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$148m Consultants’ Pay: Buhari, Govs Meet, Oct Revenue Sharing suspended

Published

4 years ago

October 26, 2021

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There were strong indications on Monday that state governors would soon meet with the President Muhammadu Buhari, over the Federal Government’s decision to debit local government accounts.

It was gathered that the governors decided to meet the President after Friday’s Federation Account Allocation Committee meeting ended in a deadlock following the states’ opposition to the commencement of deduction of $418m from the local governments’ accounts to pay private consultants for the Paris Club refund.

It was learnt that commissioners of finance had briefed the governors and that the states would take up the matter with the President last week.

A top official of the Federal Ministry of Finance, Budget and National Planning, who confided in one of PUNCH correspondents, said, “The governors’ meeting with the President is expected to hold this week, because of the urgency of the matter. Without the allocation, the states cannot pay salaries.”

The states were irked at Friday’s last meeting when they were informed by the Permanent Secretary, Federal Ministry of Finance that deductions from local governments’ allocations had started in order to pay the Paris Club consultants.

The Federal Government had in 2006 paid $12bn to get an $18bn debt write-off by the Paris Club of international creditors.

After realising that the payment was made directly from the revenue accruing to the entire federation, states and local governments that did not owe the Paris Club demanded a refund.

Some consultants claimed that a percentage of the refund as payment for services they said they rendered to the states and local government councils.

Some of the contractors also claimed that they executed projects across the country for the Association of Local Governments of Nigeria.

Governors, who strongly opposed the deductions, insisted that the projects said to have been awarded by ALGON turned out to be mostly non-existent.

The governors, therefore, insisted on a forensic audit, while the contractors and consultants went to court.

The Attorney-General of the Federation, Abubakar Malami, negotiated an out-of-court settlement with the contractors and consultants.

The sum of $418,953,670.59 was agreed on as the judgment debt.

The Nigeria Governors’ Forum subsequently went to court to stop the payment of the controversial sum to the consultants.

In a letter dated September 3, 2021 and signed by a Senior Advocate of Nigeria, P. H. Ogbole, the governors said the money should not be deducted from the local governments’ accounts.

It was learnt that there was confusion at the FAAC meeting on Friday when the states were informed that deductions had commenced despite a subsisting court case on the matter.

When contacted on Monday, the Chairman of the Forum of Commissioners of Finance and Benue State Commissioner for Finance, David Olofu, told one of our correspondents that the new date for the suspended FAAC meeting had not been announced.

He also confirmed that state governors would meet with the President over the controversial deductions.

Olofu disclosed that the commencement of deductions forced FAAC to suspend the revenue distribution for the month of October indefinitely.

The forum chairman recalled that the governors’ forum had objected to the deductions and requested that a forensic audit be carried out to ascertain the true position of things.

Olofu expressed dismay with the commencement of deductions even though the governors objected to such.

According to him, the deduction is illegal because the issue is in court.

He said the deduction should be put on hold until the litigation was discharged.

Olofu stated, “We went to the FAAC meeting for the month of October and noticed that the Paris Club deductions had commenced.

“The assignment is in respect of local government councils though I don’t know the nature of the assignment (work done in local government areas), but it is in respect of consultancy on the Paris Club loan refund.

“The decision was to suspend the distribution of revenue for the month of October pending the resolution of this issue. Recall that the governors’ forum objected to the deductions.”

Speaking on the planned meeting between Buhari and the governors on the issue, Olofu added, “We expect that the Nigerian Governors’ Forum will be meeting with the President to find solutions to this. It is not at our level that the issue can be handled; we are only representing the governors at FAAC.

“I understand that there is litigation on the issue; one would have expected that the deductions would be put on hold until the litigation is discharged.”

Olofu listed other deductions by the Federal Government from the states’ allocations to include bailout and budget support facilities.

Asked when the meeting might be reconvened for revenue distribution, the finance commissioner said there was no definite date yet.

According to him, states may be invited any moment an agreement is reached on the distribution.

“We may be called at any moment; if we are called this evening, it means tomorrow morning we will all meet, but as I am talking now (4.23pm on Monday), I don’t have any information,” he stated.

Another member of FAAC and Delta State Commissioner for Finance, Mr Fidelis Tilije, said in an interview with The PUNCH in Asaba on Monday that the NGF would meet the President on the matter.

He said, “The issue hasn’t been resolved and we are hoping that the NGF will have a meeting with Mr President and we will take it from there.

“As for the allocation for the month of October, Delta State has not received it.”

Responding to the development, the spokesman for the Ministry of Finance, Budget and National Planning, Yunusa Abdullahi, asked one of our correspondents to refer all inquiries related to the allocation of funds from the Federation Account to the Office of the Accountant-General of the Federation.

When contacted, the Director, Information, Press and Public Relations, Office of the Accountant-General of the Federation, Henshaw Ogubike, said there was no update on the issue from his end.

“There is no update; if there is any update on the issue, I will send it,” he simply stated.

When asked when the next FAAC meeting would be held, Ogubike said, “Don’t ask me for an update, because normally I send the update if there is any; if there is any press release, I will send it.”

But a top official of the finance ministry said a new date for the FAAC meeting would be announced today (Tuesday).

(PUNCH)

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News

Edo Seeks FG’s Intervention On Land Dispute With Delta

Published

10 hours ago

November 22, 2025

Editor

The Edo State Government has appealed to the Federal Government to, as a matter of urgency, intercede on the land dispute between the state and its neighboring Delta.

