Payment of salaries by about 33 states of the federation is uncertain as the decision of the federal government to debit local government accounts...

By Sunday Michael Ogwu And Chris Agabi
Payment of salaries by about 33 states of the federation is uncertain as the decision of the federal government to debit local government accounts in commencement of a payment of $418 million (N172 billion) to private consultants on Paris Cub refund has pitched states and local governments against it (FG).

BudgIT, a civic group committed to government financial transparency, in its report, ‘State of States 2019’, said only three Nigerian state governments (Lagos, Rivers and Akwa Ibom) can finance their recurrent expenditure without allocation from the federal government.

There had been pressure from the Nigeria Governors Forum (NGF) and the general public to stop the suspicious payments to the consultants.

However, in a dramatic twist, less than a month after a directive by President Muhammadu Buhari,, the Ministry of Finance, Budget and National Planning has commenced deductions to pay the claimants.

The permanent secretary, Federal Ministry of Finance, told the Federation Account Allocation Committee (FAAC) meeting on Friday that it has commenced the deductions to pay the consultants.

This information has irked the states which then refused to consider the revenue for the month of October 2021 until the FG comes clean with the deductions.


The Paris Club payments

In 2006, the federal government paid $12 billion to get an $18 billion debt write-off by the Paris Club of international creditors.

However, because the payment was made directly from the revenue accruing to the entire federation, states and LGAs that did not owe the Paris Club asked the federal government for a refund.

Some consultants had surfaced along the line to claim a percentage of the refunds as payment for their purported services to the states and LGAs.

Some contractors also claimed they were asked to execute projects across the country by the Association of Local Governments of Nigeria (ALGON).

Questions were, however, asked on why states would need consultants to negotiate with the federal government over the refund, while the projects said to have been awarded by ALGON turned out to be mostly non-existent.

The governors had asked for a forensic audit.

While the contractors and consultants went to court, the Attorney General, Abubakar Malami, negotiated an out-of-court settlement with them and agreed to pay $418 million as judgment debt.

Meanwhile, despite opposition by the governors and activists, President Buhari went ahead to approve the payments.


Governors cautioned bank CEOs against payment

The Nigeria Governors’ Forum (NGF) had asked banks and their compliance officers to disregard the payment of the controversial $418,953,670.59 to consultants.

In a fresh letter dated September 3, signed by P. H. Ogbole, another Senior Advocate of Nigeria (SAN), the governors reiterated that the promissory notes should be disregarded.

The letter was addressed to the governor of the Central Bank of Nigeria (CBN), the Attorney-General of the Federation (AGF), the finance minister, the director-general of the Debt Management Office and MDs/CEOs/compliance officers of all commercial banks in the country.

“The issuance of promissory notes of a humongous sum of over $418 million to private persons for alleged consultancy work demands not only caution but strict due diligence; particularly when the judgements which gave rise to the payments sought to be enforced are the subject of pending litigation.

“Matters that are sub judice must not be acted upon in a manner that will foist a situation of complete helplessness on the courts and render their decisions nugatory.

“This caveat is therefore issued as a further notice to the honourable minister of finance and the director-general, Debt Management Office to act in the interest of the public and refrain from foisting on the nation another case of P&ID in which but for due diligence, the nation would have been fleeced of billions of dollars.


Forum for Commissioners of Finance protest

A terse statement signed by Mr. David Olofu, chairman, Forum for Commissioners of Finance of Nigeria said the debit happened without notification of all concerned.

The statement indicated that “members declined approval after consideration of the reports for the disbursement of the available revenue because of deduction on funds belonging to the Local Government Councils in favour of some consultants for a $418 million judgment debt for consultancy services with respect to Paris Club Loans refund.”

It said: “Based on available information, the deduction will continue for 10 years (120 months). This is contrary to the provisions of Section 162 of the Constitution of the Federal Republic of Nigeria 1999 as amended.”

Mr. Olofu also noted that “the Nigeria Governors’ Forum (NGF) had objected to the execution of this judgment until full determination of ongoing litigation on the subject matter.”

He disclosed that the “Commissioners for Finance representing states and local government councils do not have prior knowledge of the deduction and coming at a time when states and LGCs are in dire straits will further worsen the fiscal position of these tiers of government.”

He added that “consequent upon these, the meeting was adjourned to allow for further consultations and resolution of all the issues that had been previously raised by the Nigeria Governors’ Forum (NGF) regarding the assignment that gave rise to the claim and the judgment.”


