And you think this people will make Heaven, No way! Bunch of Hipocrites.

Listen to Fayemi, the chairman of the governor's forum saying that Nigeria practices a two-tier system of government, where the local government is unknown. These are the calibre of leaders we have...
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Revenue should be shared in the currency in which they are collected.

JosEast:
What is wrong with using naira?

because they get the naira equivalent at N305 for every dollar and they know they can get better N360. However most likely, these governors will simply use the dollars for round tripping and declare the official rate.

lawani:
Revenue should be shared in the currency in which they are collected.

revenue should be shared in the country's currency, we are a soveriegn country, why have naira if even govt is conducting business in dollars? . what the country shouldnt do is have multiple rates that are open to abuse.

ednut1:
Nigeria is all about sharing. one day there would be nothing to share

They will be sharing the citizens

Dreal1247:
But Dollars climbed to #520.00. Why then is it now at #360.00 that they are demanding to be able paid in dollars? It's like something is fishy. But we shall understand with time.

My brother I tire o. But there's a policy now that restrict anyone to pay in dollars in cash into domiciliary account that is what is fishing

Fayemi restates opposition to NFIU’s directive to banks on joint accounts



Francis Ndubuisi in Abuja and Ojo Maduekwe in Lagos



Worried by the intractable problem of fuel subsidy, which has affected the amount of money available for distribution among the three tiers of government, governors of the 36 states of the federation are mulling presenting to the federal government a demand for their shares and those of the local governments from the Federation Account to be given to them in dollars.

One of the governors confided in THISDAY at the weekend in Abuja that their efforts to resolve the issue so far has failed to yield any positive result due to pushback from some federal government officials, who believed a full deregulation of the downstream sector of the oil industry, which would lead to uncapping petrol price would be injurious to the poor, whom President Muhammadu Buhari has vowed to protect from the vulnerabilities of the nation’s economy.

The governors upcoming push came just as Nigerian Governors’ Forum (NGF) Chairman and Ekiti State Governor, Dr. Kayode Fayemi, criticised the Nigerian Financial Intelligence Unit (NFIU) for writing to banks to restrict transactions from joint accounts between states and local governments.

Expressing concern on the deleterious effects of fuel subsidy on states’ finances, the source said given the negative reactions so far from the federal government on their advocacy for fuel subsidy removal, states have no choice but to think out a new strategy to deal with the knotty issue.

According to him, states would get better value for their shares from the Federation Account if federally-collected revenue, such as oil is distributed in the currency they are collected.

Data from the Central Bank of Nigeria (CBN) showed that in 2018, Nigeria netted a total of N5.54 trillion from oil revenue. That is about $18.1 billion when converted at the official exchange rate of N305 to $1.

A breakdown of the figure showed that the N5.54 trillion revenue was earned through three major oil revenue sources, which were crude oil/gas sales, petroleum profit tax/royalties and others.

Also, the immediate past Managing Director, International Monetary Fund (IMF), Ms. Christine Lagarde, while calling on the federal government to remove fuel subsidy during the joint annual spring meetings with the World Bank in Washington DC last April, had said that Nigeria had spent $5. 2 trillion from 2015 till then on fuel subsidies and the consequences thereof.

Between January and November 2018, the Nigerian National Petroleum Corporation (NNPC) in a document presented to the Federation Account Allocation Committee (FAAC) in December 2018, said it incurred N623.16 billion in 11 months under its under recovery programme, the new name it gave fuel subsidy to beat the lack of legislative approval for the expenditure as demanded by law.

On how feasible the idea of states and local governments being paid their shares of revenue from the Federation Account in dollars is, given the fact that not all in the money that come to the central basket is earned in the United States’ currency, the governor said the idea was at an infant stage but they would get around to working out the modalities to make it achievable.
He added that many states are in financial straits due to the fluctuation in earnings from the Federation Account, occasioned by oil price volatility and fuel subsidy as well as challenges of boosting internally-generated revenue.

The poor financial states of the second tier of government, he said, had impaired the ability of governors to deliver on their electoral promises and to providing other services to improve the welfare of the people.


Fayemi Restates Opposition to NFIU’s Directive to Banks on Joint Accounts

Meanwhile, Fayemi yesterday asked the Nigerian Financial Intelligence Unit (NFIU) to steer clear from the State Joint Local Government Accounts (SJLGAs) operated by states and local governments.

