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FULL LIST: 31 States Owe CBN N340bn Bailout Funds

Published

2 months ago

March 24, 2024

Editor

Thirty-one state governments owe the Central Bank of Nigeria, CBN, a total of N339.9bn obtained to pay workers’ salaries between 2015 and 2023, a document obtained from the apex bank has revealed.

The document also stated that the sub-nationals had yet to pay an outstanding of N339.97bn and a loan default of N1.31bn as of September 2023.

The fund, which was facilitated through the Salary Bailout Facility, a strategic intervention by the CBN aimed at alleviating the fiscal pressures faced by the states, was part of the over N10.3tn intervention fund made available by the apex bank under the immediate former CBN governor, Godwin Emefiele.

In contrast, the current governor, Olayemi Cardoso, stopped the programme, stressing that the apex bank could not continue to fund more intervention programmes amidst the current economic crisis.

The CBN said the SBF was designed to help the state governments to clear the backlog of salaries owed their employees. The initiative underscores the critical role of the CBN in stabilising the country’s financial landscape, especially in times of fiscal distress faced by state administrations.

The programme, which has been closed according to its status report, involved key stakeholders, such as the benefiting state governments, Deposit Money Banks, the Federal Ministry of Finance, and the Accountant-General of the Federation, all of whom played pivotal roles in implementing and managing the bailout package.

A breakdown of the report showed that 31 state governments benefited from the initiative, with N457.17bn disbursed. Despite the substantial disbursement, the principal repayment made so far totalled N117.21bn, with interest repayments at N45.21bn.

It also showed that the states collectively borrowed N457.17bn to pay salaries to their respective civil servants and an overdue amount of N1.31bn.

The report further said the top beneficiaries of the bailout facility included Imo, which received N20.46bn; Kogi, N20.26bn; Kano, N20.21bn; Oyo, N16.81bn; and Osun, N15.93bn.

The inability of the states to perform their primary obligation to their workforce has been a front-burner issue in recent times amidst clamour by labour unions to increase the minimum wage from the current N30,000.

Last year, state governments borrowed about N46.17bn from three banks to pay salaries between January and June, according to an analysis of the half-year 2023 financial statements of Access Bank, Fidelity Bank, and the Zenith Bank Group.

It was observed that the states borrowed the most from Access Bank in the six months, with a record of N42.97bn loan.

This was followed by Zenith Bank with N1.78bn, and Fidelity Bank with N1.42bn in the six months.

The PUNCH reported the inability of 24 states to pay workers’ salaries this year without having to wait for federal allocations from the central government despite improved federal allocations.

The development also means that the respective wage bills of the affected states surpassed their various internally generated revenues, raising concerns about workers productivity and state governments’ efficiency in internal revenue generation.

The 24 states include Bayelsa, Ondo, Yobe, Sokoto, Taraba, Plateau, Oyo, Niger, Nasarawa, Kogi, Kebbi, Katsina, Jigawa, Gombe, Ekiti, Ebonyi, and Borno.

Others are Benue, Bauchi, Adamawa, Akwa Ibom, Cross River, Abia, and Delta.

In 2023, state governors got the most Federal Account Allocation Committee disbursements in at least seven years. The rise in FAAC allocations to the three tiers of government, especially the states, followed the removal of petrol subsidy and currency reforms of the current administration. The reforms have reportedly led to a 40 per cent boost in income.

Financial experts have raised concerns about states’ spending on recurrent expenditure, highlighting the need to embrace financial innovations.

‘States risk insolvency’

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the report indicated that a majority of states were not financially sustainable and were at risk of insolvency if there was no boost in investment.

He said, “This issue is a fiscal sustainability problem, showing that many states are not fiscally sustainable and need to work towards it; and that the states need to do a lot more to attract more investments to their states so that their level of dependence on the Federal Allocation Accounts Committee would reduce.

“Even as we speak, many of them are also in debt, and by the time they pay salaries and service their debts, there is not much left to improve on infrastructure. It’s in the interest of the sustainability of the states for them to be more creative in generating more revenue and attracting more investment to their states so that they can generate more revenue.

