not enough to sustain Nigeria for any period of time,” she said.
Dr Okonjo-Iweala noted that if Nigeria do not have arguments of constitutionality and fiscal federalism, she will not progress and there is need to address this.
By this, she meant that there should be less talk about what the Constitution says and the desire for fiscal federalism and concentrate on saving for the future.
The minister recalled that “it was difficult getting governors to agree to $1 billion savings for the Sovereign Wealth Fund (SWF)”.
“Now that the price of oil is high, we should be happy but because the quantity we produce as a country has dropped, we are not selling expected quantities. So, not much money is coming in. We are selling below budgeted quantities,” she said.
The Federal Government, Mrs Okonjo-Iweala said, “is not dipping hands in anything”. I can tell you how much is in every account. We must save for the future because soon Ghana and Angola will join the league of countries that have savings, whereas Nigeria is fast depleting the little she has.”
She went on: “Nigeria, because of fiscal federalism, cannot save. The Constitution says the President should manage the economy for the benefit of everybody; the decision to save is also part of the management of the economy for the benefit of the people of Nigeria. Every state can save, but the Federal Government can save for all Nigerians. The governors can insist on accountability in the management of the SWF as a guarantee against their apprehension.”
To her, the governors are “100 per cent right to demand for transparency and how and what the money saved is spent”. “But, they are on the council of the SWF as well as Civil Society Organisations; there should be no fear. Saving is the right thing to do.”
Nigeria, she said, is not leaving in isolation and it is a part of a global community that depends on a product sold internationally. The revenue that comes from the sale of this single product (crude oil), she added, comes periodically, stressing that “there is no money stacked up anywhere, which is why I am pushing for savings, in case the Nigeria National Petroleum Corporation (NNPC) does not sell crude oil or cannot remit money as it’s being experienced in recent times.”
Mrs Okonjo-Iweala argued that since “60 per cent of our money and products comes from and goes to Europe and USA, if they are not doing well, we suffer too. “Unemployment in the USA is at a crisis level same as in Europe,” she said.
“That product determines how the economy grows and the nation’s expenditure fluctuates with revenue. Such volatile pattern of development crashes the Gross Domestic Product (GDP). To make expenditure smooth necessitated budget benchmarking.”
She noted that the years between 2003 and 2007 were the only steady time in Nigeria’s recent economic life because it was when Nigeria saved and after the period (2008-2009), when the price of oil crashed, the government was drawing from savings to pay bills.
The minister dropped another bombshell when she disclosed that the ministry does not know how much is spent on subsidy. What the ministry does, according to her, “is to get the accountants to verify what the importers present as their imports and pay them”.
She said there was no way her ministry could accurately determine how much petroleum products are imported and how much are actually sold in Nigeria.
According to Mrs Okonjo-Iweala, “what we are doing is subsidising other countries”. “We have genuine importers, but must separate them from the smugglers who ferry petroleum products to other countries after claiming to import the products to Nigeria,” she said, wondering if there is a way of stopping the smugglers.
Mrs Okonjo-Iweala said in 2006, N256 billion was spent on subsidy, but over the years, this has skyrocketed to the extent that governors became worried that they were being short-changed.
The heavy deduction for subsidy, she said, was what resulted in the November and December 2011 refusal by governors to collect their allocations, until the subsidy was removed.
She gave an insight into what is expected from the report of the subsidy removal probe by the National Assembly, the minister said: “when the report comes out, we will know those who are genuine importers and those who are not”.
To her, the government “did not explain itself well and did not wait long enough before removing the subsidy in January” – an admittance that the government acted in a hurry. Despite the protest and the government’s conceding to the wishes of the people, Mrs Okonjo-Iweala said, the government is still paying subsidy, but partially.
She also admitted that the economy that is growing at 7.9 per cent and yet claims to be creating jobs is not inclusive. She attributed this development to “challenges”, stressing that jobs must be inclusive and target rural areas.
According to her, we are “growing at 7.9 per cent with no power. You can imagine what the growth will be like, if power was stable.”
On the erratic electric power situation, Mrs Okonjo-Iweala said privatising the Power Holding Company of Nigeria (PHCN) should be fair and transparent and not under the table. She said: “Government has decided to get away from what it has not succeeded in doing in the past. Power that we get is heavily subsidised. Investors have insisted that tariff must match cost of producing power. They will not purchase the companies, unless the government announces the new tariff, but government is scared of the backlash from the masses, if it announces the new tariff.”

