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States To Lose N19bn In Oil, Gas Revenues In 2022 – World Bank

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The World Bank has said that Nigerian states will likely lose N18.8bn in oil and gas revenues in 2022, as worsening revenue collection at the federation level increases budgetary pressures for the states.

The Washington-based bank said this in its Nigeria Development Update report, titled, ‘The Continuing Urgency of Business Unusual’.

According to the lending bank, the declining revenue from the federation level had put many states in a precarious fiscal position.

The bank warned that many states would be unable to meet up with their expenditures, adding that there was an increase in debt servicing expenditures of States.

The report read in part, “With net oil and gas revenues stagnating, most states will not be able to achieve their intended levels of expenditures in 2022.

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READ ALSO: World Bank To FG: You Won’t Succeed In Lifting 100m Nigerians Out Of Poverty, If…

“In addition, debt servicing expenditures at the state level are also mounting due to a decline in gross statutory account revenue transfers from the federation account allocation committee, which comprises oil and non-value added tax, non-oil revenues.”

The bank further said that the expected higher VAT collection or improvements in independently generated revenues would not compensate for the lower transfers from the Federation Accounts Allocation Committee in 2022.

The financial institution also warned that there would be a 2.7 per cent decline in FAAC transfers in 2022 when compared to 2021, adding that this decline would push states to borrow more and slash discretionary expenditure.

“Stagnating net oil revenues will significantly affect the fiscal situation at the state level. State governments are projected to collectively receive 2.7 per cent fewer revenues than in 2021, as federal transfers are estimated to decline by 10 per cent against 2020 levels.

“Lower transfers will cause state governments to incur debt or drastically slash discretionary expenditure. Although states receive the majority of VAT revenues, VAT increases would not make up for the loss of net oil revenues.

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“As a result, in 2022, the average state in Nigeria will lose N18.8bn in oil and gas revenues, while optimistic projections place average gains from VAT and the electronic money transfer Levy at N7.1bn per state, and average increases in each state’s independent revenues at N6.7bn. As a result, the average state can expect to lose N5bn in revenue in 2022,” the report stated.

The PUNCH reported that the Nigerian National Petroleum Company Limited might deduct over N1tn in the next six months from the Federation Accounts Allocation Committee, following the decision of the Federal Government to continue subsidising Premium Motor Spirit, popularly called petrol.

Figures obtained from the oil firm on its subsidy deductions in 2021 indicated that the amount deducted monthly from FAAC by the NNPC was higher during the periods of higher crude oil prices.

This was also confirmed by economists, who explained that the higher the international price of crude oil, the higher the amount to be deducted by the NNPC from FAAC.

Of course, the NNPC will spend more on subsidies this year because crude oil price has been increasing and the higher the price of crude, the higher the amount to be spent on subsidy,” the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said.

READ ALSO: Why World Bank Terminates N27b NEWMAP Project In Abia Revealed

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He added, “In fact, about N2.5tn might be spent on subsidy this year, meaning that about half of that amount could be spent in six months and this means hard times for states because the funds will be deducted from FAAC as usual.

“Some states would struggle to pay salaries, especially states that are heavily dependent on federal allocation. Some may have to lay off some of their work force. Many will struggle to meet their financial obligations as sub-nationals.”

A political economist and former presidential candidate, Prof Pat Utomi, urged states to create an environment for wealth creation rather than depend solely on the federal allocation.

He said, “States must focus more on creating the environment for wealth creation. If you go back to the late 50s and early 60s, most of the developments that took place in Nigeria are from the subnational governments. They collected the revenues, and send 50 per cent of it to the centre but the military ruined all of that.

PUNCH

 

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[JUST IN] Okuama Killings: Army Declares Eight Persons Wanted [FULL LIST]

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The Nigerian Army has declared Eight persons wanted in connection with the killing of 17 soldiers in the Okuama community in Delta state.

The Nigerian Army disclosed this on its official X account on Thursday.

The persons declared wanted include seven men and one woman.

Full list:

They are Akevwru Daniel Omotegbono, Prof Ekpekpo Arthur, Andaowei Dennis Bakriki, Igoli Ebi (female), Akata Malawa David, Sinclear Oliki, Clement Ikolo Oghenerukevwe and Reuben Baru.

