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Oil-producing States Borrow N1.3tn Amid N6.4tn Windfall

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PANDEF, others ask N’Delta governors to showcase development projects

Oil-producing states received N1.9tn as derivation fund under Buhari – Minister

The total debts of 10 oil-producing states rose from N2.04tn in December 2015 to N3.35tn as of June 2022, according to sub-national debt reports of the Debt Management Office.

This means that a total of N1.31tn was borrowed within a period of about seven years by the states.

The 10 states are: Rivers, Akwa Ibom, Delta, Edo, Abia, Ondo, Imo, Cross River, Bayelsa and Lagos.

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This came as findings by The PUNCH show that the oil-producing states received the sum of N6.4tn in federal allocation and 13 per cent derivation fund.

The Federal Government disbursed a total of N1.98tn as a share of the 13 per cent derivation fund to oil-producing states, the Minister of Finance, Budget, and National budget, Zainab Ahmed, disclosed on Thursday, at the sixth edition of the PMB Administration Scorecard.

She stated that the amount was paid in seven years despite some of the funds preceding the current administration.

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She said, “One of the key functions of the Ministry of Finance Budget and National Planning is in support of states. The President understands very clearly that this economy wouldn’t have been growing consecutively or wouldn’t have been able to pull ourselves out of recession twice.

“We wouldn’t have been able to grow consistently without enabling the states to grow because it is a federation.

READ ALSO: Police Arraign Cryptocurrency Marketer Over Alleged N51.7m Fraud

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“Mr. President has been very uniquely generous in his support to states. I can say no president has provided the level of support provided to the states of the Federation.

“He understands that the federating units need to work together as one to achieve the targets that he has set for the country. So, everybody goes to support sub-national governments.

“In seven years, we have disbursed N1.98 trillion in funds to oil-producing states.”

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Recall that the 13 per cent derivation fund has been a controversial issue after comments by Rivers State Governor, Nyesom Wike, alleging that the oil-producing states had refused to disclose their own shares paid by the Federal Government from 1999 to all the Niger Delta States.

Ahmed further said that the government had supported states of the federation N5.03tn and an additional $3.4bn since 2015.

She said, “With respect to sub-national governments, the ministry goes over and above its statutory role to provide financial support to States:

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“A total of N5.03tn plus an additional $3.4bn has been released to states by the Federal Government over the life of this administration.

“Each of these payments has distinct repayment terms with some given as grants and others as loans with favourable repayment terms, including a long amortisation period.

“The support covers the 13 per cent Derivation refund to oil-producing states, refunds for construction of federal roads, ecological support, support from the Development of Natural Resources Fund, Paris Club refunds, support from the Stabilisation Fund, COVID intervention amongst others.”

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Reeling out the details, Ahmed said N445bn was given as salary bailout to states except Akwa Ibom, Anambra, Jigawa, Lagos and Yobe in September 2015, while N340bn was disbursed to states except Lagos and Osun as excess crude loan. Also, N610bn was allocated to all states, except Lagos, as a budget support facility.

Other support included: $2.67tn as an outright Paris Club refund; N750m disbursed in 2021 as an SFTAS reward; and N600bn paid as withdrawal from payment of subsidy in April 2022.

Speaking further, the minister revealed that the non-oil sector had continued to maintain high-level performance in terms of revenue generated, adding that it was currently the mainstay of the nation’s economy.

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She said that the sector contributed N1.71trn out of the total revenue of N4.19trn, an outturn of 100.7 per cent compared to the budget projection.

READ ALSO: Reactions Trail $1.1bn Derivation Fund In Akwa Ibom

“Today, I call your attention to the very high performance of the non-oil sector of our economy. As of September 2022, the Federal Government’s share of oil revenues to fund the budget was N535.5bn representing 32.6 per cent performance), while non-oil tax revenues totalled N1.71tn an outturn of 100.7 per cent compared to the budget projection.

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“The non-oil revenue share of funding the Federal Government has improved. We have been able to move from contributing 35 per cent to the federal budget to contributing 73 per cent to the financing of the federal budget.”

N6.4tn windfall

Oil-producing states got N4.46tn from Federation Account Allocation Committee between 2016 and 2020, according to data from the National Bureau of Statistics collated by The PUNCH. When combined with the N1.98tn allocated to oil-producing states as a share of the 13 per cent derivation, the amount moves to N6.4tn.