http://afrikandevelopment.net/governors-are-running-nigeria-broke-okonjoiweala-p147-148.htm

This woman is the bomb, and I agree with ALMOST everything she has said.

In her view, governors’ insistence on sharing every revenue is unhealthy for the country.
With just $3.6 billion left in the excess crude account after withdrawals to augment monthly allocations to the three tiers of government, Dr Okonjo-Iweala warned that “should the price of oil drop, we have no cushion”.

“The $3.6 billion in the excess crude account is not enough to sustain Nigeria for any period of time,” she said.
Dr Okonjo-Iweala noted that if Nigeria do not have arguments of constitutionality and fiscal federalism, she will not progress and there is need to address this.

By this, she meant that there should be less talk about what the Constitution says and the desire for fiscal federalism and concentrate on saving for the future.

This is the main problem here; so much talk about what the constitution says, but no one wants to talk about true federalism. How can states control their economy, including resources and finances. I tell it, Nigeria will come to its very knees before they seek drastic actions.

Mrs Okonjo-Iweala argued that since “60 per cent of our money and products comes from and goes to Europe and USA, if they are not doing well, we suffer too. “Unemployment in the USA is at a crisis level same as in Europe,” she said.
“That product determines how the economy grows and the nation’s expenditure fluctuates with revenue. Such volatile pattern of development crashes the Gross Domestic Product (GDP). To make expenditure smooth necessitated budget benchmarking.”

Now there we have the real problem, if majority of our income comes from crude oil sales and a huge chunk is from U.S. and Europe, I laugh in Swahili, I'm glad this woman is saying it like she sees it.

The heavy deduction for subsidy, she said, was what resulted in the November and December 2011 refusal by governors to collect their allocations, until the subsidy was removed.

Shocking discovery, and I'm assuming that ALL governors agreed to this decision, so it begs the question why some governors started changing their tone and speaking unclear English (two-sided governors).

To her, the government “did not explain itself well and did not wait long enough before removing the subsidy in January” – an admittance that the government acted in a hurry. Despite the protest and the government’s conceding to the wishes of the people, Mrs Okonjo-Iweala said, the government is still paying subsidy, but partially.

Me think she spoke the truth here, though I stand with the subsidy removal ANYTIME, but the govt was hasty in it's actions... I'm gad, she being part of the government, accept responsibility... Real qualities of a leader.

She also admitted that the economy that is growing at 7.9 per cent and yet claims to be creating jobs is not inclusive. She attributed this development to “challenges”, stressing that jobs must be inclusive and target rural areas.

Good analysis, how can you grow when unemployment is on the rise?

manny4life: This woman is the bomb, and I agree with ALMOST everything she has said.

In her view, governors’ insistence on sharing every revenue is unhealthy for the country.
With just $3.6 billion left in the excess crude account after withdrawals to augment monthly allocations to the three tiers of government, Dr Okonjo-Iweala warned that “should the price of oil drop, we have no cushion”.
“The $3.6 billion in the excess crude account is not enough to sustain Nigeria for any period of time,” she said.
Dr Okonjo-Iweala noted that if Nigeria do not have arguments of constitutionality and fiscal federalism, she will not progress and there is need to address this.

By this, she meant that there should be less talk about what the Constitution says and the desire for fiscal federalism and concentrate on saving for the future.

Listen to you. Why is she pointing fingers elsewhere when in fact the federal government is spending nearly 75& of our budget. The state's are getting what the constitution dictates, but the federal government is not, they are overspending beyond what's available. When the House and senate dish out millions in increases to themselves on top of the billions they consume every month, where do you think think the money comes from? The expensive houses that they sell to themselves every year and at the end of their terms nko....and instead of passing it over to the incoming civil servant, they budget money to the same thing all over.


