₦airaland Forum

Two years after it was launched by President Muhammadu Buhari on November 17, 2015, in Birnin Kebbi, Kebbi State, the Central Bank of Nigeria’s Anchor Borrowers’ Programme (ABP), appears to have served as another government bonanza to the agricultural sector. By the last count, about 218, 000 farmers from across the federation are benefitting from the N45.5billion scheme (money released through 13 participating financial institutions), which involves 233, 000 hectares of farmland, where eight commodities, namely rice, wheat, maize, cotton, soya-beans, poultry, cassava and groundnuts are being cultivated, in addition to fish farming.

The production of one million metric tons of paddy rice is part of efforts to ensure self-sufficiency in rice production.Among other things, the initiative is also meant to create economic linkages between the over 600, 000 smallholder farmers, and reputable large-scale processors, to raise agricultural output and improve capacity utilisation of integrated mills.

While it is touted as one of the most successful CBN development finance interventions to date, and also deemed to have so far achieved reasonable success, especially in the areas of outreach and coverage, the failure of most of the farmers in some states to repay their loans running into billions of naira, appears to have effectively signaled the commencement of the collapse of the initiative.

Buhari in a nationwide broadcast to mark the country’s 57th independence anniversary described the programme as a success.Only last month, the CBN revealed that it has formed strategic partnerships with agricultural commodity associations to expand the implementation of the ABP.

Its acting Director of Corporate Communications Department (CCD), Isaac Okorafor, who made the disclosure said, “the CBN is forming these partnerships to further ramp up the domestic production of identified commodities by leveraging the existing organised structures of the agricultural associations nationwide, thereby providing huge economics of scale in the implementation of the programme.”

He added that the strategic partnership had begun to yield results with the commencement of the Rice Farmers Association of Nigeria (RIFAN) ABP with the Bank of Agriculture, where about 300, 000 rice farmers across 20 states would be supported during the upcoming dry season farming.

The apex bank spokesman disclosed that an additional two million metric tonnes of paddy rice was expected to be produced under the dedicated RIFAN ABP, adding that all registered agricultural commodity associations could key into this strategic partnership, by simply approaching any of the Participating Financial Institutions (PFI) collaborating with the CBN in the implementation of the programme.

Be that as it may, since the ABP took off, the attitude of some beneficiaries, most of whom have bluntly refused to repay the loans has become a source of concern to many stakeholders, who fear that this singular action could send the wrong message to groups, both local and international, that would have loved to come up with further intervention to strengthen the sector.

While some farmers are alleging that conditions for the loan’s repayment were quite stringent, some are said to be of the view that there was not enough enlightenment campaign to intimate farmers that the loans were repayable; hence some of them saw it as a reward for voting for President Muhammadu Buhari in 2015.

KANO State remains a classic example of the gross failure of farmers to repay the loans they got to better their practice, raise agricultural output and eradicate poverty among them.That perhaps explains why the state government last Sunday disclosed plans to set up mobile courts to try over 4, 500 farmers that have defaulted so far.

Earlier this year, at the expiration of the timeline for the loan for the 2016 farming season, where about 12, 000 farmers, growing rice, maize and soybeans participated, the Kaduna State government took a similar step to retrieve the loan from defaulters.The government effort yielded little dividend as only about 22 per cent of the loan in commodity value, as agreed by the farmers before the facility was disbursed, was recovered.


From the total sum of N950million loan released by the CBN to Kano State rice farmers, only a paltry N6million has been paid back till date.The development has not only posed a serious threat to future disbursement, as there is likelihood of the bank blacklisting the state, it has also created fears that the majority of the farmers in other states might not refund the loan.

According to the state Chairman of All Farmers Association of Nigeria (AFAN), Faruk Rabi’u Musa, out of 5, 540 rice and wheat farmers that secured the loans, not up to 50 of them have repaid. Before unfolding plans to set up mobile courts, the Managing Director of Kano Agricultural and Rural Development Authority (KNARDA), Professor Mahmoud Daneji, irked by the attitude of the defaulting farmers, said a Product Monitoring Team (PMT) had been set up to recover the loans.