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Within the period under review, Delta got the highest allocation of N804.27bn while Cross River got the least, N147.86bn.

The allocation of other states were as follows: Akwa Ibom, N769.19bn; Lagos, N523.63bn; Rivers, N675.54bn; Edo, N255.32bn; Abia, N225.47bn; Ondo, N250.86bn; Imo, N234.37bn; and Bayelsa, N575.39bn.

According to the NBS, FAAC gets oil revenues and related taxes, revenues from the Nigerian Customs Service, company income tax, any sale of national assets as well as surplus and dividends from state-owned enterprises.

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Meanwhile, the total debts of 10 oil-producing states rose from N2.04tn in December 2015 to N3.35tn as of June 2022, according to sub-national debt reports of the Debt Management Office.

A further breakdown showed that in 2015, a total of N1.22tn was from domestic creditors while $1.84bn (or N817.27bn at the Central Bank of Nigeria’s exchange rate of N444.17 per dollar as of November 1, 2022) was from external sources.

By June 2022, N2.42tn was borrowed from domestic sources while $2.31bn was from foreign sources such as the World Bank and African Development Bank.

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For sub-national domestic debts, Lagos leads with the most debt, from N218.54bn domestic debt in 2015 to N797.31bn by June 2022.

It is followed by Delta, whose debt rose from N320.61bn domestic debt in 2015 to N378.88bn by June 2022.

Third on the list is Rivers, from N134.97bn domestic debt in 2015 to N225.51bn by June 2022.

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For foreign debt, Lagos leads with the most debt, from $1.21bn in 2015 to $1.27bn by June 2022.

It is followed by Edo, whose external debt increased from $168.19m to $268.31m. Cross River is next, from $136.4m to $215.74m within the period under review.

PANDEF, Kio-Briggs kick

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The Pan Niger Delta Forum and popular rights activist, Ann Kio-Briggs, have taken a swipe at the Federal Government over claims that the N1.98tn it disbursed to the Niger Delta region was not commensurate with the level of development in the region.

The National Publicity Secretary of PANDEF, Ken Robinson, said, “As you know, the fact of the matter is that it is the resources of the Niger Delta people that the Federal Government of Nigeria is plundering, wasting over the years. To say that they have given the Niger Delta N1.98tn as reported and all that is unnecessary. What is N1.98tn?

“How much has been taken away from the Niger Delta compared to the devastation that has been done to the Niger Delta environment and the livelihoods of the people that have been decimated?

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“And all these complicate or increase the social and economic challenges of the area. There are more people who ordinarily would have been involved in farming or fishing who are now looking for jobs.”

The PANDEF spokesman explained that no amount of funds allotted to the crude oil and gas-rich region was too much, being the goose laying the golden egg.

He, however, said it was not an excuse for the poor governance in the country, which he said was not peculiar to the Niger Delta alone.

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And I think that some of these governors in the Niger Delta should also do more in terms of showcasing what they are doing with the resources that they got. And that we will say that whether the level of development is commensurate to the amount of money received is relative because of the difficult terrain the Niger Delta is faced with in terms of developmental challenges.”

READ ALSO: Account For 13% Oil Derivation Backlog Paid By Buhari, Wike N’Delta Governors

On her part, Kio-Briggs said the Federal Government must be specific and come up with facts as to which agency or governors the amounts they claimed to have disbursed was given for purposes of accountability.

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She said, “First of all, I don’t like it when the government says that they have disbursed so much money.

“When you want to give information, you have to give credible, verifiable, truthful information to people, so that people can make up their minds. You can’t make up their minds for them.

“Why do I say this? You can’t just say you have disbursed so much to Niger Delta, no. Say I have disbursed N2.3trillion hypothetically to the Niger Delta Development Commission; I have disbursed N5. 2tn to the Ministry of Niger Delta.”

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Continuing, Kio-Briggs stated that the people of the region were not fools to believe hook, line and sinker anything the Federal Government says.

PUNCH

 

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Trump Threatens To Unleash ‘Hell’ On Hamas

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US President Donald Trump has given Hamas until 2200 GMT on Sunday to accept his 20-point plan for peace in Gaza, warning the Palestinian militant group faced “all hell” if it did not agree to the terms.