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Okuama killings: Background
The suspected mastermind of the bloodbath, a militant leader, and his gang members, who are currently on the run, seem to have their operational stamping ground at Igbomotoru, a riverside community in the Southern-Ijaw Local Government Area of Bayelsa State.

However, the Nigerian Army, which has spread its dragnet for the fleeing suspects, went as far as Port-Harcourt, Rivers State, to pick up three persons, last Tuesday, in connection with the killing of the soldiers.

READ ALSO: Delta Killings: Military Sets To Build Barracks On Okuama As Demolition Of Houses Continues

So far, the demanding search for the killers of the soldiers in the quiet Okuama has spread to the creeks, hideouts, and communities in Delta State, Bayelsa, and Rivers states, and is likely to extend to other states in the Niger-Delta, and outside the region if need be, according to sources.

According to VANGUARD, many believe the killing of the soldiers was beyond the land dispute between Okuama and Okoloba in the Bomadi local government area, as insiders point to divergences on oil bunkering.

Lt. Col Ali was reportedly bent on stopping oil thieves in his operational area and had made appreciable inroads. There was suspicion that his killing with other military personnel could be a setup.

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We know who did it – General Musa, CDS

The Chief of the Defense Staff, CDS, General Christopher Gwabin Musa, who had given his troops marching orders to track down the killers, alluded to this notion.

Musa said: “I know him, the C.O himself, Lt. Col. Ali. Because of recent, we emphasized that we want oil production in Nigeria to increase so that we will be able to have enough foreign exchange for things to go down. Because we all know the challenges we are facing.

READ ALSO: Okuoma Ambush: Troops Recover Decomposing Hearts Of Killed Soldiers

“And so, he insisted that all illegal activities within his general area must stop. He directed all the troops and they were stopping illegal bunkering, and then these are the people benefiting from it. And so when this issue came up, it became an opportunity for them to do away with him, which is exactly what happened.

“We know who did it, we are following up on him, and it is just a matter of time, we are sure we are going to get him. They took away our arms, we must get those arms back, and we must get these guys so that they would be prosecuted accordingly.”

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From our findings, the countryside people of Okuama are not sophisticated enough to carry out this kind of attack on military officers.

And from the CDS declaration that “we know who did it..,” he confirmed that the premeditated killing was connected to oil bunkering, so why did the troops go after helpless Okuama women and children, and even razed the community?

However, the Army, on Friday, admitted knowledge of the viral video by a militant leader who confessed to participating in killing the 16 soldiers.

It noted: “The video among other things helps to narrow investigation to persons of interest and their cohorts.

“Accordingly, the state governments and host communities of these personalities are required to assist investigation in flushing out these culprits.

“There can be no hiding place for perpetrators of such dastardly act against the nation. This is a clarion call to duty by members of those communities and the state governments”.

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Iran Sentences Police Officer To Death For Killing Protester

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An Iranian court has sentenced a police chief in northern Iran to death after he was charged with killing a man during mass protests in 2022, local media reported Wednesday.

Local police chief Jafar Javanmardi was arrested in December 2022 over the killing of a protester during the widespread demonstrations sparked by the death of Mahsa Amini in custody.

Iranian Kurd Amini, 22, died in custody in September that year following her arrest for allegedly violating the country’s strict dress code for women.

READ ALSO: Tinubu Orders Army To Pay Slain Soldiers’ Benefits Within 90 Days

Javanmardi was sentenced to death “in accordance with the Islamic law of retribution, known as the ‘qisas’ law, on the charge of premeditated murder”, the lawyer for the victim’s family, Majid Ahmadi, told the reformist Shargh daily.

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The protestor, Mehran Samak, 27, succumbed to injuries he sustained after being hit by shotgun pellets during a rally in the northern city of Bandar Anzali on November 30, 2022.

Rights groups based outside of Iran said Samak was shot dead by Iranian security forces after honking his car horn in celebration of Iran’s loss to the United States in the 2022 World Cup held in Qatar while at the Amini protest.

READ ALSO: Tinubu Appoints Coordinator For Centre For Control Of Small Arms

The defeat eliminated Iran from the football tournament and drew a mixed response from government supporters and opponents.