Daneji told The Guardian that the nine-man PMT recovery committee, which he chaired, has representatives from the CBN, Bank of Agriculture and the RIFAN.
The KNARDA boss further explained that the PMT Committee was expected to visit the defaulting farmers in all the 44 local councils, so as to facilitate the repayment within the stipulated period.He lamented that, “Out of 5, 540 farmers that collected the loan during the wet season, only few have so far repaid it. This is the reason the loan was not given for the dry season farming.

“The farmers have up to the end of harvesting season to pay the loans, else government will go ahead to recover the loans through legal means,” Daneji said.As chairman of the team, he said, the defaulting farmers had December 2017 deadline to refund the loans, “…as there is no concrete reason they are failing to pay. An excuse that the loan was given to them when it was too late, was nothing more than a flimsy excuse.”

The AFAN chairman, Musa, who doubles as the state chairman of Wheat Farmers Association, said the development forced them to set up a task force to see to the loan recovery.

“Our fear is that when farmers refuse to service their loans, the repercussions will not be on the defaulting rice farmers alone, other potential beneficiaries of similar loans will definitely be affected, like wheat farmers, tomato growers and the like. So we must stand up and see to the end of this unhealthy development,” he said.

“I am afraid if the CBN will again consider our farmers for any agriculture loan in future, if the money is not recovered,” he stated.Musa, who explained that his association intervened in stages said, “Our first stage was to create awareness for the rice farmers to understand why it is necessary for them to pay back without further delay. Under this, we also urged our Islamic clerics to kindly remind people of the obligatory demand of paying back loans when collected from a source. It is indeed unIslamic for anybody to take a loan and refuse to pay at the agreed time,” said Musa.

“The second stage was the taking of the recovery campaign to the clusters used in releasing the loans. This was followed by the third and the last option for the CBN and us.”When the second stage was exhausted, we had no other option than to take the defaulting farmers to face legal action. They must comply, if not they will definitely face the music.”Another perspective given by the AFAN chairman was the notion by farmers that government was just giving out bonanza to citizens, like some other similar schemes.


“Some of them, in my opinion, think they were given the money as a reward for their voting President Muhammadu Buhari to power. If that is not their thinking, why don’t they give a damn about paying back their loans? I always tell them that what was given to them must be paid back, no matter what. They should know that there is nothing like bonanza in this special scheme from the CBN,” Musa warned.The state chapter of RIFAN, however, accused the PMT of sabotaging the rice segment of the scheme.

According to RIFAN chairman, Abubakar H. Aliyu “We are behind on Anchor Borrowers Programme, compared to all participating states.”Their excuse is that our members did not repay the loan they collected for the wet season, but they have forgotten that the loan was given in September 2016 when the rainy season was almost over.”

While the state government blames the farmers’ association for defaulting, the association claimed that even the state’s instituted Product Monitoring Team, was not helping matters between CBN and them.A source close to the farmers’ body alleged that, “When the CBN wanted to give out the loans to us, all rice millers like Dangote and others refused to stand as guarantors. The state government then, stood in for us as our guarantors. And just look at what is happening now.”

A reliable source, however, informed The Guardian that, if the farmers fail to service the loan at the expiration of the deadline, the CBN could try to get the money from the state’s allocation or other avenues. It is the realisation that this could come to pass that the state government has perfected plans to take the over 4, 500 defaulters before a mobile court.

AFAN chairman, Musa, who spoke on Sunday said the state government was toeing this line as the last option to recover the loans.He said the association has been directed to compile the list of all defaulting farmers with a view to submitting it to the state government for necessary action.“The state government will assist the association with police, judges and other staff because it served as a guarantor to the farmers.“We want to change the attitude of some people, who think that the loan is a national cake because they should have paid by April. It is unfortunate that less than 10 per cent of farmers who benefitted from the loan have so far paid the loan,” Musa said.He pointed out that the task force set up by the association to recover the loans was not given the necessary support and cooperation by the defaulters.

