₦airaland Forum

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October 16, 2014 Micheal Abimboye

A government audit of 57 local councils in Lagos State has indicted eight, accusing their officials of squandering at least
N224 million of public funds on a range of questionable expenditure and unimplemented contracts.
The 2012 audit report covers the state’s Local Government Areas, LGAs, created and recognised by the Nigerian
government, as well as Local Development Council Administration, LCDAs, created by the Lagos State government, but
not recognised by the federal government.
Those accused of wasting public funds are Agbado Oke-odo, Surulere, Coker-Aguda, Egbe-Idumu, Eredo, Iba, Ikosi-
Isheri, and Lagos Island East.
The audit assessment, seen by PREMIUM TIMES, accused officials of the affected local authorities of “financial
recklessness”, and blamed them for wasteful spending.
The report also criticised another set of eight local government areas of piling up debts and failing to meet targeted
revenue projections.
The LCDAs in this category are Eti-Osa East, Ikoyi-Obalende, Iru-Victoria Island, Yaba, and Agabo-Oke LCDAs.
The LGAs are Eti-Osa, Lagos Mainland, Somolu.
Together, the eight councils accounted for N788.3 million in debt, and fell short of the projected N831.5 million self-
generated revenue, the report states.
The respective debt profiles of each council were listed as Eti-Osa East N23.7m; Eti-Osa N52m; Ikoyi-Obalende N220.3m,
and Iru Victoria Island N50m.
Others are Lagos Mainland N163.8m; Yaba N51.2m; Somolu N147.5m and Agbado Oke-Odo N79.6m.
Unaccounted funds
The report highlights a series of disturbing spending and practices which the auditors said cost the 16 councils an
“unquantifiable financial shortfalls that could have been used for development projects at the grassroots”.
In Agbado Oke-Odo for instance, officials paid out N11.5m as personal advance for staff of the council since 2010 but
failed to deduct the payments from salaries of the beneficiaries.
Also, the council failed to remit statutory deductions from contracts awarded to the tune of N40.9m.
In Surulere, auditors found that N17.5 m, as against the agreed N12.8m, which was 30 percent of the mobilization sum,
was paid to a contractor for the installation of a Colour Led Display solution screen at Masha Road, Lagos State Water
Corporation Junction in Surulere Even so, “the project has not taken off since February 2011 when the agreement was
signed”, the report stated.
Tajudeen Ajide, the Chairman of Surulere Local Government, told PREMIUM TIMES that the allegations were false.
To prove his innocence, he presented documents and video clips showing that the Colour Led Display solution Screen
project actually kicked off, but was stopped by the Lagos State Advertising Agency, LASSA, which refused to grant
approval for the installation of the screen.
Mr. Ajide took a PREMIUM TIMES’ reporter to the proposed site of the Colour Led Display solution Screen project at
Masha Roundabout, Surulere, where work was yet to commence.
“The Led Display solution screen actually kicked off but the state advertising regulatory agency refused to approve the
locations we offered, the stadium junction and the roundabout at Masha, even after the state government approved the
project,” he said. “And this project would have boosted our revenue generation which I had planned to use to put into
education, and some key areas of the society.”
The council boss however did not explain why N17.5 million was paid instead of N12.8 million, the stipulated 30 per
cent mobilization fee.
Other local areas too
At Coker-Aguda LCDA, “spurious expenditure” totalling N1.3m was made by staff on behalf of the Local Council, the
report said.
“The payment appeared spurious because the minutes of the meetings were not provided to the audit team and pictorial
evidence of performance was not attached to the payment vouchers,” it stated.
A total of N29.1 m was unaccounted for in Egbe-Idimu LCDA.
“Expenditure Not Accounted For: Audit examination of the payment vouchers revealed that the sum of N10.0m paid to
various officers of the Local Council for sundry expenses was not accounted for,” the report said.
“Audit examination of the payment vouchers during the period under review revealed that the twenty-one payment
vouchers totalling N12, 652,000.00 were doubtful and unreasonable.
“Payments for Jobs not Executed Audit examination of payment vouchers showed that the sum of N6, 500,000.00 was
expended on spreading of loose laterite and stabilization of roads during the period under review. Further inspection to
the site revealed that these projects were not executed.
“Unpresented Payment Vouchers: Five payment vouchers totalling N10, 200,000.00 duly posted in the Combined
Cashbook were not produced for audit examination”.
Also, officials of the Eredo LCDA made unauthorized excess expenditure totalling N15m in 2012, just as 52 payment
vouchers amounting to N30.2m and duly paid and posted in the treasury cashbook, were not produced for audit
verification.
Officials of Iba LCDA were also indicted for overpayment of security allowance to the chairman by N2million in 2012.
Ramat Oseni-Adeyeri, the chairperson of Iba LCDA, dismissed the claims against her and other officials.
“It’s a fallacy,” she told PREMIUM TIMES.
At Ikosi-Isheri LCDA, the audit report noted an irregular auto loan facility to the tune of N100m from Fidelity Bank Plc
for the purchase of vehicles for various functionaries of the Local Council.
The transaction was observed to be fraught with various irregularities such as lack of proper documentation.
An audit of Lagos Island East LCDA also revealed expenditure not accounted for to the tune of N6.3million.
The council chairmen of Eti-Osa LGA, Iru Victoria Island LCDA and Surulere LGA responded to PREMIUM TIMES
inquiry.
Yisa Owolabi, the chairman of Eti-Osa East LCDA denied being in debt.
“The council took a facility of N100 m that year on capital project with d approval of the state government and as we
speak we will finish servicing it by the end of next month. We are among the most prudent council,” Mr. Owolabi said.
Also, Abayomi Daramola, the chairman of Iru-Victoria island LCDA said he was sure his council remitted all tax
deductions.
“We are not in any debt neither did we not remit any statutory tax deductions. I’m very sure,” he said.
The chairpersons of other indicted local government/councils did not respond to our requests for comments.