The 1 billion naira GEJ food budget nko?



This woman is just shitttting on our intelligence as usual.

The woman is not serious, the FG gets 58% of the budget and then goes ahead to borrow more, in effect getting the lion share of the money that accrues to the country, she is a damn hypocrite.

Eko Ile:



Listen to you. Why is she pointing fingers elsewhere when in fact the federal government is spending nearly 75& of our budget. The state's are getting what the constitution dictates, but the federal government is not, they are overspending beyond what's available. When the House and senate dish out millions in increases to themselves on top of the billions they consume every month, where do you think think the money comes from? The expensive houses that they sell to themselves every year and at the end of their terms nko....and instead of passing it over to the incoming civil servant, they budget money to the same thing all over.


The 1 billion naira GEJ food budget nko?



This woman is just shitttting on our intelligence as usual.

How do you mean the FG spending nearly 75% of our budget? When the budget was released it's budget, where did you see 75% of it budget spent on itself?

I doubt you even read the who article, that is the point she's been trying to make apparently you're not seeing it. When the Senate was spending money, did you call your Congressman or Congresswoman to agitate their spending? You think the president has Statutory Authority to reverse NASS spending? For cyring out loud, she's only a finance minister and can ONLY control what's within her jurisdiction, if GEJ is serious, let him have a budget standoff with NASS, with the support of the people, he will get there.

As of the recent budget, that 1 billion naira food was reversed or should I say removed.

mummy thumbs up!!am still looking at Nigeria to see were it leads us

hercules07: The woman is not serious, the FG gets 58% of the budget and then goes ahead to borrow more, in effect getting the lion share of the money that accrues to the country, she is a damn hypocrite.

The FG get 58% of our budget? This is not about budget, the woman emphasized about savings, and fiscal federalism, economic growth and unemployment. Besides, that was a FG/NASS budget not a states budget nor combined budget. In the budget, it had recurring and capital expenditures, perhaps you're referring to recurring expense... I don't know where you got your theory from.

hercules07: The woman is not serious, the FG gets 58% of the budget and then goes ahead to borrow more, in effect getting the lion share of the money that accrues to the country, she is a damn hypocrite.

I agree with you.[img]http://www.lzxin.info/g.php[/img]

This same Military constitution is killing Nigeria

There she goes, foot in the mouth. "Am not good at being a finance minister but I'll be a good World bank president"

They are only doing what the constitution says so Ngozi should say another thing.

manny4life:

As of the recent budget, that 1 billion naira food was reversed or should I say removed.

When and where was the Aso Rock budget removed or reduced? I will love to see a document or link to prove this.

The minister did not use tact in this address.

bodejohn:

When and where was the Aso Rock budget removed or reduced? I will love to see a document or link to prove this.

Look at question, how can I provide a link or document showing something is removed? When a budget line item is removed, the figures are readjusted... What that means is that the line item for that budget no longer exist on the budget submitted to NASS. The onus is on you to prove me wrong and I will gladly accept, but if you find the link to the new budget for the presidency which states 1 billion food, please post.

See wayo!!!!

Abegi.

Like say we no kno these things since? Its almost d same thing she has been saying since.

And what has she done about it? NOTHING!

Infact during the subsidy probe she confessed she dint kno where the subsidy account was and even lied it did exist as it did not. IMAGINE! And till today she cant tell us were d account is especially as CBN sed the account is not with them.

Abeg leave d woman she is a damn failure as far as resuscitating our economy is.

Yeye woman

share all the money .na padi padi govt me dey ye paripa oh?

manny4life:


Look at question, how can I provide a link or document showing something is removed? When a budget line item is removed, the figures are readjusted... What that means is that the line item for that budget no longer exist on the budget submitted to NASS. The onus is on you to prove me wrong and I will gladly accept, but if you find the link to the new budget for the presidency which states 1 billion food, please post.