KEBBI State, where at least 78, 000 farmers benefitted from the loan is another state, where the programme is facing hitches, owing to the failure of benefitting farmers to repay their loans.Back in May 2017, some of the 5, 968 defaulters were apprehended in Bagudo Local Council and sentenced to different prison terms by a mobile magistrate’s court presided over by Mukthar Tarifiki.

The court, which worked hand in glove with the recovery team led by the state Deputy Governor, Col. Samaila Dabai (rtd.), sentenced the defaulters at its sitting in the council area. The sentencing was on the fifth visit to the council by the recovery team, which at that time had also visited Suru Local Council on three occasions to compel defaulting farmers to repay their loans, without success.

Even the intervention of the district head, Alhaji Muhammadu Bello, which led to defaulters in Suru council being given a period of grace, failed to get them to reciprocate the gesture by paying up. With 11, 549 Suru Council has the highest number of beneficiaries that have defaulted in the payment. That perhaps explained why Dabai expressed displeasure at the attitude of the loan beneficiaries, just as he assured them that government would do everything legitimate to recover the loan.

In October, Governor Atiku Abubakar Bagudu further advised the loan beneficiaries to pay back what they owe in order to ensure continuity.The governor, who gave the advice in an interactive session with newsmen, after the Independence Day broadcast said, “For anybody, who does not to pay back the loan after harvest should be ready to face the wrath of the law.”He added that the loans, through the Bank of Agriculture (BOA) and others were insured to avoid losses on the side of the benefitting farmers.

IN Kaduna State when some of the 12, 000 farmers across three crops (including maize rice and soya beans), who took part in the wet season farming failed to remit what was expected of them, the state government said it would set up mobile courts to recover the N4 billion loan given them.The Commissioner for Agriculture and Forestry, Dr Manzo Maigari, who made the disclosure, said that the courts would try defaulters to ensure a full recovery of the loans from them, even as it had gone ahead to intimate divisional police officers across the state to support it in the recovery efforts.He explained that the policemen would be attached to the off-takers, including Flour Mills and Olam, to ensure 100 a per cent loan recovery before the timeline for the loan elapsed.

Maigari later confirmed in an interview that, “farmers have not been up to date in remitting farm produce as part of the terms and condition for the programme. The wet season Anchor Borrowers’ Programme covered the rainy season farming programme, and we were able to capture about 12, 000 farmers across three crops including maize rice and soya beans with a total of about N4 billion.

“You know it was for wet season farming. It is expected that when they harvest, they will surrender the produce to the off-takers. So far, some off-takers have started aggregating their produce though we have some farmers that are trying to play smart; we have some farmers that are reluctant to release the produce, bringing one excuse or another. No excuse is good enough because, farmers sign MoUs with the off-takers, they also sign MoUs with their banks, inputs were given to them, money for labour was given to them, so there is no excuse,” he was quoted as saying.

OF the N2billion disbursed to benefitting farmers in Delta State, only N100million has been repaid.This development was described by the Asaba Branch Controller of the CBN, Dame Elizabeth Agu as pathetic, adding that efforts were being made to recover the loans.The Guardian reliably learnt that some farmers in the state have either shown no commitment, or were unwilling to repay the loan at all.

However, one of the beneficiaries, Mrs. Divine Amegor said: “We are not satisfied with the system of getting the loans, even the loans could not been used for what they were meant for, it is all like a mystery.” Other farmers, who spoke to The Guardian on condition of anonymity, alleged that the loans procedures were tedious, adding that payments conditions were also too stringent for them to meet.

An investigation further revealed that many of those, who obtained the loans, diverted the funds into other ventures, and were currently finding it difficult to repay.But Dame Agu insists that those, who diverted them into other ventures would be made to repay the loans at all cost.

WHERE farmers are not failing to repay the loans they got on or before the due date, they are alleging the failure of the programme in their states owing to political interferences.This is the case in Cross River and Adamawa states. In Cross River State particularly, farmers have described the scheme as a colossal failure, as most of them could not access the funds to enable them to acquire more land.

