Beaf:

^
Your logic is fraudulent and meant to decieve the ignorant and the foolish only. If you believe the above though, then you really have problems.
GEJ has no power of the sharing formula. It is enshrined in the constitution.

Your states produce nothing, and when your governors and LG folk go on their begging trip, fools like you people scream about GEJ. Get your state to generate revenue locally, that would be a first step and a very sensible one.

As long as the constitution says money is to be shared that way, so it will. When people like me preach true federalism, ignorant folk like you better sit down and listen; if you had done that in the past, you wouldn't be saying daft things now.

Revenue allocation formula is not enshrined in the constitution otherwise tell us the section. It is supposed to be an Act of Parliament but the last Act was passed in 1982 under Shagari. New Act could not be passed under Obasanjo because of disagreement between the presidency, Revenue Allocaton Commission and the National Assembly on the procedure to be adopted in sending the bill to the NA. Obj just issued a presidential proclamation adjusting the 1982 allocation to incorporate 13% derivation and the supreme court judgement then which rendered invalid some aspects of 1982 Act

The Minister was not really correct in refering to ECA as budget-financing. Was it included as source of funding the budget by the national assembly? It would have formed part of the federal allocation if that were the case? Under Obj, states must submit specific projects to the office of president - (special duties) before the president would authorise that  allocation be made from ECA. ( I am not saying that such guaranteed that the funds were not eventually wasted but there was a benchmark)

Furthermore. the minister should know that the NA only extended the 2010 budget of the fed govt to March 2011 not those of states because NA cannot legislate for states on appropriation matters. So if state houses of assembly have not extended their own budget period, how will the governors spend the allocation made  on the last day of the year which expired 12 midnight on 31 December. How will they roll it over into 2011  budget which has already been presented to the house of assembly?

klas:

Revenue allocation formula is not enshrined in the constitution otherwise tell us the section. It is supposed to be an Act of Parliament but the last Act was passed in 1982 under Shagari. New Act could not be passed under Obasanjo because of disagreement between the presidency, Revenue Allocaton Commission and the National Assembly on the procedure to be adopted in sending the bill to the NA. Obj just issued a presidential proclamation adjusting the 1982 allocation to incorporate 13% derivation and the supreme court judgement then which rendered invalid some aspects of 1982 Act

The Minister was not really correct in refering to ECA as budget-financing. Was it included as source of funding the budget by the national assembly? It would have formed part of the federal allocation if that were the case? Under Obj, states must submit specific projects to the office of president - (special duties) before the president would authorise that  allocation be made from ECA. ( I am not saying that such guaranteed that the funds were not eventually wasted but there was a benchmark)

Furthermore. the minister should know that the NA only extended the 2010 budget of the fed govt to March 2011 not those of states because NA cannot legislate for states on appropriation matters. So if state houses of assembly have not extended their own budget period, how will the governors spend the allocation made  on the last day of the year which expired 12 midnight on 31 December. How will they roll it over into 2011  budget which has already been presented to the house of assembly?

are you sure about this? i was under the impression that it's the RMAFC that determines the sharing formula to be used, i know a new one was determined during OBJs tenure. I seem to remember it being tinkered with more than once sef.

^^^ Yes very sure.

www.nairaland.com/nigeria/topic-341792.0.html

or

www.allafrica.com/stories/201003240343.html   Revenue Allocation Formula Illegal - Bankole

or

http://234next.com/csp/cms/sites/Next/News/National/5484356-147/Revenue_Allocation_bill_is_missing_at.csp

The commission submitted its first revenue allocation proposal to the National Assembly, giving the Federal Government 41.3 percent, states (31 percent), local governments (16 percent) and a total of 11.7 percent for special funds, consisting 1.2 percent allocation to the Federal Capital Territory (FCT); one percent each to ecology and national reserve fund, agriculture/solid mineral fund, and 1.5 percent and Basic Education and Skill Acquisition (BESA), seven percent.

Work on the proposal halted in the National Assembly for about eight months, until April 2002, when the Supreme Court delivered its verdict on the resource control suit initiated by Akwa Ibom State on behalf of the 36 state governments, which nullified the special fund in the then existing formula.

In spite of the ruling, Mr. Obasanjo, through an executive order in May 2002, appropriated the management of items on the special fund to the Federal Government, giving it control of 56 percent of the Federation Account, while the states retained 24 percent and local governments 20 percent.

Following the outcry from the other tiers of government, the Federal Government, through another executive order in July 2002, conceded 1.32 percent from its allocation, to keep a share of 54.68 percent, while 24.74 percent went to the states and 20.60 percent to the local governments.

Another attempt

In January 2003, the revenue allocation, in compliance with the ruling of the Supreme Court, drafted and submitted to the National Assembly a new formula for ratification, which gave the Federal Government 46.63 percent share of the Federation Account, states 33 percent and local governments 20.37 percent. But again, the Obasanjo administration, apparently motivated by the desire for the Federal Government to control the lion share of the Federation Account, in November 2003, unilaterally asked the National Assembly to withdraw the proposed formula by RMAFC, alleging that fake versions of the recommendations were in circulation.