The US leader set the deadline — which would fall at 1:00 a.m. Monday in Gaza — after an official for the Islamist movement told AFP earlier on Friday that the group still needed time to study the proposal to end nearly two years of devastating war in the Palestinian territory.

“If this LAST CHANCE agreement is not reached, all HELL, like no one has ever seen before, will break out against Hamas,” Trump posted on his Truth Social platform.

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The proposal, backed by Israeli Prime Minister Benjamin Netanyahu, calls for a ceasefire, the release of hostages within 72 hours, Hamas’s disarmament and a gradual Israeli withdrawal from Gaza.

READ ALSO:Israeli Forces Strike Gaza Despite Trump’s Ceasefire Call

That would be followed by a post-war transitional authority headed by Trump himself.

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“Hamas is still continuing consultations regarding Trump’s plan… and has informed mediators that the consultations are ongoing and need some time,” the official said on condition of anonymity because they were not authorised to speak publicly on the matter.

On Tuesday, Trump gave Hamas “three or four days” to accept his plan, which has been welcomed by world powers, including Arab and Muslim nations.

Mohammad Nazzal, a member of Hamas’s political bureau, said in a statement Friday that the “plan has points of concern, and we will announce our position on it soon.”

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READ ALSO:Israel Strikes Hamas Leadership, Explosions Reported In Qatar’s Capital

As Hamas mulled Trump’s peace plan this week, a Palestinian source close to the group’s leadership told AFP on Wednesday that the Islamist movement wanted to amend some clauses, including the one on disarmament.

Hamas leaders also want “international guarantees” for a full Israeli withdrawal and that no assassination attempts would be made inside or outside Gaza, the source added.

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Another source familiar with the negotiations told AFP that the group was split over Trump’s plan.

Structurally, the group’s leadership is divided between officials based in the Gaza Strip and those abroad, particularly in Qatar.

READ ALSO:Spain Cancels $825m Israel Arms Deal Over Gaza

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Much of Hamas’s leadership has also been wiped out in Israeli attacks throughout the war.

The source told AFP that “the first (opinion) supports unconditional approval, as the priority is a ceasefire under Trump’s guarantees, with mediators ensuring Israel implements the plan”.

“The second has serious reservations regarding key clauses… They favour conditional approval with clarifications reflecting Hamas’s and the resistance factions’ demands,” the source added.

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Hugh Lovatt, a senior policy fellow at the European Council on Foreign Relations, said “ultimately it’s not just about convincing Hamas leadership in Doha, but also the leadership in Gaza, as well as Hamas members and fighters in Gaza.”

READ ALSO:Israel Begins Ground Offensive In Gaza Despite International Criticism

“Additionally, Hamas must then be able to convince other factions in Gaza,” he added.

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The war was triggered by Hamas’s October 7, 2023 attack on Israel, which resulted in the deaths of 1,219 people, mostly civilians, according to an AFP tally of Israeli official figures.

Israel’s retaliatory offensive has killed at least 66,288 Palestinians, according to health ministry figures in the Hamas-run territory that the United Nations considers reliable.

Their data does not distinguish between civilians and combatants, but indicates that more than half of the dead are women and children.

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Israeli Forces Strike Gaza Despite Trump’s Ceasefire Call

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Gaza’s civil defence agency said Saturday that Israel carried out dozens of attacks on Gaza City despite US President Donald Trump’s appeal to end bombardments after Hamas accepted a ceasefire deal.

It was a very violent night, during which the (Israeli army) carried out dozens of air strikes and artillery shelling on Gaza City and other areas in the Strip, despite President Trump’s call to halt the bombing,” civil defence spokesman Mahmud Bassal told AFP.

Bassal, whose agency is a rescue force which operates under Hamas authority, added that 20 homes were destroyed in the overnight bombardments.

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READ ALSO:Brazil Slams Israel’s Gaza Aid Interception, Demands Detainees’ Safety

“The situation is very serious in Gaza City,” Bassal said, adding that his teams were not able to reach all the casualties due to the “presence of tanks and the ongoing bombardment”.

Contacted by AFP, the Israeli military said it was “checking” reports of overnight bombardments on Gaza City.

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Gaza City’s Baptist Hospital said in a statement that it received casualties from a strike on a home in Tuffah neighbourhood, including four dead and “several wounded”.