They accused the state government of politicising the scheme, maintaining that even the inputs, including fertilisers that were distributed did not go round, and since the farmers did not get cash to procure more land, the rice could not be planted and the fertiliser not optimally used.

According to them, the Ultra Modern Rice Mill in Ogoja, that was to be ready in December to roll out the first batch of rice in December 2017, as promised by the state governor, Ben Ayade, is still under construction. Added to this, is the frustration of farmers, who are still managing with their local mills in Bansara and Ogoja.

However, managers at the site of the rice mill said the mill would now be ready in April 2018. Faced with various challenges, rice farmers during a fact-finding tour of the rice mill and farms by journalists in the state recently, called for a rollover of the scheme from 2017 to 2018, to allow the farmers access the funds.

THE same scenario recently played out in Adamawa State, where the immediate past chairman of the National Association of Rice Farmers in the state, Abdullahi Tafida, predicted that the implementation of the ABP in the state would soon collapse.Tafida, who is the acting secretary, North East Zone of the association, told reporters that in Yola, that due to political interests and improper implementation, the programme was going to fail.He also alleged that the state government had politicised the scheme to the extent that genuine farmers were not being captured.

“The problem is the way and manner the project is implemented in the state, because it looks like there is so much political and personal interests in it.“Most of the beneficiaries are political sympathisers, who have nothing to do with farming. In fact, they have started selling the agricultural inputs given to them to the marketers,’’ Tafida had alleged.

https://guardian.ng/saturday-magazine/cover/anchor-borrowers-programme-as-another-government-bonanza/amp/

Paperwhite:
Buhari is simply corruption personified.Only deluded fellas think otherwise.
-https://www.google.com/amp/punchng.com/buhari-baru-have-made-nnpc-worse/amp/
-http://thestreetjournal.org/2012/10/the-horrendous-ptf-fraud-how-n-25-billion-was-stolen-under-buharis-watch/
.https://www.google.com/amp/s/www.vanguardngr.com/2017/10/25b-nnpc-scam-nigerians-can-now-see-hypocrisy-called-anti-corruption-fight-pdp/amp/

The Report That Indicted Him!

The Petroleum Trust Fund was inaugurated by the Abacha administration in March 1995 and General Muhammadu Buhari was appointed to head the Fund which was formed sequel to the increase in the pump price of petrol to N 11 from N 3.25. The then Head of State, Gen Abacha had said then that the Fund was to distribute the gain from the increased price on social and infrastructural projects.

The Fund started work with an initial capital of about N60b in 1996 with a mandate that included the rehabilitation of roads and waterways, educational and health institutions, providing textbooks and stationery, procuring essential drugs and vaccines, providing water supply systems, reviving crumbling agricultural sectors, connecting outlying areas to the national electricity grid, extending railways and telecommunications and ensuring consistent food supply.

Buhari often referred to as Mai Gaskiya (the honest one) was apparently considered for the job mainly because of the qualities he possessed, with the Abacha led government feeling that would douse the tension generated by the increase in fuel prices. With time however, allegations started flying that the PTF was no more than another avenue for the Abacha administration to siphon funds.

On assumption of office in 1999, Chief Obasanjo disbanded the PTF. One of the discoveries made by the administration was that between its inception and July, 1999, the funds that accrued to the PTF stood at N 181 billion. It was also found out that the Consultants appointed by the Executive Chairman of the Trust Fund, Gen Buhari constantly fleeced the country of funds running into billions.

In 2000, the Obasanjo administration set up an Interim Management Committee to take a look into the affairs of the Petroleum (Special) Trust Fund and ascertain among other things, how much has been spent by the PTF so far and what is on ground to justify the huge expenditure. The Committee the set to work and accomplished all the terms of reference by March 2000. The Interim Management Committee submitted that:


Term of Reference No 1:

The Interim Management Committee has already ascertained the total income that has accrued to PTF from its inception to date. The total amount that has accrued to PTF is N 181, 795, 000, 000 (One hundred and eighty one billion, seven hundred and ninety five million Naira). The report for the ascertainment of accrued income has been completed.