Expert say FG is acting in contempt

Commenting, Barr Eze Onyekpere, the Lead Director, Centre for Social Justice (CSJ), said the federal government is acting in contempt of the court and disrespecting the rule of law.

The federal government is disrespectful of the rule of law. That’s not the way to go. If the FG has gone ahead to overreach the court, that means the FG isn’t waiting for the court to reach a decision,” he said.

He said, “That means as far as the federal government is concerned, the court case is immaterial. They don’t care about the judiciary. It’s improper,” he said.

He noted that “the states should insist that their matter be heard and bring it to the court that the federal government is in contempt of the court.” He also noted that “the minister or whosoever is in charge is acting in contempt of the powers of the court.”

“This is a dictatorship and it’s being executed by those in the corridors of power. This is totally unacceptable” he stated.

Barr Onyekpere also said the stalemate will impact the states’ capacity to pay their bills.

“It will impact the states. They are living on a shoestring budget. They don’t have the revenue to do their work. So the states should insist either amicably or through the judiciary. They shouldn’t accept whatever is shoved down their throats simply because the federal government is holding the money,” he said.

https://dailytrust.com/33-states-may-not-pay-salaries-as-n172bn-deduction-grounds-revenue-disbursement

The entire country is running on a budget deficit. With no bias to any tribe whatsoever, it is my opinion that the creation of 36 states was unnecessary. A lot of states in the north should be merged.

The entire south east region, in all fairness, should be merged into its 3 most productive states; Anambra, Imo, and Ebonyi.

It seems only Lagos and Oyo exist in the south west. In the south south, Cross River State has lost the right to standalone and should promptly be merged with Akwa-Ibom.

Most importantly, any Nigerian President who has the balls should implement the CONFAB report full-time. Any state wey no fit survive make everybody there go die!!!

Nigeria nah one of the few country in the world, where payment of salaries and pension is not seen as a big deal

CrystalSpark:
The entire country is running on a budget deficit. With no bias to any tribe whatsoever, it is my opinion that the creation of 36 states was unnecessary. A lot of states in the north should be merged.

The entire south east region, in all fairness, should be merged into its 3 most productive states; Anambra, Imo, and Ebonyi.

It seems only Lagos and Oyo exist in the south east. In the south south, Cross River State has lost the right to standalone and should promptly be merged with Akwa-Ibom.

Always make your research before you speak bro.

Ebonyi is viable but Ogun state is not viable abi? Continue

DubaiLandLord1:
Always make your research before you speak bro.

Ebonyi is viable but Ogun state is not viable abi? Continue

Ogun with swamps called roads? I judge viability with a lot of metrics most importantly standard of living.

You can’t even wear a white shirt in Ogun!

You don't mean it

Hmmm

2021 fiscal performance ranking others claiming high IGR has nothing to offer except propaganda

Ok

Nawa

Yeye Belo of Kogi state has jux bn handed a golden opportunity not to pay salaries till further notice.

This what fits Nigeria. When you don't care or hold the government to account, they behave anyhow and run the country aground.

Failed state from gross mismanagement and poor handling of the economy.

And they want to be voted to continue with this shameful performance.

I don’t blame Apc and blame the other shameful parties we have that can’t take the bull by the horns.

I have a question oo..

My question is this:
Are states created just to pay salaries?
I mean whenever we are talking about the economic abilities of Nigerias states, nobody talks about their inabilities in the areas of provision of power, water, transport services, housing, training of their citizens, hospitals, quality parks and hospitals and markets and...

What we talk about is the payment of salaries!
I mean some inebriated military officers sat in their officers mess over bowls of nkwobi and hot stout, then decided to create states whimsically, just to provide salaried jobs for all sorts of political turncoats, village henchmen and mercenary hirelings? These strange people will then be crammed into a dead civil service, where they will visit the office every month end just to collect salaries.., and even after they retire, they will be on state pensions.

Essentially states were created in Nigeria as the platform to destribute Niger Delta oil to the rank and file? Since no state has been able to showcase any sort of inventive leadership for years now. Again why do the the federal government destribute oil proceeds to all states in the federation? When are we going to start getting our fair share from Cocoa sales and the bountiful earnings from Kano groundnut pyramids?

Good news

post=107047143:
2021 fiscal performance ranking others claiming high IGR has nothing to offer except propaganda

This list is from Ipob bureau of statistics
So this your upper Iweka bridge list indicates viability abi

Kebbi and Anambra and Ebonyi above Lagos and Akwa Ibom

I'm sure you don't even believe your own bullshit

Just imagine but why deduct it from those that earn peanuts

Nothing will ever make Kogi State to be among the three states that will finance their expenditure without federal allocation.