Fayemi, while fielding questions from journalists in Lagos, faulted the directive by NFIU barring banks from allowing transactions from the SJLGAs without monies first reaching the LGAs account.

The governor said the directive was not backed by the 1999 Constitution.
He described Nigeria’s federalism as a two-tier system and not the widely held and generally accepted view of a three-tier federation, comprising federal, state and local governments.
He said there was no law in Nigeria to give local governments autonomy from the states.
The NFIU in a directive in May, had barred banks, governors, financial institutions, public officers and other stakeholders from tampering with local governments’ statutory allocations from the Federation Account.

It also threatened to deal with individuals and companies abetting the diversion of local government funds with local and international sanctions.

In a new guidelines it released, which became effective from June 1, NFIU said it would restore the financial autonomy for the third tier of government, adding that each local government is now free to spend its funds judiciously without taking directives from governors, “who have hijacked the monthly allocations of the third tier of government under the guise of State Joint Local Government Accounts.”

But Fayemi described the NFIU’s position as illegal, saying the NGF’s position on the directive to banks was informed by the understanding of the position of the constitution on the issue of local government autonomy.

Describing the process needed to give local governments autonomy, Fayemi said though attempts had been made to amend the constitution, none has ever got the consent of 24 out of 36 Houses of Assembly to make it legal, in accordance with the provisions of the 1999 Constitution.

Fayemi said: “Nigeria is a two-tier federation. It’s not a three-tier federation. I read in the media all the time of people talking about three-tier. It’s a distortion. It’s an aberration that we (states) even need to go to Abuja for approval to create local governments.

“If you want to have 200 local governments, it is your business; you and your people in your states should figure it out. It should not be the business of Abuja. That for me is a surreptitious unitarism.”

Also citing Section 162 of the 1999 Constitution, Fayemi queried the business of the NFIU with states and local governments’ joint accounts.
He cautioned the agency to comply with those standards on combating money laundering and not dabble into matters that are both constitutional and beyond its purview.

The governor added that local governments are not reporting entities and are therefore not under the NFIU in the manner contemplated by the agency’s so-called guidelines.

“You cannot go behind to do what the constitution does not allow you to do and that was what informed our position at the NGF over the ridiculous instruction to banks. You know that you cannot confront us; you are now going to bankers. What is the business of the banks with the accounts maintained by local government as long as the accounts are funded and the proper persons run the accounts?”

“When you read the NFIU law, the NFIU monitors what is going on in the banking system, internationally and locally. If you have a specific case of money laundering, by all means bring it up; but you can’t have a general rule to address a unique problem. Because you say you want to fight money laundering, you’ll now say that states cannot run joint accounts. Joint account is in the constitution; Section 162 is very clear,” the governor said.



https://www.thisdaylive.com/index.php/2019/10/14/governors-to-demand-states-share-of-federation-account-in-dollars/

COUNTRY OF SHARE ! SHARE !

The political elites only believe in taking and never put back.

If only they have the supernatural powers they will want to share the fresh air so that the rest of us will not have air to breath.

JosEast:
What is wrong with using naira?

So it's can be potable when looting the money out of the country ......useless people

ednut1:
Nigeria is all about sharing. one day there would be nothing to share

They would borrow to share...but whats really happening with our refineries mr intergrity promised to fix?

This is great news...the great wats finally ends......see hw the ira will gain very srious value against the dollar...

I cant beleive ths..at last...am so happy....

Thank you professor les leba.......

There are the one sponsoring Terrorism so they can easily pay directly without exchanging naira to dollar again

This country is shit hole for real

How do you expect Britain to be expecting allocations in dollars

All ya asking why they want to be paid in dollars don't know that these guys(governors) are smart

They need it in dollars so that they can sell in black market and not the official exchange rate which is smaller, thereby, getting more value nah.

Nothing last forever, one day, this cake go finish. Then, they can start reasoning like normal humans.

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JosEast:
What is wrong with using naira?

Dollars are more easy to be stacked in the pockets. Just like in the case of my state's governor.

Racoon:
Abeg what is The unit of currency in Nigeria today that these overfed Buffons want to be collecting state allocation in dollars? The Governors clique is one of the bane of our national development.

Bros, the country earns in dollar, we are an import dependent country, meaning that raw materials for capital expenditures is priced in dollar. They give the governors naira, any slight fluctuations in the exchange rate devalues the allocation of a state, and the CBN makes profit from those currency fluctuations not the state.
Secondly as a result of our import dependence, contractors have to go source forex, the value of a project will depend on how much the contractor buys Forex, again CBN is smiling and the state is at loss.