Term of Reference No 2

Independent Consultants were commissioned by the Interim Management Committee to ascertain the state of all the bank accounts operated by the Petroleum Special Trust Fund from its inception up to September, 1999. All the assignments have been completed and all the reports submitted. An Executive Summary was prepared and a total of N 3, 642, 982, 280 (Three billion, six hundred and forty two million, nine hundred and eighty two thousand, two hundred and eighty Naira) was found to be recoverable from various banks, due to excess charges, under payment of interest on fixed term deposits and non-payment of interest on current account balances, as stipulated by Central Bank of Nigeria guidelines.



Terms of Reference No 3

The Petroleum Special Trust Fund intervened in, prepared and packaged, ready for transfer to the appropriate line ministry

(b) Food Supply Sector All the necessary verification work have been concluded for projects and programmes and reports already supplied by independent consultants. The programme is already in the process of being transferred to the appropriate ministry, as per the approval given by Mr President.

(c) Education Sector i) Educational Materials Procurement Programme: The verification of the entire programme has already been done and the process of handing over the whole programme to the appropriate beneficiaries has reached an advance stage as directed by Mr President ii) Rehabilitation of Educational Institutions: The services of various consultants have been used to carry out the technical audit of all the projects throughout the country and a comprehensive up to date report has already been completed by the co-ordinating consultants. The preparation of an Executive Summary has reached an advanced stage.

(d) Health Sector: (i) Drug Revolving Fund: The drug revolving fund programme has been thoroughly verified and all available stocks have been transferred to the various state governments. As per the directive of Mr President (ii) Rehabilitation of Health Institutions: The programme for the rehabilitation of Health Institutions throughout the country has been verified and a comprehensive up to date status report prepared. And Executive Summary for the attention of Mr President is being prepared.

(e) Water Supply Sector: All projects and programmes under this sector have been thoroughly verified in compliance with the terms of reference No 3. A comprehensive and up to date report has already been completed.

(f) Other Project Sector: The projects under the sector which were commenced have already been completed. The rest of the projects are yet to commence. The report stating the above mentioned up to date status of all projects under this sector has already been completed.



Terms Of Reference No 4

(i) The audited account of the fund as at 30th June, 1999 stating the Assets and Liabilities of the Petroleum Special Trust Fund has already been prepared by the KPMG Audit, a firm of Chartered Accountants. (ii) The Audited Accounts of the fund as at 31st December, 1999 stating the Assets and Liabilities of the fund has already been prepared by Pricewaterhouse Coopers Audit, a firm of Chartered Accountants. (iii) The Audited Accounts of the Fund for the month commencing January, 2000 to June 30th 2000 is to commence when the IMC was replaced. This would have given the asset and liabilities of the Fund at the end of the terms of the former IMC.



Terms Of Reference No 5

The present administrative structure was carefully examined and the best option is to transfer each departmental staff operating a project sector to the appropriate ministry where the projects are transferred. This will reduce hardship on the staff and also will enhance the capacity of the ministry concerned for it to cope with the additional responsibility.



Terms of Reference No 6 and 7

The former IMC has undertaken a thorough technical audit of all projects and programmes using well experienced independent consultants. In the process of the technical audit, the sanctity of all contracts agreement was upheld and all costs were evaluated to a realistic level. The value of work done up to date has been ascertained and the estimated cost of completion has also been calculated. The appropriate ministry that will be responsible for the completion of any project may further negotiate the time and cost of completion of any project.

As it has been enumerated above, all the terms of reference given to the former IMC has already been virtually completed. The handing over of projects to respective ministries has already commenced. The former IMC would have completed the winding down of the activities of the Petroleum Special Trust Fund as directed by Mr President by the end of June, 2000.

The total public funds to be recovered from various contractors, banks and consultants amounted to about Twenty five billion, seven hundred and fifty eight million five hundred and thirty two thousand four hundred and forty eight Naira.

Below is the Executive Summary of various reports of the independent consultants on verification exercise which resulted in the funds recoveries.