CrystalSpark:


Ogun with swamps called roads? I judge viability with a lot of metrics most importantly standard of living.

You can’t even wear a white shirt in Ogun!

Na true!

Hmmm

CrystalSpark:


Ogun with swamps called roads? I judge viability with a lot of metrics most importantly standard of living.

You can’t even wear a white shirt in Ogun!

Ebonyi is the most poorest state in Southern Nigeria.

So you feel all the roads in Ogun are terrible?You're not smart bro.

No state in the South East is as viable as Ogun state in terms of IGR and availability of jobs and even the standard of living.

Abakaliki itself is a glorified village. When person comot Abakaliki, the poverty level outside the state capital is scary.

It was so hard for me to see a Yoruba man in abakaliki. I didn't see a single Yoruba man throughout my stay in Abakaliki and other part of the poverty ravage Ebonyi state.

Go Shagamu, Ijebu ode, ijebu Igbo, Abeokuta, Ota, Sango, magboro and other parts of Ogun state, you will see Igbos in large numbers.

DubaiLandLord1:
Ebonyi is the most poorest state in Southern Nigeria.

So you feel all the roads in Ogun are terrible... You're not smart bro.

No state in the South East is as viable as Ogun state in terms of IGR and availability of jobs and even the standard of living.

Abakaliki itself is a glorified village. When person comot abakaliki, the poverty level outside the state capital is scary.

Proper use would be: poorest.

Most poorest is wrong.

This is because you have: “poor, poorer, poorest.”

We

CrystalSpark:
The entire country is running on a budget deficit. With no bias to any tribe whatsoever, it is my opinion that the creation of 36 states was unnecessary. A lot of states in the north should be merged.

The entire south east region, in all fairness, should be merged into its 3 most productive states; Anambra, Imo, and Ebonyi.

It seems only Lagos and Oyo exist in the south west. In the south south, Cross River State has lost the right to standalone and should promptly be merged with Akwa-Ibom.

Most importantly, any Nigerian President who has the balls should implement the CONFAB report full-time. Any state wey no fit survive make everybody there go die!!!

Nigerian leaders have a very low IQ, They should have stayed with just four regional states, North, South, West & East. Instead they stupidly went & create mostly parasitic 36 states! in such a small geographic location. useless!

CrystalSpark:


Proper use would be: poorest.

Most poorest is wrong.

This is because you have: “poor, poorer, poorest.”

Mtcheww

There is money in consultancy services oooo.
That money is going to different pockets.

DOTian:
I have a question oo..

My question is this:
Are states created just to pay salaries?
I mean whenever we are talking about the economic abilities of Nigerias states, nobody talks about their inabilities in the areas of provision of power, water, transport services, housing, training of their citizens, hospitals, quality parks and hospitals and markets and...

What we talk about is the payment of salaries!
I mean some inebriated military officers sat in their officers mess over bowls of nkwobi and hot stout, then decided to create states whimsically, just to provide salaried jobs for all sorts of political turncoats, village henchmen and mercenary hirelings? These strange people will then be crammed into a dead civil service, where they will visit the office every month end just to collect salaries.., and even after they retire, they will be on state pensions.

Essentially states were created in Nigeria as the platform toes tribute Niger Delta oil to the rank and file? Since no state has been able to showcase any sort of inventive leadership for years now. Again why do the the federal government destribute oil proceeds to all states in the federation? When are we going to start getting our fair share from Cocoa sales and the bountiful earnings from Kano groundnut pyramids?

Nigeria matter tire person

CrystalSpark:


Ogun with swamps called roads? I judge viability with a lot of metrics most importantly standard of living.

You can’t even wear a white shirt in Ogun!

lol, these people again,
The whole east should be merged into one honestly, Ebonyi,IMO, Enugu are all civil service states, Anambra is good but according to this report it can't stand on its own same with Abia.

The Ogun state you castigate has an internally generated revenue that will dwarf your state unless you are not an ipobian

you ought to be a comedian, you judge with metrics, I guess your metrics are sourced from Ipob bureau of statistics

Pls when will Nigeria get out of these mess?

Presidential fleets is swallowing billions of naira same govt still debiting LG's pls what do we call this type of democracy for goodness sake?

Do we call it mismanagecracy or cluelesscracy or what?

Apc shame on you!!!