“Secondly, we also need to address the issue of fiscal federalism because some of the states don’t have power over some resources in their domain and can’t bring investors into it. For instance, mining is controlled mainly by the Federal Government, you get permission from them and revenue is remitted to them. So we need to revisit the issue of restructuring to help states have more control over resources within their domain.”

A development economist, Aliyu Ilias, said many states had yet to fully develop themselves as industrialised and marketable to attract investors.

Ilias urged governors to develop an area of strength they could leverage to attract foreign investments.

To address these ongoing challenges, the report recommends that an increased focus be placed on enlightening state investment companies about the benefits of Public-Private Partnerships. Such partnerships could significantly enhance the state’s Internally Generated Revenue, improving fiscal health and reducing dependence on bailout facilities for salary payments.

This delay underscores the broader challenges of fiscal management and sustainability within the states, highlighting the need for more robust financial strategies and practices.
PUNCH

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Kudos As Nigeria Gains Additional Territory ‘Five Times The Size Of Lagos’

Published

17 hours ago

May 15, 2024

Editor

President Bola Tinubu has commended the High Powered Presidential Committee, HPPC, on Nigeria’s extended continental shelf project, a team of experts who worked hard over the years to advance the project.

The president gave the commendation when he received the report of the protect yesterday in Abuja.

According to Vanguard, the project aims to extend Nigeria’s maritime boundaries in accordance with the United Nations Convention on the Law of the Sea (UNCLOS), 1982.

The president expressed his appreciation in Abuja after listening to technical presentations by Professor Larry Awosika, a marine scientist and member of the committee, and Surveyor Aliyu Omar, Secretary of HPPC.

The experts have been involved in the project since Nigeria’s initial submission to extend its continental shelf to the United Nations Commission on the Limits of the Continental Shelf (CLCS) in 2009.

They informed the President that the UN has approved Nigeria’s submission, granting sovereignty over additional square kilometres of maritime territory.

A statement issued by the Special Adviser to the President on Media and Publicity, Chief Ajuri Ngelale, quoted the President as saying: ‘’When the HPPC briefed former President Muhammadu Buhari in 2022 on the status of the project, the United Nations Commission on the Limits of the Continental Shelf, CLCS, was still considering Nigeria’s submission and having technical interactions with the HPPC.

‘’These interactions and consideration have now culminated in the approval for Nigeria to extend its continental shelf beyond 200M (200 nautical miles).

‘’As it stands now, the area approved for Nigeria is about 16,300 square kilometres, which is about five times the size of Lagos State,” Surveyor Omar told the president.’’

He added that the official notification of the decision was conveyed to Nigeria by the UN Nations Commission on the limits of the Continental Shelf, CLCS, in August 2023, shortly after President Tinubu assumed office.

Omar outlined the available options for Nigeria following the approval: “The first option is to take the area gained and finalize the registration with the UN Secretary-General and close everything, meaning that we are satisfied with what we got. This will take at least one year.

“The second option is to take what we have right now, acquire more data, do a support write-up, and make a revised submission as recommended by CLCS for further consideration. This will take another four years. Either way (options), Nigeria will keep what has been approved.”

In his presentation, Professor Awosika explained that the approval came after years of meticulous scientific research on geophysics, geology, geography, and diplomatic efforts, which solidified Nigeria’s legal rights over a vast expanse of seabed and subsoil beyond its traditional territorial waters.

Awosika highlighted the economic potential of the newly acquired territory, which includes hydrocarbons, gas, solid minerals, and a wide variety of sedentary species.

He, however, cautioned against total disclosure of sensitive data acquired during surveys, noting that this will jeopardize confidentiality as Nigeria is expected to monetize the information to recover project expenses.

Responding, the president thanked the experts for their diligence, emphasizing the significance of the achievement for Nigeria’s economic and strategic interests.
VANGUARD

Headline

Police Give Tips On How To Report Erring Officers

Published

18 hours ago

May 15, 2024

Editor

The Police have urged Nigerians to take the advantage of its Complaint Response Unit, at the Force Headquarters, to report misconduct of its officers and men.