Members of The Interim Management Committee Are As Follows:

Dr. Haroun Adamu (Chairman), Alhaji Abdu Abdurrahim, Barrister Achana Gaius Yaro, Arc Edward Eguavoen, Mr. T. Andrew Adegboro, Engr Baba Goni Machina



Report On The Amount To Be Recovered From Some PTF Projects And Programmes

The Interim Management Committee was appointed by Mr President. One of the terms of reference of their appointment is to carry out verification exercise on all projects and programmes prior to packaging the projects and programmes for subsequent transfer to the appropriate line ministries. The recoverable exercises of the under-listed projects were completed and the various reports and the IMC recommendations forwarded to President Obasanjo for further directives.



The Listed Projects Are –

(i) Afriproject Consortium (APC) PTF Management Consultants and also Project Consultants (ii) PTF intervention in the HIV/AIDS Programme (iii) PTF Health Sector Intervention inputs (iv) PTF Prevalent cases of expiring drugs all over the country (v) PTF residential estate development on Plot 780 Cadastral Zone A8, Abuja FCT (vi) PTF Head Office extension contract at Airport Road, Abuja (vii) PTF-Bank accounts operated from inception to 31st December 1999.




AFPRI- Project Consortium (APC) Afri-Project Consortium were contracted by PTF as Management Consultants and Project Consultants. The former Chairman of PTF also delegated to them the power of Engineer in all appropriate project requiring such power. Afriproject Consortium then assumed an absolute power of initiation, approval and execution of all projects.

Three reputable management consulting firms were engaged to verify all payments made to (APC) from the inception of PTF up to 30th September, 1999. On verification it was found that they have over charged PTF for their services to the tune of N 2, 057, 550, 062 (Two billion fifty seven million five hundred and fifty thousand and sixty two Naira only).



(ii) PTF Assisted HIV/ AIDS Programmes : The intervention of PTF in the HIV/AIDS was flawed due to professional negligence by the management consultants. There was an excessive order of HIV/AIDS kits which resulted in most of the kits expiring before use. Also there was gross inflation of the purchase price. The two factors combined resulted in a loss of N 579,000,000 (Five hundred and seventy nine million Naira only).


(iii) PTF Intervention Programmes : PTF intervention in the health sector input programmes totalled to about N 9 billion Naira. The projects were executed by the management consultants and PTF in-house staff. In this sector there are three glaring areas of loss: (a) Purchase of specific frames which was done at N 1,900 each while they can be purchased locally at a price between N 80 and N 880. This resulted in total loss of N 45, 270,000 (b) Purchase of ambulances which was done at N 13,000,000 each instead of the price of N 3,000,000 each. This resulted in total loss of N 900,000,000 (Nine hundred million Naira only). (c) Purchase of drugs was done to the tune of N 3.08 billion. Price inflation and expiring of drugs resulted in a loss to PTF of about N 1, 500, 000,000 ( one billion, five hundred million Naira).


(iv) PTF Prevalence Expiring Drugs All Over The Country: A team of Pharmacists were commissioned to verify the Drugs Revolving Fund Programmes. Their findings were very depressing. A huge loss has been incurred by PTF as enumerated below:- (a) Drugs and consumables worth N 817, 831,723 (Eight hundred and seventeen million, eight and thirty one thousand seven hundred and twenty three Naira only) were found to have expired by October, 1999 (b) another quantity of drugs worth N 94, 741, 517 expired in December, 1999 (c) drugs worth N 233, 416, 829 will expire by March 2000 (d) Drugs worth N 461, 255,073 will expire by June 2000 (e) Drugs worth N 429, 117, 861 will expire by September, 2000 (f) Drugs worth N 1, 196, 276, 052 will expire by October- December, 2000.

There were many cases of deterioration of drugs as a result of faulty manufacturing, inappropriate packaging, improper storage and excess stock.