READ ALSO:Brazil Slams Israel’s Gaza Aid Interception, Demands Detainees’ Safety

Nasser Hospital in south Gaza’s Khan Yunis said two children were killed and eight people were wounded in a drone strike on a tent in a camp for displaced Gazans.

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The peace plan for Gaza, presented by Trump this week and backed by Israeli Prime Minister Benjamin Netanyahu, calls for a ceasefire, the release of hostages within 72 hours, Hamas’s disarmament and a gradual Israeli withdrawal from Gaza.

Hamas said on Friday it was ready to release hostages held in Gaza under the Trump plan, but wanted negotiations on the details and a say in the future of the Palestinian territory.

AFP

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Prosecutors Seek 11-year Sentence For Diddy, Citing ‘Lack Of Remorse’

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Prosecutors urged a federal judge Friday to sentence Sean “Diddy” Combs to more than a decade behind bars for his conviction on two prostitution-related counts, saying the music mogul had shown a lack of remorse.

This is not a person who has accepted responsibility,” prosecutor Christy Slavik told the New York court at Diddy’s sentencing hearing.

“His remorse was qualified. It’s as though he thinks the law doesn’t apply to him,” Slavik said in arguing for an 11-year prison sentence for the 55-year-old hip-hop innovator. ” “His respect for the law is just lip service.”

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Combs’s lawyers have asked the judge for a 14-month sentence, which would effectively be time served.

Slavik said Combs had booked speaking engagements in Miami next week in anticipation of a light sentence, which she called “the height of hubris.”

READ ALSO:Jury Selection Begins In Sean ‘Diddy’ Combs Sex Crimes Trial

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Judge Arun Subramanian for his part said federal sentencing guidelines suggested a prison term of between six and seven years although he has the latitude to impose more or less.

The judge also noted an apparent lack of remorse, saying Combs has “challenged his factual guilt full-throatedly.”

Combs was expected to address the court at the sentencing hearing after submitting a letter to the judge on Thursday pleading for mercy and saying he had “lost my way.”

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Following two months of often searing testimony, jurors in July rejected the most serious charges of sex trafficking and racketeering against Combs, sparing him the prospect of life in prison.

Combs’s mother and six of his children were in court on Friday and have submitted letters to the judge in his support.

READ ALSO:Woman Who Accused Jay-Z, Diddy Of Rape Drops Lawsuit

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In his plea to the judge, Combs apologised for his conduct, saying he was “scared to death” to be away from his family and vowing he “will never commit a crime again.”

“I lost my way,” he wrote. “I got lost in my journey. Lost in the drugs and the excess.”

Combs’s former girlfriend, Casandra Ventura, asked the judge in a letter of her own to consider “the many lives that Sean Combs has upended with his abuse and control.”

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– ‘Humbled and broken’ –

Ventura, the 39-year-old singer known as Cassie, testified for days while heavily pregnant.

She described in wrenching detail physical, emotional and sexual abuse she suffered while in a more than decade-long relationship with Combs.

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READ ALSO:Sean ‘Diddy’ Combs Reacts After Kanye West Calls For His Release From Prison

Ventura and another woman, identified as Jane, said they were coerced into performing so-called “freak-offs”: sexual marathons with hired men that Combs directed and sometimes filmed.

“The entire courtroom watched actual footage of Combs kicking and beating me as I tried to run away from a freak off in 2016,” Ventura wrote.

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People watched this footage dozens of times, seeing my body thrown to the ground, my hands over my head, curled into a fetal position to shield me from the worst blows,” she said, noting she has nightmares and flashbacks “on a regular, everyday basis.”

Ventura said she and her family had left the New York area for fear of “retribution” from Combs if he is released.

READ ALSO:Sean ‘Diddy’ Combs Reacts After Kanye West Calls For His Release From Prison

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The defense didn’t deny Combs’s sexual activity but insisted it was consensual.

They also didn’t deny Combs’s years of violence against both romantic partners as well as employees — but they said it didn’t meet the legal threshold for the grave charges he faced.

Jurors took their side.

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The conviction on lesser if still serious counts stemmed from a federal statute that makes it illegal to transport people across state lines for prostitution.

Combs has been incarcerated in Brooklyn for more than a year.

He said his time in prison has left him “reborn.”

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I have been humbled and broken to my core,” Combs wrote.
AFP

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