The Head of the unit, CSP El-Musta Sani, made the appeal at a Summit organised in Abuja by the Public Complaints Commission (PCC) in collaboration with the Foundation for Youth Empowerment and Social Justice.

Sanni said that the unit was created in 2015 to handle complaints against police officers from members of the public.

He said, so far, from the first quarter of 2024, the unit had received 459 complaints from members of the public against officers and men, through its social media platforms.

He further explained that 265 of the cases had been resolved while 195 were still being handled by the police.

According to him, “It takes the Unit 21 days to receive and conclude investigations on all complaints”.

He said it was worrisome that members of the public did not know about the platforms to channel their complaints.

“The major problem is that the institutions are there, but Nigerians do not know their functions.

“We receive complaints through WhatsApp, Twitter handles, phone calls, and walk-in petitions.

“And the Unit is directly responsible to the Office of the Inspector General of Police through the Public Relation Officer,” he said.

Sanni assured more sensitisation to enlighten the public to take advantage of the opportunity to lodge their complaint for proper handling.

In his remarks, the Chief Commissioner of PCC, Mr Abimbola Ayo-Yusuf emphasised the need to strengthen institutions to combat administrative injustice and corruption.

He noted that, properly developed institution is key to good governance, adding that the summit aimed to improve service delivery and ensure that the right to complain and raise issues was available to everyone.

“The purpose of this Summit, which is to foster collaboration between the Public Complaints Commission and other organisations, is quite timely and key to the understanding of the mandate of the Commission.

“The PCC, known as the Nigerian version of the Ombudsman, was established to investigate complaints regarding administrative actions,” he said.

Ms. Sandra Benson, the Director Administration, Foundation for Youth Empowerment and Social Justice, said that the Foundation and PCC were working hard to ensure justice for those who had faced injustices over the years.

Banson emphasised the need for collective action to address the issues, stating that now was the time to match voices with action for good governance.

She highlighted the importance of addressing citizens’ complaints about administrative actions and called for immediate responses, sensitisation of workers on grievance channels, and cooperation for swift justice.

“The Summit marks the beginning of important engagements with stakeholders and the PCC, aiming to restore trust in the system and liberate workers from bad leadership.”

Also speaking, Maurice Okoye, the Chief Executive Officer (CEO) Jewel Social Empowerment Initiative, said that the critical need for consequence management in addressing issues in Nigeria was necessary.

Okoye cited the absence of consequence management as a major challenge, leading to lack of accountability among government agency heads.

He also mentioned the reluctance of many to seek justice due to a lack of confidence in the system.

He cited an example where one of his friends chose not to pursue justice after a robbery due to high costs and skepticism about the outcome.

Okoye called for a restoration of public confidence in the justice system and emphasised the need for accountability and responsibility among leaders.

NAN

Headline

Google To Offer AI-generated Answers In Search Results

Published

1 day ago

May 14, 2024

Editor

Google has announced it would introduce AI-generated answers to online queries made by users in the United States, in one of the biggest updates to its search engine in 25 years.

“I’m excited to announce that we will begin launching this fully revamped experience, ‘AI overviews,’ to everyone in the US this week,” Google chief executive Sundar Pichai said at an event in California on Tuesday, May 14.

Google’s search results will feature an AI summary at the top of the page before the more typical unfurling of links.

The AI answers generated by Google’s Gemini technology will offer succinct summaries of what it found on the internet with links to the online sources that supplied the information.

“You can ask whatever’s on your mind or whatever you need to get done – from researching to planning to brainstorming – and Google will take care of the legwork,” said Google Search team boss Liz Reid.

The change comes as Google feels growing pressure from AI-powered search engines like Perplexity, and from the rumors that OpenAI, the creator of ChatGPT, is building its own AI search tool.

Searches through AI chats have also appeared on Facebook, Instagram and WhatsApp, with users able to get information from the web without Google.

The change will soon spread to other countries, Pichai added, making it accessible to more than a billion people.