(v) PTF Residential Estate: The involvement of PTF in Residential Estate Development was out of its intervention sphere. As at now, the estate has been confiscated by government. The contract sum is N 703, 815, 416 (Seven hundred and three million, eight hundred and fifteen thousand four hundred and sixteen Naira only) while after verification, the whole project was valued at N 328, 901, 521 (Three hundred and Twenty Eight Million nine hundred and one thousand, five hundred and twenty one Naira only). There was an inflation of the contract to the tune of N 374, 913, 895 (Three hundred and seventy four million, nine hundred and thirteen thousand eight hundred and ninety five Naira only).



(vi) PTF Headquarters Extension: The IMC Commissioned Consultants to determine the current construction cost of the on-going extension at the headquarters office. The current construction cost determined by the Consultant came to N 326, 207, 861 (Three hundred and twenty six million, two hundred and seven thousand, eight hundred and sixty one Naira only) as against a contract sum of N 461, 216, 759 (Four hundred and sixty one million, two hundred and sixteen thousand, seven hundred and fifty nine Naira only) this resulted in contract sum inflation of N 135, 008, 879 (One hundred and thirty five million, eight thousand eight hundred and seventy nine Naira only).



(vii) Bank Accounts Operated By PTF From Inception To December 31, 1999: Various Consultants were commissioned to verify the Bank accounts operated by PTF from inception of the Fund up to 31st December, 1999. The Fund operated its bank accounts under three different categories viz- (a) Administration Account (b) Project Account (c) Treasury Account. Recoveries to be made from the various banks are as follow:

(a) Administration Account Total Amount recoverable is N 664, 415, 793 (Six hundred and sixty four million, four hundred and fifteen thousand seven hundred and ninety three Naira only). This is mainly due to overcharge on Cost of Turnover (COT), non-payment of interest on current account balances as stipulated by Central Bank of Nigeria (CBN) and other various discrepancies.

(b) Project Account On project Account, total amount recoverable is N 2, 467, 817, 167 (Two billion, four hundred and sixty seven million, eight hundred and seventeen thousand, one hundred and sixty seven Naira only). This is made up mainly from overcharge of Cost of Turnover (COT), non-payment of interest on Current Account balances as stipulated by Central Bank of Nigeria (CBN) and other various discrepancies.

(c) Treasury Account All the Treasury Accounts were verified and amount to be recovered is N 510, 749, 323 (Five hundred and ten million, seven hundred and forty nine thousand, three hundred and twenty three Naira only). This is mainly due to short-payment of interest on deposited funds. (See Box A).

The total sum of N 11, 658, 532, 448 (Eleven billion, six hundred and fifty eight million, five hundred and thirty two thousand four hundred and forty eight Naira only) is recoverable as per various reports completed as at now.



1.Other Potential Areas Of Fund Recovery : Road (Highways and Urban Roads) The PSTF uses about 70% of its income on highways and Urban Road Projects. In this project sector, there was total variation of contract sums of N 68,000,000,000 (Sixty eight billion Naira). These variations were not done with properly priced bills of quantities and approved civil contracts procedure as stipulated by government regulations. Taking the experience of what has been discovered after verification of previous contracts awarded by PSTF, the minimum potential recovery will be about 15%. This estimated percentage will be about N 10, 000, 000 (Ten billion Naira). The verification of this project sector was about to take off when the IMC members were replaced.



2. Rural Water Supply Programme The area of potential fund recoveries under this programme are basically two :- (i) Mobilisation paid to contractors who by now have not even commenced work (ii) Over pricing of contracts. The amount to be recovered from this project sector can be conservatively estimated at N 1,000,000,000 (One billion Naira).

The detail verification report on this programme has already been completed. The executive summary of this report was in the process of compilation when the IMC members were replaced.



3. National Health and Educational Institutions Rehabilitation Programme The detail verification exercise on this sector has already been completed by various independent Consultants. The executive summary for total amounts recoverable is now in the process of being compiled. The conservative estimate of amount recoverable due to non-performance of contractors and over-pricing of contract is about N 600,000,000 (Six hundred million Naira).



4. National Educational Material Procurement Programme This programme entails the purchase of educational materials such as text books, exercise books, chalk, dusters, pencils, biro, magazines, maps etc. The verification exercise of this programme is yet to commence. The conservative estimate of recoveries to be made due to non-performance by contractors and inflation of prices will be in the region of N 900,000,000 (Nine hundred million Naira).