Deputy governor of the state, Hon. Dennis Idahosa made the appeal when he led a delegation comprising officials of the state government and members of the Edo State Boundary Committee on a fact finding mission to disputed communities.

A statement by his Chief Press Secretary, Mr Friday Aghedo, said the fact finding mission was part of an effort to ensure peace,

Idahosa used the avenue to appeal to President Bola Tinubu to use his good office to ensure justice, equity, and fairness prevailed in the areas in dispute.

“I passionately call on the President to use all necessary demarcation agencies to resolve these lingering issues,” he appealed.

While suing for peace from the affected communities, Idahosa noted that the state government was determined to protect the territorial dignity of Edo State and that of the people of Orhionmwon.

He pointed out that the Jameson River is a natural demarcation landmark to the disputed Ugbakele boundary Community.

While calling on the state boundary committee to be diligent in their investigation, he stressed that the outcome of the investigation will guide the recommendations of the committee to the governor.

“We decided to ask questions and the history of this area. We found out that this Jameson River is the natural boundary between Edo and Delta States.

‘You can see the previous structures of the AT&P company. This land is clearly for Edo State.

“We thank the community people and settlers. We plead they continue to maintain the peace pending the outcome of the National Boundary Commission,” he pleaded.

Earlier, Idahosa and his team interfaced with stakeholders and community leaders of Oben, Ikobi, Iguelaba, and Obozogbe-Nugu communities to verify their claims and grievances.

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Police Arrest, Charge Content Creator To Court In Edo

Published

12 hours ago

November 22, 2025

Editor

The Edo State Police Command says it has arrested a 24-year-old content creator identified as Osarobo Omoyemen, for allegedly sharing a content on Tiktok capable of “inciting hostility against the Police and triggering unnecessary tension within the state.”

In a statement made available to newsmen in Benin on Saturday, the command’s Police Public Relations Officer, Moses Yamu, said the suspect, popularly known as ‘Madam Oil Rice,’ recently circulated a “false claim on social media alleging that she was kidnapped along Upper Sakponba Road in Benin City and later rescued by Police operatives who purportedly detained her at Akpata Police Station and collected the sum of Ten Thousand Naira as bail.”

Yamu said worried by the allegation, the command immediately commenced investigation, adding that it was revealed that the entire story was completely fabricated and deliberate.

According to the police’s imagemaker, Madam Oil Rice fabricated the story just to attract followers and viewership, stressing that she had confessed to having fabricated the story.

“During interrogation, the 24year old female suspect, Osarobo Omoyemen confessed that she staged the incident solely to generate online content and attract followers to her TikTok page.

“It was also discovered that she deleted an earlier video in which an accomplice in the background was appealing to viewers to follow her page, clearly exposing the motive behind the false alarm.

“The content was not only misleading but capable of inciting hostility against the Police and triggering unnecessary tension within the state.”

Yamu, while noting that the “suspect has been identified, arrested, and charged to court on Thursday 20th November, 2025 for prosecution, said “efforts are ongoing to arrest her accomplices to ensure they face the full weight of the law.”

The PPRO, who said Madam Oil Rice’s arrest and charge to court was aimed at serving as a “deterrent to others who may attempt to misuse social media to create panic or disrupt public peace,” said “the Edo State Police Command strongly warns against the creation and circulation of fake news capable of disturbing the peace and security of the state.”

He urged members of the public “to verify information before sharing and to refrain from acts that may mislead the public or undermine the efforts of security agencies.”

News

FULL LIST: FG Shuts 41 Unity Schools Over Insecurity

Published

20 hours ago

November 22, 2025

Editor

The Federal Government on Friday ordered the temporary closure of 41 unity schools over the rising cases of abduction across the country.

The decision was announced in a circular issued by the Director of Senior Secondary Education at the Federal Ministry of Education, Binta Abdulkadir.

“Sequel to the recent security challenges in some parts of the country and the need to prevent any security breaches, the Honourable Minister of Education has approved the immediate closure of the listed Federal Unity Colleges.

“Principals of the affected colleges are to ensure strict compliance. Please accept the warm regards of the Honourable Minister,” the circular read.

The affected schools are FGGC Minjibir; FGA Suleja; FTC Ganduje; FGGC Zaria; FTC Kafancha; FGGC Bakori; FTC Dayi; FGC Daura; FGGC Tambuwal; FSC Sokoto; FTC Wurno; FGC Gusau; FGC Anka; FGGC Gwandu; FGC Birnin Yauri; FTC Zuru; FGGC Kazaure; FGC Kiyawa; FTC Hadejia; FGGC Bida; FGC New Bussa; and FTC Kuta-Shiroro.

Others are FGC Ilorin; FGGC Omu-Aran; FTC Gwanara; FGC Ugwolawo; FGGC Kabba; FTC Ogugu; FGGC Bwari; FGC Rubochi; FGGC Abaji; FGGC Potiskum; FGC Buni Yadi; FTC Gashau; FTC Michika; FGC Ganye; FGC Azare; FTC Misau; FGGC Bajoga; FGC Billiri; and FTC Zambuk.

Recall that some students from St. Mary’s School in Papiri, Agwara Local Government Area of Niger State, were kidnapped by terrorists.

The incident comes just days after a similar attack in Maga, Kebbi State, where 25 students were kidnapped, heightening concerns over the deteriorating security situation in educational institutions across the region.

On Thursday, over 50 schools were shut down in Kwara State following attacks by bandits.

President Bola Tinubu had also cancelled his scheduled trips to South Africa and Angola to coordinate the government’s response to the worsening insecurity.