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Stats: 2,334,514 members, 5,167,457 topics. Date: Monday, 23 September 2019 at 08:34 AM

FG To Start Deducting N614 Billion From States This Month - Politics (2) - Nairaland

Nairaland Forum / Nairaland / General / Politics / FG To Start Deducting N614 Billion From States This Month (20568 Views)

Buhari Govt Moves To Recover N614 Billion From 35 States / Presidential Panel Announces Recovery Of N3 Billion From Two Civil Servants / APC Makes N12.6 Billion From The Sale Of Forms (2) (3) (4)

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Re: FG To Start Deducting N614 Billion From States This Month by CarGuideNG: 4:33pm On Sep 10
Re: FG To Start Deducting N614 Billion From States This Month by jkendy(m): 4:33pm On Sep 10
The question is, the deduction is for what
Re: FG To Start Deducting N614 Billion From States This Month by dochenaj: 4:34pm On Sep 10
This is why any new state government that is not privy to how the loan was taken and used by the past administration should sue that administration.

Governance should be about continuity and for that to happen, there should be accountability of the past actions.

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Re: FG To Start Deducting N614 Billion From States This Month by eagleeye2: 4:34pm On Sep 10
That means minimum wage is ON YOUR OWN.
Re: FG To Start Deducting N614 Billion From States This Month by Perufy(m): 4:36pm On Sep 10
SOUTHAFRICAN-NIGERIANS are on their way back to join in the tussle.....some people's parents won't have salary for the yuletide season...I smell red smoke this month end...mean while there is a way out......
......
......
let the judiciary do the needful tomorrow
Re: FG To Start Deducting N614 Billion From States This Month by horsepower101: 4:36pm On Sep 10
Now we will see how those people that like to brag about high IGR will cope. We all know that they are the ones that always run for bailout funds.

1 Like

Re: FG To Start Deducting N614 Billion From States This Month by webngnews: 4:38pm On Sep 10
You gave them you deduct from them lol
Re: FG To Start Deducting N614 Billion From States This Month by wink2015: 4:38pm On Sep 10
Ecstasy154:
…to slash N1.16 trn from Capital Expenditure in 2020

… 2020-2022 to be challenging, FG

The federal government will start recovering the N614 billion budget support facility from state governments this month.

Minister of Finance Mrs. Zainab Ahmed made this disclosure in Abuja on Tuesday while presenting the draft 2020 to 2022 Medium Term Expenditure Framework and Fiscal strategy Paper.

Ahmed stated that the states will start getting direct debits from their monthly Federation Account Allocation Committee (FAAC) disbursements.

According to her, “the recovery process for us is to deduct from the FAAC allocation to the states and then we remit to the CBN and we are going to start this remittances by the next FAAC” which will hold in two weeks time.

To show how serious the government is about making the deductions, the finance minister revealed that “there will be no requirement for us to consider the FSP implementation. We do that as a matter of wanting the states to stay on the path of fiscal sustainability but it will not be a condition for the deduction. We will deduct direct at source and remit to the CBN.”

“The N614 billion bailout funds to states is not going to form part of the revenue for funding the budget, it was a loan which was advanced by the CBN and the repayment will be made to the CBN.”

Federal Government last month said, a committee has been put in place to facilitate recovery of N614 billion given to 35 states. 35 states benefited from the facility, and each state is expected to pay back the equivalent of N17.5 billion.

On the N650 billion to the states the minister spoke about, it was a conditional budget support provided by the CBN to help states pay salaries gratuities and pensions. CBN provided N650 billion in loans at 9% with a grace period of two years. The Federal Ministry of Finance helped in disbursements with documented approval by the presidency. That was why the finance minister said the money belongs to the CBN and is going to be paid into CBN account.

With regards to the many incentives and waivers given to investors, the finance minister said “we have too many incentives and too many waivers. But our partners in the trade will not necessarily agree with us. We also agree that there has to be a review of the pioneer status certificate issuance process because the waivers and the incentives are really costing us a lot.”

She however cautioned that government will not just withdraw its decision on granting pioneer status accorded to some investors, adding that “when a decision has been made and approvals have been given, and a private business makes an investment decision based on those incentives, you can’t pull it out overnight. So, there has to be a period within which the commitments that have been made are allowed to exit before you impose new conditions.”

She then added that government is “currently reviewing the quantum of waivers. The idea is to see which one we can begin to pull back and throw away from the pool to reduce the cost on government. But to encourage businesses and to make Nigeria competitive, some of them are essential.”

The federal government has also warned Nigerians to brace up as the 2020 to 2022 fiscal years will be challenging.

Mrs. Zainab Ahmed said the 2020 to 2022 fiscal years will be very challenging with respect to revenue generation and rapid growth in personnel costs.

Ahmed attributed the growth in personnel cost to the creation of new ministries and appointment of additional ministers.