The lawyer, Ahmadi, said at the time that the police official was charged with “violating the rules for firearms usage, resulting in the death of Samak”.

In mid-January, the judiciary’s Mizan Online website said the Supreme Court had annulled a death sentence and referred the case to another court.

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Gilan province, where Bandar Anzali is located, was a flashpoint of the nationwide protest movement that shook Iran.

Hundreds of people were killed during the months-long protests, including dozens of security forces, while thousands were arrested and nine men were executed in cases linked to the demonstrations.

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Tinubu Forms Economic Coordination Council, Names Dangote, Elumelu As Members [See full list]

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President Bola Tinubu on Wednesday, announced the establishment of the Presidential Economic Coordination Council, PECC, and the creation of the Economic Management Team Emergency Taskforce, EET, comprising public and private sector economic policy experts across board.

This was made public via a statement issued by the Special Adviser to the President on Media and Publicity, Chief Ajuri Ngelale in Abuja.

According to the presidential spokesman, the establishment of the economic team is a strategic move to bolster the nation’s economic governance frameworks and ensure robust and coordinated economic planning and implementation.

READ ALSO: Full Text Of President Tinubu’s Speech At Burial Ceremony Of 17 Slain Soldiers

The Presidential Economic Coordination Council, PECC, comprises distinguished leaders and key government officials, including: President of the Federal Republic of Nigeria – Chairman of the PECC, Vice-President of the Federal Republic of Nigeria – Vice-Chairman of the PECC / NEC Chairman, President of the Nigerian Senate and the Chairman, Nigeria Governors’ Forum.

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Others are Coordinating Minister for the Economy and Minister of Finance, Governor of the Central Bank of Nigeria, Minister of Agriculture and Food Security, Minister of Aviation and Aerospace Development, Minister of Budget and Economic Planning, Minister of Communications, Innovation and Digital Economy and Minister of Industry, Trade and Investment.

Also members are the Minister of Labour and Employment, Minister of Marine and Blue Economy, Minister of Power, Minister of State, Petroleum Resources, Minister of State, Gas Minister of Transportation and the Minister of Works.

The statement revealed that the PECC will also comprise key members of the organized private sector, with the following members joining for a period not exceeding one year, subject to the President’s directive: Alhaji Aliko Dangote, Mr. Tony Elumelu, Alhaji Abdulsamad Rabiu, Ms. Amina Maina, Mr. Begun Ajayi-Kadir, Mrs. Funke Okpeke, Dr. Doyin Salami, Mr. Patrick Okigbo, Mr. Kola Adesina, Mr. Segun Agbaje, Mr. Chidi Ajaere, Mr. Abdulkadir Aliu and Mr. Rasheed Sarumi.

READ ALSO: Tinubu Gives Scholarships, Houses To Children, Families Of 17 Soldiers Killed In Delta

Furthermore, in his determination to address immediate economic challenges and ensure the streamlined execution of economic strategies, President Bola Tinubu has established the Economic Management Team Emergency Taskforce (EET) with a mandate to formulate and implement a consolidated emergency economic plan.

The taskforce, chaired by Minister of Finance, Wale Edun, comprises key government officials and industry leaders in furtherance of the President’s collaborative approach toward achieving economic resilience and growth.

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The EET is now mandated to submit a comprehensive plan of economic interventions for 2024 to the PECC, covering the next six (6) months, for immediate implementation within two weeks of its inauguration”, the statement said.

The EET will meet twice weekly and is composed of the Coordinating Minister for the Economy and Minister of Finance (Chairman of the EET), Minister of Budget and Economic Planning, Minister of Power, Minister of Agriculture and Food Security, and Coordinating Minister of Health and Social Welfare

Others are the Minister of Industry, Trade and Investment, Governor of the Central Bank of Nigeria, National Security Adviser, Chairman, Nigeria Governors’ Forum, Governor of Anambra State, Governor of Ogun State and the Governor of Niger State Other members are, the Executive Chairman, Federal Inland Revenue Service, Director-General, Budget Office of the Federation, GCEO, NNPC Limited, Director-General, Nigeria Economic Summit Group, Special Adviser to the President on Energy, Dr. Bismarck Rewane, Economist and Dr. Suleyman Ndanusa, Economist.

 

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