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

Published

2 years ago

June 22, 2022

Editor

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.

“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.

“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.

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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400 Bodies Found In Mass Grave In Gaza Hospital

Published

8 hours ago

April 28, 2024

Editor

The government in Gaza have concluded their search of mass graves at a hospital in the south of the strip and said they have uncovered a total of 392 bodies, including some still wearing surgical gowns.

Speaking at a Thursday news conference at Rafah, on April 25, an official from the Palestinian Civil Defense in Gaza said workers have identified 165 bodies at the Nasser Medical Complex in Khan Younis, following the withdrawal of Israeli forces from the area earlier this month.

According to Mohammed Al Mighayyer, they are still examining the remaining 227 bodies to determine their identities.

“We found three mass graves, the first in front of the morgue, the second behind the morgue, and the third north of the dialysis building,” he added.

The Israel Defense Forces (IDF) said any suggestion that it had buried Palestinian bodies in mass graves was false, and that a grave at the Nasser complex was dug by Palestinians in Gaza some months ago.

The Gaza Civil Defense acknowledged that around 100 bodies were buried in graves at the Nasser hospital before the IDF operation there.

CNN reports that people had buried the bodies of family members who had been killed on the grounds of the hospital as a temporary measure in January but when they returned after the Israeli military withdrew on April 7, they discovered the bodies had been dug up and then placed in at least one collective grave, not all in the initial spots they were buried in.

The Palestinian Civil Defense also showed graphic images on a TV screen at the news conference showing several almost unrecognizable bodies at the complex and bodies of decomposed children.

Al Mighayyer said the Civil Defense “witnessed the presence of children’s bodies in the mass graves at the Nasser Medical Complex, which proves crimes of genocide.” While the group says it is still examining the bodies, they suspect at least 20 civilians were buried alive in the complex, but it did not explain how it knows this, or offer proof.

Al Mighayyer also claimed there had been cases of executions of patients who had been receiving treatment at the hospital. He said several bodies were found with gunshot wounds to their heads and injuries to their bodies.

Al Mighayyer said at the news conference that the Palestinian Gaza Civil Defense in Gaza “discovered torture marks on [some] bodies.” CNN cannot independently verify these claims.

“Israeli forces buried several bodies in plastic bags at a depth of three meters, which made them decompose quickly.”

“The occupation deliberately concealed evidence of its crimes in the Nasser Complex by changing the plastic shrouds more than once,” he claimed. Video recorded by CNN shows bodies wrapped in three different coloured shrouds: white, black and blue.

Amnesty International has also called for an investigation into the mass graves at the two Gaza hospitals.

I’m response, the Israeli Defense Forces, IDF said:“During the IDF’s operation in the area of Nasser Hospital, in accordance with the effort to locate hostages and missing persons, corpses buried by Palestinians in the area of Nasser Hospital were examined. The examination was conducted in a careful manner and exclusively in places where intelligence indicated the possible presence of hostages.”

The IDF continued: “At the end of February, IDF forces conducted a precise and targeted operation against the terrorist organization Hamas in the Nasser Hospital area. During the operation, about 200 terrorists who were in the hospital were apprehended, medicines intended for Israeli hostages were found undelivered and unused, and a great deal of ammunition was confiscated. The activity was done in a targeted manner and without harming the hospital, the patients and the medical staff.”

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Watch Of Richest Titanic Passenger Sells For £1.17m

Published

10 hours ago

April 27, 2024

Editor

A gold watch found on the body of the richest passenger on the Titanic was auctioned in England for £1.17 million ($1.46 million) on Saturday.

It was a record sum for an object linked to the notorious 1912 shipping disaster, said auctioneers Henry Aldridge & Son.

A US buyer won the bidding war, smashing the auctioneer’s pre-sale estimate of between £100,000 and £150,000.

The watch, engraved with the initials JJA, belonged to the US business magnate John Jacob Astor.

Astor was 47 when he died as the Titanic sank in the early hours of April 15, 1912. He was reputed to be one of the richest men in the world at the time.

He died after having helped his wife, Madeleine, on board one of the lifeboats. She survived the disaster.

Astor’s body was found a week after the disaster, with the watch among his personal belongings.

“The watch itself was completely restored after being returned to Colonel Astor’s family and worn by his son,” said a statement from the auction house.

Headline

Popular Iraqi TikToker Umm Fahad Gunned Down Outside Baghdad Home

Published

10 hours ago

April 27, 2024

Editor

Popular Iraqi social media star Ghufran Sawadi, better known as Umm Fahad, was shot dead outside her home in Baghdad, the capital of Iraq, on Friday night.

According to CNN, a Baghdad police source disclosed that the attack occurred in the Zayouna area east of Baghdad.

The source added that the tragic incident was captured on video by a surveillance camera and shared on social media.

The video showed a gunman riding a motorcycle shooting and killing Sawadi on the spot. A Baghdad police source confirmed the authenticity of the video to CNN.

The country’s Interior Minister announced on Friday that it was “forming a specialized work team to find out the circumstances of the killing of a woman known on social media by unknown assailants.”

Sawadi was popular on TikTok, where she shared videos of herself dancing to pop music in form-fitting clothes. In the past, these videos were deemed inappropriate by Iraq’s judiciary.

Sawadi was sentenced to six months in prison for “the crime of producing and publishing several films and videos containing obscene and indecent language, violating public decency and morals,” an Iraqi judiciary statement said.

Other Iraqi social media personalities have previously been targeted in deadly attacks.

Most recently, another popular Iraqi TikTok personality, Noor Alsaffar, known as Noor BM, was shot dead in Baghdad in September 2023, an Iraqi security source told CNN at the time.

Alsaffar, who had over 370,000 followers across Instagram and TikTok, posted short videos about fashion, hair, and makeup, also often dancing to music.

Following news of the shooting, many posted comments lamenting Alsaffar’s death, though others applauded it, celebrating the man who fired the shot.

Alsaffar’s killing came as Iraq cracked down on LGBTQ expression and moved to criminalize it in law.