5. Rural Telecommunication Programme The Rural Telecommunication Programme was supposed to be carried out in two phases viz: – (i) Pilot programme (ii) The main programme. The main programme was to commence after the pilot programme has been completed and certified as operational, but mobilisation of N 1, 600,000 (One billion, six hundred million Naira) was paid to the contractors for the main programme without any contract being signed at all.

In view of the government policy at present, the full amount of the mobilization paid can be recovered (i.e N 1,600,000,000), See Box B

The Committee recommended that the total recoverable amount can be used to offset some of the outstanding debts because some of the creditors are contractors from whom these amounts are to be recovered. It also recommended that the President may wish to set up a high powered judicial panel to recover the huge public fund and to take the necessary action against any officer, consultant or contractor whose negligence resulted in this colossal loss of public funds.

The Interim Management Committee Members who compiled this report include Dr. Haroun Adamu (Chairman), Alh. Abdu Abdurrahim, Barrister Achana Gaius Yaro, Arc. Edward Eguavoen, Mr. T Andrew Adegboro and Engr. Baba Goni Machina.

fergie001:
I do not believe Lagos would hold back...

For the sake of its enlightenment, civilization and literate populace....it should even be the numero uno in assenting that bill...

I am not surprised about Zamfara and Kano but Lagos?
Or am I missing something....

(Reuters) - Anti-corruption group Transparency International said on Monday Nigeria's government has in the run-up to elections expanded the use of opaque $670 million-a-year funds that fuel graft.

The funds, known as "security votes", are a relic of military rule, mainly disbursed in hard cash and nominally released for dealing with unexpected security issues.

They come from both federal and state governments, although the vast majority is disbursed under the latter.

According to Transparency International's report on Monday they have become "synonymous with official corruption and abuse of power".

The watchdog's report comes as President Muhammadu Buhari is gearing up to run for a second term in February 2019.

A Nigerian presidency spokesman did not respond to calls and messages seeking comment about the report.

Buhari has built his administration's policy on the twin pillars of tackling Nigeria's endemic corruption and restoring stability to the highly insecure country. Hundreds have died this year in communal unrest in the hinterlands and the Boko Haram Islamist insurgency in the northeast.

A number of former government officials have faced criminal charges related to alleged corruption since Buhari came to power. The opposition People's Democratic Party, in power for 16 years prior to Buhari taking office in 2015, has accused the president of focusing on its members.

"The security vote is one of the most durable forms of corruption operating in Nigeria today," said Katherine Dixon, Transparency International's director for defense and security, in a statement.

"Yet instead of addressing its many urgent threats, the ever-increasing use of security votes is providing corrupt officials with an easy-to-use and entirely hidden slush fund."

The group said the spending "is not subject to legislative oversight or independent audit because of its ostensibly sensitive nature", adding that the funds are channeled into political activities such as election campaigns or embezzled outright.

It said federal-level total spending on items identified as security votes increased by 43 percent in 2018's budget from 2017 and included payments to a university, a museum commission and a dental technology school.

Reuters checked some of the figures included in Transparency International's report against a draft version of the 2018 budget, which has not yet been signed into law, and confirmed payments to those recipients were planned and identified as security votes.

Most of the estimated $670 million of security votes is disbursed by state governments, with federal spending making up only $51 million, Transparency International said. State government changes in disbursement varied, according to the report's data.

Additionally, the largest security votes each year go to security agencies, and such spending under Buhari is less than under his predecessor, Goodluck Jonathan, the report acknowledged.

"Today, security votes are budgetary black boxes that are ripe for abuse by politicians seeking reelection or officials looking to run for political office," Transparency International said.

Meanwhile that abomination worn by Gbaja cost $3,450. I guess it makes sense to dress like a wallet when you earn N13m monthly from public funds

greatman247:
But you just joined them by lying too in other to justify your claim. Fuel was not N67 it was N97 before it jumped to N145.