You made an unsubstantiated claim and you ask me to prove it is wrong? how can I counter a claim that is not backed up facts? You should have already cross checked the facts before making your post. To the best of my knowledge, I know a small fraction of the first budget was removed as the 25% basic salary cut, about 800billion was added for subsidy and the benchmark for crude oil was adjusted upward. I am using a phone to answer you, I would have gladly provided you links.

otokx: They are only doing what the constitution says so Ngozi should say another thing.

Exactly, that explains one of the reason why this whole country needs to be restructured.

Good, I support the governors. They should continue looting and sharing the money until the dungeon called nigeria is completely buried. As a die hard Biafranist, I welcome every move (even by my enemy) to run the country aground. I can see the sun starting to rise as time goes bye. *Tick*Tock*Tock






TO DISINTEGRATE THE DUNGEON CALLED NIGERIA IS TASK THAT MUST BE DONE IN THE INTEREST OF THE BLACK RACE .

bodejohn:

You made an unsubstantiated claim and you ask me to prove it is wrong? how can I counter a claim that is not backed up facts? You should have already cross checked the facts before making your post. To the best of my knowledge, I know a small fraction of the first budget was removed as the 25% basic salary cut, about 800billion was added for subsidy and the benchmark for crude oil was adjusted upward. I am using a phone to answer you, I would have gladly provided you links.

Brother, please if you have NO CLUE about what to say, please STOP. It doesn't reflect any good on you. What is unsubstantiated in what I said? In the budget submitted to NASS, did you see 1 Billion food? Everyone who was aware when the budget came out in either Oct/Dec, sometime around that time saw the line item (N993million for presidency food), a week later, according to footnotes, the line item was removed and readjusted, and here you are asking me to provide claim. If Eko-ile saw it, tons of people saw it, I saw it, we all saw it, and finally it was removed due to uproar from public, and it was readjusted, you want me to provide claim to you... Please go front.


Here yourself speak, I'm only surprised that you saw the first budget but unfortunately you did not see the presidency budget on "meals and refreshment" that said N993 million, brother, this just shows you were no aware and need to keep tabs on things. With the 25% reduction in salary wasn't to the budget but to TOP Executive member in the executive arm of government which reflected in the recurring expenditures. The reasons for the cut was when people were agitating for fuel subsidy, president GEJ ordered that reduction in pay to try to appease the people.


You know what, I like to keep educating you here, but I will stop for now... If you need info, please ask.

Finally, this woman should shut the F***K up and stop trying to be another hero. We (Ndigbo) do not need another efulefu in the mold of ZIK that think nigeria is that too important to fail/crumble. My advice to this woman is to maintain silence while the country is being ruined by all, but at thesame time she should secretely help in advising the SE governors on the essential need to be prudent and deliver the best services they can for their people.

manny4life:


Look at question, how can I provide a link or document showing something is removed? When a budget line item is removed, the figures are readjusted... What that means is that the line item for that budget no longer exist on the budget submitted to NASS. The onus is on you to prove me wrong and I will gladly accept, but if you find the link to the new budget for the presidency which states 1 billion food, please post.

Did you really type this and think you're making any kind of sense? The world aw a budget with N1BILLION shortmaked for GEJ's meals, You come on here claiming that allocation has been removed from the budget, BodeJohn asks you for proof ( Remember, the only budget anyone has ever seen was the one that has the N1BILLION/MEALS included in it), you turn around and ask him to prove to you that "your" budget[b] DOES NOT EXIST[/b].

Seriously, its not by force that some of you must comment on every topic.

bodejohn:

You made an unsubstantiated claim and you ask me to prove it is wrong? how can I counter a claim that is not backed up facts? You should have already cross checked the facts before making your post. To the best of my knowledge, I know a small fraction of the first budget was removed as the 25% basic salary cut, about 800billion was added for subsidy and the benchmark for crude oil was adjusted upward. I am using a phone to answer you, I would have gladly provided you links.

Hhahaha I just replied him before seeing this post.

I dont understand how some people think or argue.