https://www.premiumtimesng.com/investigationspecial-reports/169586-exclusive-audit-exposes-massive-corruption-in-lagos-local-councils-indicts-officials-for-squandering-millions.html

Nigerian cocoa-processing companies say the cost of exporting their products to Europe has been inflated
by 30 percent because of a stalemate in agreeing new trade terms with the European Union, reports
Bloomberg.
Nigerian cocoa butter and cake exports are charged from 4.2 percent to 6.1 percent of freight-on-board
values as taxes at EU ports without an agreement, Felix Oladunjoye, executive secretary of the Cocoa
Processors Association of Nigeria said in a phone interview on Wednesday from Lagos. Nigeria is the only
country in West Africa yet to sign the Economic Partnership Agreement protocol on free trade by the EU and
African, Caribbean and Pacific countries, he said.
“It makes Nigeria-origin cocoa butter and cake less competitive in the international market,” Oladunjoye said.
“It is a direct loss of revenue to the local processing industry.”
Apart from having to export at a cost disadvantage, many of them are burdened by unserviced debts
estimated collectively at about N40 billion ($241 million), preventing new credit lines from banks, according
to Akin Olusuyi, managing director of Ile-Oluji Cocoa Products Ltd. and vice president of Copan.
Eight processing companies located in the main cocoa-growing region in the South West have a combined
installed capacity of 155,000 metric tons a year. Since 2011 they’ve run at 25 percent to 27 percent of
installed capacity, according to Oladunjoye.
Nigeria is the world’s fourth-biggest producer of cocoa after Ivory Coast, Ghana and Indonesia. Nigeria
produced 350,000 tons of cocoa in the 2013-2014 season, according to the Agriculture Ministry. Cocoa fell
0.5 percent to $3,095 per ton as of 10:28 a.m. in London, according to data compiled by Bloomberg.
A government incentive plan to encourage exporters of agricultural items with subsidies ranging from 5
percent to 15 percent has been slow to come into effect, according to Oladunjoye. A backlog of applications
going back to 2011 is still awaiting approval at the Finance Ministry, he said.
Three phone calls to numbers listed for Trade and Investment Ministry went unanswered. Finance ministry
officials weren’t immediately available to comment, an official who answered its phone number said.