Dreal1247:
But Dollars climbed to #520.00. Why then is it now at #360.00 that they are demanding to be able paid in dollars? It's like something is fishy. But we shall understand with time.

Governors propose something and you are asking if something fishy is behind such move.

aybabz101:
I don't know how these fraudsters called governors think. Is dollar the legal tender of the country? How do u expect the federal Government to pay the state government with foreign money?......

If u need dollars? improve the economy of ur states so dat ur States can trade directly with the international community. States are reasonably autonomous and there is nothing disturbing u lazy ass governors.

They want to be embezzling in dollars toooo....awon oloshi...

so where is the fg money coming from? Is it not from state. D fg is d criminal here. They should allow all states manage all they have period

It is just this day that I know the man called Dr. Fayemi Kayode is a coward! For whichever reason, including money sharing, there are three tiers of government in this country called Nigeria. Something I learnt years ago in my secondary school. Which school did the Doctor attend to receive the tutelage that there are only two tiers of government in Nigeria? Away from that, what business does the state houses of assemblies have to do with the autonomy of local governments?

Plz dy shouldnt agrre to FG'sppleas...they should insist on dollar allocation

I understand what the govs are trying to do. you paid example $10 you peg the rate 305 and 360 with a deficit #55. simply give them the $10 they can exchange to 3600 not 3050. last last buhari na scam.

I think I will ask my boss to also payment in dollars.

Who no like better thing?

kingigwe1:
so where is the fg money coming from? Is it not from state. D fg is d criminal here. They should allow all states manage all they have period

According to the 1999 constitution, the FG controls only natural resources of the federation called Nigeria from which the FG allocates a specified amount to each states based on the quota system.

from my knowledge, there are other means a state can earn foreign exchange apart from natural resources which is controlled by FG.

Islie:





Fayemi restates opposition to NFIU’s directive to banks on joint accounts







https://www.thisdaylive.com/index.php/2019/10/14/governors-to-demand-states-share-of-federation-account-in-dollars/

Nigerian Governors Have Impact In What Is Currently Happening To Nigeria As A Whole.
Not Only The FG

No. That will create different markets and Exchanges for Forex. CBN will be unable to control FX.
Also Naira is Nigeria's Sovereignty. It's immoral and uneconomic to circulate Two Currencies simultaneously in a Country. It's a way to misappropriate Funds.

PoliticalWitch:



Why doesn't this government wake up to the fact that oil subsidy is harming our economy?

Protect which poor?? The same poor that are being hurt by the economic problems being induced by underrecovvery or subsidy.

Oil subsidy must go., Let's save at least 500bn naira a year. Time we woke up and took the right decisions, or we keep on taking loans.


Modified

In plain English, what the article is saying is simple

1. It is becoming increasingly difficult to maintain the fuel price at N145 per liter

2.People are not investing in new refinereis (apart from Dangote) because no one is going to make fuel at N165 and then sell it at N137 to depot.

3.Oil is at $58 , and we need it at $139 per barrel as at 2017 to maintain a balanced budget. We are running out of money (and the looterocrats in this government are busy as usual)

4.Because of this, we so don't have enough cash to share for states

5. So, if you want Fayemi and his gang to stop asking for their allocation in dollars....REMOVE SUBSIDY. We can't sustain it any longer. Sorry folks.

I hope dis is not tactius
The question to ask before you engage in the propaganda of oil subsidy is evil is what the govs stand to gain from getting their allocation in dollars and how that affects the economy. Forget the hogwash of oil subsidy is affecting their finances. Nigeria is running multiple exchange rate with the official rate being 305 to $1. If these give are asking for hard currency, it means they intend taking advantage of the multiple rates to make extra buck for themselves which will in turn further crash the value of the naira. Imagine also a situation where a gov gunning for reelection is using dollars to bribe inec and other election costs. In other words, this plan may be to empower there govs financially against 2023. That being said, subsidy is not the reason why govs are not performing. Instead of harping on subsidy, why don't they advocate restructuring or better still, raise igrs. It's simple. Our politicians don't like to do the hard work. They just want free money

aybabz101:



According to the 1999 constitution, the FG controls only natural resources of the federation called Nigeria from which the FG allocates a specified amount to each states based on the quota system.

from my knowledge, there are other means a state can earn foreign exchange apart from natural resources which is controlled by FG.

so when someone control your natural resources u don't know u re finish