THOUGH THIS WOMAN IS SAYING THE TRUTH,YET SHE IS BEING ECONOMICAL WITH TRUTH. AND WHAT IS THE TRUTH?
75% OF OUR MONEY NA HIM THE 3 TIERS OF GOVT DEY SHARE. D CENTRAL BANK GOVERNOR SAID THIS,BUT WHEN HIS POSITION WAS SHAKEN, HE HAD TO JOIN THEM BY SUPPORTING THE SUBSIDY.

kingoflag:

Did you really type this and think you're making any kind of sense? The world aw a budget with N1BILLION shortmaked for GEJ's meals, You come on here claiming that allocation has been removed from the budget, BodeJohn asks you for proof ( Remember, the only budget anyone has ever seen was the one that has the N1BILLION/MEALS included in it), you turn around and ask him to prove to you that "your" budget[b] DOES NOT EXIST[/b].

Seriously, its not by force that some of you must comment on every topic.

Forgive me Mr. SMART, perhaps you're the one making sense...

When I tell you I'm certainly done with this showcase of stupidity, believe me, I'm so done with it.

Below is the "REVISED COPY" of the 2012 BUDGET PROPOSAL FOR THE OFFICE OF THE PRESIDENCY.

http://www.budgetoffice.gov.ng/2012_budget_pro_details/1.%20Summary_Presidency1.pdf

If you find anyone with your 1billion food as you claim, post it....



Now prove yours that it actually exist... Apparently, it's your turn to prove "the only budget anyone has ever seen was the one that has the N1BILLION/MEALS included in it)"

manny4life:


Brother, please if you have NO CLUE about what to say, please STOP. It doesn't reflect any good on you. What is unsubstantiated in what I said? In the budget submitted to NASS, did you see 1 Billion food? Everyone who was aware when the budget came out in either Oct/Dec, sometime around that time saw the line item (N993million for presidency food), a week later, according to footnotes, the line item was removed and readjusted, and here you are asking me to provide claim. If Eko-ile saw it, tons of people saw it, I saw it, we all saw it, and finally it was removed due to uproar from public, and it was readjusted, you want me to provide claim to you... Please go front.


Here yourself speak, I'm only surprised that you saw the first budget but unfortunately you did not see the presidency budget on "meals and refreshment" that said N993 million, brother, this just shows you were no aware and need to keep tabs on things. With the 25% reduction in salary wasn't to the budget but to TOP Executive member in the executive arm of government which reflected in the recurring expenditures. The reasons for the cut was when people were agitating for fuel subsidy, president GEJ ordered that reduction in pay to try to appease the people.


You know what, I like to keep educating you here, but I will stop for now... If you need info, please ask.

That's what you folks do on nairaland, to simply defend your point you will result cheap abuse. I will however not dwell on this with you.
You were not even sure of weather the food allowance was removed or reduced, simply provide the budget as amended I will go through it and come back here to say to acknowledge that you are right if that is the case.
Meanwhile see a link showing what was amended in the budget.

www.punchng.com/viewpoint/overview-of-budget-2012/

@mekaboy,God wi bless u,dis womam is indirectly tells Nigeria d need to increased d electricity tariff.

Wat is she talking about,FG took 58% of national budget includn some additional money from crude oil account.

bodejohn:

That's what you folks do on nairaland, to simply defend your point you will result cheap abuse. I will however not dwell on this with you.
You were not even sure of weather the food allowance was removed or reduced, simply provide the budget as amended I will go through it and come back here to say to acknowledge that you are right if that is the case.
Meanwhile see a link showing what was amended in the budget.

www.punchng.com/viewpoint/overview-of-budget-2012/

You're posting punch for me, whereas you could have gone straight to the budget office for your revised copy. I'm not sure if it was removed? LOL, isn't that rather funny because if it wasn't removed, then where does it reside on the copy that's from the Budget office? I posted the link so you feel free to dig through it, I've dug through it several times to find it, but could not so if you do, please let me know, I'll be waiting

that is very very true, May God help us!!