She however assured that government is ready to take firm decisions. To contain rising personnel cost, she disclosed that “any government staff not captured in the Integrated Payroll and Personnel Information System (IPPIS) by October 2019 should forget their salaries.”

From 2020, the budgets of all MDAs and Government Owned Enterprises (GOEs) will now be contained and published in the nation’s annual budget.

The 2020 – 2022 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) outlines Federal Government of Nigeria’s fiscal policies/strategies and macroeconomic projections for 2020 – 2022 and provides the broad framework for the annual budget in line with the Fiscal Responsibility Act (FRA), 2007.

In 2020, the federal government plans to cut a whooping N1.16 trillion off capital expenditure from N2.92 trillion in 2019 to N1.76 trillion in the proposed 2020 budget.
This will then see capital expenditure dropping to 21 per cent of total expenditure in 2020 compared to 32 per cent in the 2019 approved budget.

Mrs Zainab Ahmed said Nigeria is planning to trim its budget for 2020 marginally by 0.19 per cent to N8.90 trillion, as against the N9.16 trillion approved by lawmakers for 2019.

The government approved a 34 and 66 per cents capital/ recurrent expenditure fiscal policy in 2018 and 32 and 68 per cents in the approved 2019 budget.

Details of the medium term expenditure framework (MTEF) and fiscal strategy paper (FSP) 2020-2022 showed that capital expenditure will suffer successive cuts for the three-year period to N1.76 trillion, N1.70 trillion and N1.68 respectively for 2020, 2021 and 2022 despite increases in total expenditure at N8.6 trillion, N8.98 trillion and N9.4 trillion during the same period. Recurrent on the other hand, is expected to increase from N3.41 trillion in 2018 to N4.7 trillion in 2019.

Key Assumptions of the 2020 Budget Framework: Oil Production 2.18 mbpd; Oil Price $55/b; Exchange Rate N305/$; Inflation Rate 10.81%; Nominal Consumption N122.75 trn; N142.96 trn Nominal GDP; and GDP Growth Rate of 2.93%.

A lower benchmark oil price of $55/b (against $60/b for 2019) is assumed considering the expected oil glut in 2020, as well as the need to cushion against unexpected price shock.

There are strong indications of an oversupplied market in 2020. All three of the major forecasters – Organization of the Petroleum Exporting Countries (OPEC), International Energy Association (IEA) and the U.S Energy Information Administration (EIA) generally see non-OPEC production growing by around 2mbpd this year, and by even more next year.

Federal government plans to borrow N1.7 trillion in 2020 of this amount, N850 billion will be domestic borrowing while the balance of N850 billion will be from foreign borrowing.

In addition, federal government has projected a total fiscal deficit of N2.154 trillion with additional funding coming from: privatisation proceeds N126,522,715,909; multi-lateral/Bi-lateral project-tied loans N328,128,150,000.

Sale of government property and Non-Oil asset sales are expected to be nil in 2020.

Total budget for 2020 is put at N9,789,243,849,466. For 2021, N10,110,193,322,738 and in 2022, N10,418,391,196,907.

Zainab Ahmed also warned that the “Africa Continental Free Trade Area (AfCTFA) could create a nightmare situation for the country unless the right policies and actions are implemented expeditiously to improve Nigeria’s economic competitiveness.”

https://thenationonlineng.net/fed-govt-to-start-deducting-n614-bn-from-states-this-month/




NORTHERN NIGERIA SHOULD GO AND FACE MECHANIZED AGRICULTURE AND STOP WAITING FOR CRUDE OIL MONEY.

YOU HAVE LARGE EXPANSE OF LAND FOR AGRICULTURE.

Start your cattle ranching, and crop based agriculture and start making money.

The era of waiting for crude oil money is fastly fading out.

1 Like

Re: FG To Start Deducting N614 Billion From States This Month by Lexusgs430: 4:39pm On Sep 10
Trouble looms ahead........
Re: FG To Start Deducting N614 Billion From States This Month by nauto10: 4:39pm On Sep 10
Elections is over
Re: FG To Start Deducting N614 Billion From States This Month by EVILFOREST: 4:39pm On Sep 10
Sai BABA.....
Re: FG To Start Deducting N614 Billion From States This Month by Mathiasa(m): 4:39pm On Sep 10
Bello pls how do u intend to run Kogi after the deduction. cry
Re: FG To Start Deducting N614 Billion From States This Month by kabe1: 4:39pm On Sep 10
jkendy:
The question is, the deduction is for what
Mumu, don't you read?

2 Likes

Re: FG To Start Deducting N614 Billion From States This Month by martineverest(m): 4:42pm On Sep 10
aaronson:
Many states owes salaries of state workers suggesting insufficiency in funds allocation yet FG is deducting.

CHEAP DEAL on a Lexus down my siggy.
same states were given funds from Paris debt by refused to pay workers

1 Like

Re: FG To Start Deducting N614 Billion From States This Month by banji1(m): 4:44pm On Sep 10
The report isn't complete without us knowing the indebtedness of each state and how much each debit burden each state will face.