businessdayonline.com/2014/10/nigeria-cocoa-processors-face-cost-barriers-to-eu-exports/

eHealth-focused Nigerian tech startup Mobile Software
Solutions has emerged winner of the the Best Mobile
Software Solution in Africa 2014 at the World Summit
Award (WSA). The startup was selected out of over 400
other solutions from across the continent.
The award was presented to its Chairman, Mobile
Software Solutions Ltd, Mr. Chris Uwaje, at the just
concluded 2nd Inter-Ministerial Conference on Sciense,
Technology and Innovation (STI), held in Rabat
Morocco.
The startup’s winning solution is its Malaria Destroyer
Game which had earlier won the Best Mobile App
(Game) of the year award at Mobile West Africa Conference held in Lagos Nigeria.
“With this type of solution, we can stop these massive Malaria deaths and sustain economic growth by ensuring the
good health of our workforce,” Uwaje said.

www.humanipo.com/news/47480/nigerian-ehealth-startup-wins-best-mobile-software-solution-in-africa-award/

kgr28:
Dstv is a private company driven by profits and costs.

Dstv is in a Oligopoly market, not in a goods market.

In Oligopoly...competition is tough..the company that has good strategy, management, good service and quality product will survive.

...and for new companies to enter the market is not simple.

It is not a must to have a dstv, if you want to patronize local satellite tv just leave dstv...

Where are educated nigerian business people ?? for a country that pride itself as the most educated and resourcefull cant come-up with just one satellite tv company that will give dstv a run for its money, instead of blaming dstv...

Quality comes at a price...if you cant afford go local.

In SA we have 3 satellite tv compnies, dstv, Toptv( useless) and EtvHD( its free,no subscriptions) and Siyayatv coming next year..no one here or the government is complaning about the pricing. dstv offer the best content... and they are in competition with SABC stations in terms content.

I pay R295 for my dstv compact...should I complain NO. that is what I can afford. If I want more I cannot pay R663 for premium,...

update your shallow brain ..nigeria had Hitv but dstv killed it. this legislation is to protectthe newly launched CONSAT cable tv

Mynd44:
I have issues with the OP not the government. I don't see the logic in comparing Nigeria to South Africa. We are supposed to be better. We should not even be here discussing this and celebrating.

We should compete with those who are our peers

guy whats your ish? do I own the website that posted the statistical data? oga take your frustrations to them not me

Mynd44:
South Africa has a population of 52.98 million (2013) we have a population of about 150 million and yet you think it is okay to compare Nigeria to them....

I will rather we compare Nigeria to Brazil or Indonesia. That will be more appropriate instead of this chest beating

the source of my post made economic data comparisons between the two countries, so I thought I post it. nobody is beating chest here.

jfking2005:
@Iterator25,
Have you visited south Africa before?
please go there first then only you will waka come to counter this your posted info.
i am very sorry i dont believe those figures because they translate to nothing on ground.
In SA almost all Automobile industries have thier manufacturing base there (please not Assembly plant o)
SA virtually import nothing, kindly ask anybody living there if you have not.
God bless you.

Your claim about SA importing nothing is baseless and ignorant.

www.tradingeconomics.com/south-africa/imports

Russia is better

According to 2013 figures nigeria emerged Africa's largest manufacturing industry post rebasing.

[img]http://www4a.wolframalpha.com/Calculate/MSP/MSP55151i611af7b7c8fd5000006405d0a84bi70449?MSPStoreType=image/gif&s=35&w=575.&h=232.[/img]

m.wolframalpha.com/input/?i=nigeria+gdp+v+South+Africa+gdp+&x=0&y=0

just get a frigging nuclear piwer plant and stop undermining the economy with your stuppid policies

looks like some medical soapy cast. .. nice

is this a thread?

una don de add ponmo, shaky and salt for the story abi?

paniki:
Hahahaha, just read it.

You will see that MTN largest markets are Nigeria, South Africa and Iran.

doesn't change the fact that you're rated low in maths and science..bye

vdGeist:
So Jews call the shots in America?

I'm going to 'pee pee', when a black south african launches his / her own telecom network (for starters) then we can talk

vdGeist:
So Jews call the shots in America?

remove all those white billionaires in your country and lets see if you'd fair well

vdGeist:
Not true, MTN has 57million,
56%

http://sunnewsonline.com/new/?p=82967

my bad

if America can't give us an F16, thry should shove their help where the sun don't shine

vdGeist:
I've told you most of their wealth is hidden, for such a tiny population, they seem to have a lot of power in Nigeria.
Ten years ago there wasn't even 1 billionare in Nigeria. (i might be wrong). Again Nigeria didn't have any laws discriminating against citizens from acquiring wealth.

