NLNG dividends: FG, States to share $150m, invest $250m in NSIA

The National Economic Council, Thursday approved the sharing of $150million (N33billion) between the three tiers of government and an investment of $250million (N55billion) into the Nigerian Sovereign Investment Authority to the council, from the $400m Nigeria Liquefied Natural Gas (NLNG) dividend.

NEC also approved that the Minister of Finance commence shopping for a new set of board members to take over the running of the fund when the current board is dissolved.

The $150 million to be shared to states is considered some form of bailout, as the governors had previous night after a meeting lamented that they could still not keep up with payment of salaries, especially the N18,000 minimum wage.

Briefing journalists after the council meeting, Osun State governor, Rauf Aregbesola, alongside Enugu State governor Ifeanyi Uguanyi, deputy governor Nasarawa state and the minister of National Planning, Udo Udoma, said it was resolved that after the investing in NSIA, the balance of $150m of the should be shared accordingly in the prescribed
formulae at the Federation Account.

The Managing Director of the Sovereign Wealth Fund Authority, Uche Orji presented the status report on the Nigerian Sovereign Investment Authority to the council. “

After due deliberations on the report, the council agreed that $250m from the $400m LNG dividend be invested in the Nigerian Sovereign Investment Authority to increase its capital. Council directed the Minister of Finance to constitute an executive nomination committee and work in consultation with NEC to appoint appropriate persons to take over as board members of the NSIA of the current board is dissolved” he said.

He said the Accountant-General of the Federation reported to Council that the balance of the ECA stood at $2.257bn, no significant change from the last report.

On the report of government agencies generating revenues in foreign currency but remitting naira equivalent into the federation account, the council mandated the Ministry of Finance to investigate and report back.

Council mandated the Central Bank of Nigeria to embark on sensitisation and public enlightenment on the forex policy and relevant laws and regulations to guide traders and others, who
encounter challenges regarding the movement of foreign currency across the nation’s borders. “We understood that some traders particularly in the East encounter challenges at the airports when they intend to go about their businesses” he said.

The DG of National Pensions Commission, Chinelu Anohu-Amazu briefed the council on the contributory pension scheme implementation effort and status of implementation by the states. Highlight of the briefing was on the sustainability of the pension arrangement, scorecards of the states in the implementation of the scheme, the challenges being faced by the states, opportunities and also the steps towards full implementation by the states.

The briefing also highlighted the need for the states to provide legal frameworks such as enacting state pension laws by those who have not done so, establishment of states pension agencies, consistent remittance of both employees and employers contributions and also full compliance of all provisions of the pension scheme.

Council also deliberated on the need to reconstitute the members of the governing board of the Niger Delta Power Holding Company was discussed and the Vice President called for the nomination of new board members based on the six geo political zones.

At the end of the NEC meeting, a workshop was organised for the state governors on the implementation of the Treasury Single Account (TSA) in states. The IMF Senior Resident Representative presented a paper on the TSA to the council. Presentations were made on the listed sub topics: implementation of TSA in states: lessons and experience; cash
management and TSA reform: an overview of international practice; and budgeting reforms.

 

Elizabeth Archibong