Are you a teacher?
Get FREE access to comprehensive lesson notes/plans for various subjects. Check my signature for details
Re: FG To Start Deducting N614 Billion From States This Month by jkendy(m): 4:45pm On Sep 10
kabe1:

Mumu, don't you read?
grin grin grin Tek am easy nah, e neva reach dat level nah. U dey serious as if di moni go enta ya pocket shuuuuuu
Re: FG To Start Deducting N614 Billion From States This Month by jonesoibe(m): 4:49pm On Sep 10
Ecstasy154:
[b]

“The N614 billion bailout funds to states is not going to form part of the revenue for funding the budget, it was a loan which was advanced by the CBN and the repayment will be made to the CBN.”





Benue people don suffer be that o.
State governors should be queried and held accountable but sadly, none if these would happen
Re: FG To Start Deducting N614 Billion From States This Month by madenigga(m): 4:50pm On Sep 10
If I was a state governor, and my predecessor took this money and did nothing with it but embezzled it, I would frustrate him to the core

1 Like

Re: FG To Start Deducting N614 Billion From States This Month by allthingsgood: 4:50pm On Sep 10
aaronson:
Many states owes salaries of state workers suggesting insufficiency in funds allocation yet FG is deducting.

CHEAP DEAL on a Lexus down my siggy.


What is wrong with u? Can't u read? Where in the world do u take a loan and then expect not to pay back

1 Like

Re: FG To Start Deducting N614 Billion From States This Month by madenigga(m): 4:51pm On Sep 10
Mathiasa:
Bello pls how do u intend to run Kogi after the deduction. cry
They would look for another source and borrow the money
Re: FG To Start Deducting N614 Billion From States This Month by allthingsgood: 4:51pm On Sep 10
madenigga:
If I was a state governor, and my predecessor took this money and did nothing with it but embezzled it, I would frustrate him to the core

There's no predecessor. All the governor's that took d loan are still there
Re: FG To Start Deducting N614 Billion From States This Month by Ttipsy(m): 4:54pm On Sep 10
big lie
they want to use it for Ruga!!
why not allow states to manage their economies??
it's obvious Abuja wants everything.
Nonsense
Re: FG To Start Deducting N614 Billion From States This Month by madenigga(m): 4:56pm On Sep 10
"Mrs. Zainab Ahmed said the 2020 to 2022 fiscal years will be very challenging with respect to revenue generation and rapid growth in personnel costs."

This statement means the FG is about to increase our tax
Re: FG To Start Deducting N614 Billion From States This Month by overall90: 4:56pm On Sep 10
so tha bail out was a loan from CBN shocked

but all this while it was being bandied as one of Buhari's first tenure achievement.
Re: FG To Start Deducting N614 Billion From States This Month by madenigga(m): 4:57pm On Sep 10
allthingsgood:


There's no predecessor. All the governor's that took d loan are still there
Sanwo Olu, Ihedioha, if I was to mention a few
Re: FG To Start Deducting N614 Billion From States This Month by BeijinDossier: 5:00pm On Sep 10
I pity for Imo state
Re: FG To Start Deducting N614 Billion From States This Month by blueghost(m): 5:02pm On Sep 10
Buckle up it's gonna be a bumpy ride
Re: FG To Start Deducting N614 Billion From States This Month by Lachynos2k2(m): 5:02pm On Sep 10
Finally finally,it's official, I dey pack my load commot from abia state kpatakpata

1 Like

Re: FG To Start Deducting N614 Billion From States This Month by Area4Area: 5:04pm On Sep 10
byrron:
Pay back time for loaned out money which obviously still didn't serve the purpose for which the loan was aquired ab initio.
This is the most painful part of the story, very saddening
Re: FG To Start Deducting N614 Billion From States This Month by Banmeallday: 5:05pm On Sep 10
This must be IPOB fault. They should never had called the Nigger Area/Nigeria a zoo. This is Trump’s fault, he should never had called the Niggers in the Nigger Area people from a shythole, or Putin that referred to them as a cemetery......


The Fulani dont know how to run a country nor economy and are against Western education.....Now see the results. The Chief Justice has no certificate, the President no certificate, and see them....


Fools

1 Like

Re: FG To Start Deducting N614 Billion From States This Month by fortran12: 5:05pm On Sep 10
Houseofglam7:
Someone send a Mayday message already!!!!
The entity called Nigeria is sinking.
Cos they are forcing state governments to be proactive?
Re: FG To Start Deducting N614 Billion From States This Month by Johnsghana(m): 5:08pm On Sep 10
Many states have arable land, human resources, airports, tourist sites, etc that they can develop to earn more revenue. However, myopia and greed will not allow them to look for other revenue sources. Rather they let their citizens go to other African countries where they're treated with disdain and murdered.

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