Anyway I was just interested in the calling the shots part.

How does Rupert call the shots in SA, is he more powerful than Tokyo Sexwale? I don't think so?
Infact, he never says anything to upset the government.

guy, Warren buffet can shake wall street at will... thats power!

paniki:
Best to read the annual report

https://www.mtn.com/investors/financials/pages/annualreports.aspx

did you read the report yourself?

mtn is not just in 2 countries dude, one country gave it 30% of her revenue. .what part of the mathematics dont you understand?

out of 22 countries mara

paniki:
Much like MTN created the industry long before you guys woke up. First entrant to the market always leads the market.

and just to update you. Globacom nigeria has 24 million subscribers, while MTN dropped to 35 million

paniki:
Much like MTN created the industry long before you guys woke up. First entrant to the market always leads the market.

You're somewhat right. MTN 'popularized' the gsm in nigeria but they're not the first.

google the keyword 'ECONET Wireless'

0802

MTN is

0803

paniki:
Customers numbers don't mean much if the customer has little income. MTN Nigeria has way more subscribers than MTN SA, yet MTN SA makes just as much money as MTN Nigeria .

point of correction

mtn makes 30% of their revenue in nigeria which trumps any other country they've invested

www.ventures-africa.com/2013/03/mtn-group-posts-15-billion-revenue-nigeria-contributes-4-2-billion/

vdGeist:
Ha ha, ofcoz white people are over represented amongst the wealthy, just like Lebanese in Nigeria.

I just want you to explain how they still call the shots.

how nany Lebanese have you seen on the wealthy list in nigeria except one. . our blacks still dominate dollar millionaires lisr for starters let alone billionaires list. . I checked yours I see one ..

paniki:
Those banks(except absolutely)are owned by pension funds. .

established before your blacks even had the balls to enter pretoria to reside

paniki:
Those banks(except absolutely)are owned by pension funds. It's so easy to go to the JSE website to see share holdings of listed companies. Those Naija banks you listed are miniature by SA, they would be placed on the same level as what we call micro-lenders.

miniature by sa, I guess you mean small when you compare asset base? True. However, first bank has more customer base than any bank on the continent., why gtbank is the most innovative on the continent(2013 or so)

vdGeist:
Ha ha, how do they call the shots? And. where does 80% come from? I was expecting those redundant line.

we both know they have economy power. .

vdGeist:
I'm seeing richest ten percent, Not white people.
I still need you to explain how they call the shots.
Give an example..

are you telling me sa wealthiest are all blacks. . dude, like really?

vdGeist:
Ha ha, how do they call the shots? And. where does 80% come from? I was expecting those redundant line.

my bad 71%.. almost 80%
m.news24.com/fin24/Economy/71-of-SA-wealth-in-hands-of-richest-10-20141019

paniki:
I'm not sure where you get the 98% statistic. I won't be able to debate with you if you thumb suck numbers.

The argument has already been settled that whites developed most of the developed parts of Africa(Nigeria included). The difference is that South Africa has been maintaining, integrating and expanding what has already been developed while in places like Nigeria you see decay of British development and the little development that happens is spearheaded by foreigners(South African included).

So while you speak of pre-1994 grand decision makers, the reality is that in Nigeria the grand decision makers remain foreign people.

lmao! ok lets look at it this way... FNB, Absa, nedbank etc.. which of them is owned by blacks? thats basically of the bedrock of a country. . the financial industry. we pioneered zenith, gtbank , firstbank (one of the best on the continent) amongst others...
Globacom second biggest employs thousands of nigerians (black also)... what has your boers maintained for us? than shoprite, dstv and mtn.. which have local competitions... other things you done is to buy equity in nigerian businesses . . you're drunk!

vdGeist:
Ofcoz the people governing were doing their duty, which is to develop the country, just like the present government is doing.

don't be delusional, they still call the shots.. 80% of the country's wealth belongs to them mara

vdGeist:
It's the truth, you won't read that in his biography obviously.

I'm glad its your opinion