In May 2004, Mr Obasanjo issued executive orders derived from section 315 (2) to modify the formula giving 52.68 percent, states 26.72 and councils 20.60 percent. The former President was said to have appropriated the 7.5 percent of the allocation for the Federal Government. Mr Tukur has always criticized the attitude of leaders to the revenue formula.

Lol. .they have made us believe Nigeria is no longer making any revenue from oil, hence the reason they go to the excess crude a/c.

I dey laugh o!. .oil price is currently at $92 alot higher than the bench mark for this current budget, so why is the ECA not increasing. .lol

rather we keep sharing every quarter, like thats the only source of the country's income, now that it has finished they must be satisfied

GEJ is tackling the economy in a wrong way. .he has crippled the private sector and keeps believing govt spending alone can stimulate the economy. .i laugh in swahili

Question i want answered is Why are we still sharing out of this Account?? while oil is at $92/barrel and the country is still generating income from oil daily!

What makes it "secretly". Atiku's nl soldier

Nsiman:

What makes it "secretly". Atiku's nl soldier

What are they doing sharing $1b on the night of 31st December?

What press conferences did the President give to the Nation to inform them of the need for this spending.

All they did is shared the money and deployed a Minister of State to go on a low key press conference to inform the country of the shared money.

They informed the country in retrospect after reaching a decision to share our commonwealth. If you do not see something wrong with that then our country is clearly in trouble.

Pls God to open ur mind

Who distribute money on the last day of the year

Capital project or not this is for 2010 budget, why hasnt the money been released since and unlike previous years when ministries are asked to refund/return all unspent monies under this govt everything has been allowed to leak

_{the Budget deadline for some departments were extend not all}

Every time this Excess Crude Account is shared in 2010 it is always under pressure

2 minutes after taking over this president basically rushed to share ECA

@ dis guy, nigeria's annual budget ends in march, ok?

Now that they have finished the fund, what's next? Start borrowing?

I weep for Nigeria. Obj left $27B in that account and less than 4yrs after, it's all gone with nothing to show for it.

OAM4J:

Now that they have finished the fund, what's next? Start borrowing?

I weep for Nigeria. Obj left $27B in that account and less than 4yrs after, it's all gone with nothing to show for it.

there's the sovereign wealth fund they're trying to pass now. . .

OAM4J:

Now that they have finished the fund, what's next? Start borrowing?

I weep for Nigeria. Obj left $27B in that account and less than 4yrs after, it's all gone with nothing to show for it.

When did the ECA ever reach $27 billion? We are talking about the ECA here not the Foreign Reserves. Two completely different things. I find it hard to believe it would even go up to $20 billion as reported by allafrica.com.

Although the punch is reporting it as $20 billion in 2007.
http://www.punchng.com/Articl.aspx?theartic=Art2011010313135115

Some form of confusion inside here

Atiku and his leutenants has fake info for us to argue and fight.

Like it or not the current administration is excessive in its spending!

time to begin borrowing. .I wonder how much debt we will be in after GEJ is done 2015

Nsiman:

@ dis guy, nigeria's annual budget ends in march, ok?

No. Nigeria budget cycle runs January 1 to December 31. However the constitution allows the government to spend half of what it spent in previous year on recurrent expenditure up to June 30 if the budget for the current year had not been passed by June 30 of that year. Note that this relate to only recurrent expenditure and it is not an extension per-se but a sort of advance drawdown to keep government running before the budget is passed.

National Assembly in last and this years extended the capital (not recurrent) to March 31 of the following year. This action is apparently on 'doctrine of necessity' because it has no direct basis in the constitution or the appropriation act. Note that the extension was done by a motion and not an act of parliament which the executive would have dismissed as non-binding if not that it serves their purpose as well.

@ klas, pls when was 2010's supplementary budget passed/approved?

With this windfall, is there any reason Nigerian that expects the political love peddlers who pass as State Governors to support any other presidential candidate than GEJ?

Excuse me. How is this "Secret"?

GEJ is doing everything humanly possible to appease the governors for their support in the
presidential election.

He is not thinking of corruption or the unconstitutionality of spending without the National Assembly's
consent. All he has on his mind now is how he is going to retain the presidency after the election.

Did you guys not hear that GEJ offered to sell the official govt mansions to Senator Mark and
Speaker Bankole ? Why ? When we elect new leaders in the Senate and House of Reps, where are they going to stay ?

Again, GEJ is all about appeasing all for the 2011 presidential elections.

What baffles me is this - How can anyone in their right mind
not fault GEJ for the depletion of the ECA fund within a year of being president??

I tire for Nigeria

Nsiman:

@ klas, pls when was 2010's supplementary budget passed/approved?

there were 3 supplementary budgets in 2010. Which of them?

However, please note that supplementary budget(s) do not work to extend the financial year which remains January to December even if the last supplementary budget is passed on 31 December.

You are also invited to note (if I may use civil service parlance) that in most cases, supplementary budget is just a formal ratification of expenditure already made by the executive ( with informal anticipatory agreement of the leadership of the legislative houses) but which were not included in original buget. They are just to keep the record clean to avoid deficit in vote-heads just like virements.