News

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

Published

4 years ago

October 26, 2021

Editor

File copy

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)

Up Next

NDDC trains staff for effective delivery

Don't Miss

Nigeria Now Produces 1.3million Barrels Of Crude Oil Per Day – Sylva

Comments

News

Two Schoolchildren Electrocuted In Anambra During Rainfall

Published

50 minutes ago

October 14, 2025

Editor

Tragedy struck in Nnewichi, Nnewi North Local Government Area of Anambra State on Monday when two schoolchildren were electrocuted while taking shelter from the rain at a roadside shop.

The incident, which occurred at St. Peter’s Claver Junction, threw the community into mourning.

Eyewitnesses and CCTV footage revealed that several pupils had gathered at the shop to escape the downpour when the tragedy happened.

A resident near the scene, who pleaded anonymity, recounted, “Several pupils were taking shelter at the roadside shop during the heavy rainfall. But tragedy struck when the wet bodies of two of the schoolchildren came in contact with a live metal, and they were instantly electrocuted.”

According to witnesses, panic spread as the children collapsed instantly, while others narrowly escaped.

The shop owner was said to have not yet opened for business when the incident occurred.

“It took the intervention of some security officers and passers-by, who used protective gloves to evacuate the bodies,” another eyewitness said.

The incident came just days after a similar tragedy in the same Nnewi area, where a woman was swept away by floodwaters in the Uruagu community.

When contacted, the Anambra State Police Command spokesperson, SP Tochukwu Ikenga, confirmed the incident, noting that an investigation was underway.

“The facts are not clear yet, but the divisional police officer has been directed to find out the details for a comprehensive report,” Ikenga stated.

The latest tragedy adds to recent cases of electrocution in the state.

In May, a three-year-old girl was killed in Awka after stepping on a live cable belonging to the Enugu Electricity Distribution Company.

Residents had reportedly alerted officials about the fallen high-tension wire, but it was not repaired until after the fatal incident.

A resident, identified as Uche, said, “The cable fell on Friday and wasn’t fixed until Sunday, after it had electrocuted the girl. The officials even requested ₦30,000 to fix it but didn’t show up until it was too late.”

The repeated incidents have reignited public concern over poor electricity infrastructure and safety negligence in Anambra communities.

News

Oyo Orders Traders To Vacate Airport Road In Two Weeks

Published

1 hour ago

October 14, 2025

Editor

The Oyo State Government has issued a two-week ultimatum to traders operating along Airport Road, Old Ife Road, and Onipepeye areas of Ibadan to vacate the roadside or face enforcement action.

The directive was detailed in a Tuesday statement released by the Chief Press Secretary to Governor Seyi Makinde, Dr. Suleimon Olanrewaju.

He warned that the state would no longer tolerate roadside trading or the placement of container shops on drainage.

According to the statement, “the government has provided markets and other designated spaces for trading across the city, making it unnecessary and unsafe for traders to occupy roadsides.”

The government said the action was necessary to safeguard lives, prevent environmental hazards, and protect public infrastructure.

It also warned that trading on walkways and blocking drainage channels increases the risk of flooding and undermines the state’s efforts to promote tourism.

“The government has a duty to protect citizens from all manner of danger,” the statement said, noting that roadside trading exposes people to serious risks.

The ultimatum expires on October 27, after which enforcement will begin.

The government said “non-compliance could lead to the confiscation of goods and prosecution of offenders.”

It appealed for cooperation from residents to ensure a cleaner, safer, and more sustainable environment in the state.

News

Admissions: Mathematics No Longer Compulsory For Arts Students, Says FG

Published

1 hour ago

October 14, 2025

Editor

Nigerian senior secondary school students in arts and humanities will no longer be required to present a credit in mathematics in their Senior School Certificate Examination, organised by the West African Examination Council and National Examination Council, as a condition for admission to universities and polytechnics, the Federal Ministry of Education said on Tuesday.

For years, admission seekers in arts and humanities, like their contemporaries in sciences and social sciences, have been mandated to have five credits, including mathematics and English language, to secure admission into higher institutions.

“The revised National Guidelines for Entry Requirements into Nigerian Tertiary Institutions are designed to remove barriers while maintaining academic standards.

“The new framework applies to universities, polytechnics, colleges of education, and Innovation Enterprise Academies across the country as follows:

“Universities: Minimum of five (5) credit passes in relevant subjects, including English Language, obtained in not more than two sittings. Mathematics is mandatory for Science, Technology, and Social Science courses.

“Polytechnics (ND Level): Minimum of four (4) credit passes in relevant subjects, including English Language for non-science courses and Mathematics for science-related programs.

“Polytechnics (HND Level): Minimum of five (5) credit passes in relevant subjects, including English Language and Mathematics.

“Colleges of Education (NCE Level): Minimum of four (4) credit passes in relevant subjects, with English Language mandatory for Arts and Social Science courses, and Mathematics required for Science, Vocational, and Technical programs,” a statement by the FME’s spokesperson, Folasade Boriowo, said.

An education analyst, Ayodamola Oluwatoyin, who spoke to our correspondent in Abuja, hailed the reform.

“This is a brilliant reform, which we hope will open the doors and improve the ease of admissions into tertiary institutions for more seekers.”

The Minister of Education, Dr Tunji Alausa, described the reform as a deliberate effort to expand access to tertiary education.

The ministry also approved a comprehensive reform of admission entry requirements into all tertiary institutions across the country, increasing the average annual intake from about 700,000 to one million students.

According to the government, the new policy aims to expand access to higher education and create opportunities for an additional 250,000 to 300,000 admissions each year.

The minister explained that the reform became necessary after years of limited access, which left many qualified candidates unable to secure admission despite meeting the required standards.

“Every year, over two million candidates sit for the Unified Tertiary Matriculation Examination (UTME), yet only about 700,000 gain admission. This imbalance is not due to lack of ability but outdated and overly stringent entry requirements that must give way to fairness and opportunity.

“The reform is a deliberate effort to expand access to tertiary education, creating opportunities for an additional 250,000 to 300,000 students each year. It reflects our commitment to ensuring that every Nigerian youth has a fair chance to learn, grow, and succeed—putting the Renewed Hope Agenda into action,’’ he said.

The revised National Guidelines for Entry Requirements into Nigerian Tertiary Institutions are designed to remove barriers while maintaining academic standards.