35 states seek for FG’s ECA-backed loans

35 Nigerian states of has applied for the Excess Crude Account-backed loans, as part of bailouts, dished out by the Federal Government.

30 States have also benefited from the Federal Government’s salary bailout as at 18th May 2016.

The Central Bank Governor, Godwin Emefiele, made the disclosure while briefing the National Economic Council, chaired by Vice President Yemi Osinbajo.

At the meeting, the Minister of Finance, Kemi Adeosun informed the council that the balance on the Excess Crude Account stood at $2.3Billion (USD 2,259,688,878.06 billion) as at 30th April, 2016, disclosing that interest accrued on the account is USD 429,903.55 for the month of April 2016 experiencing a little drop in interest.

Last month, President Muhammadu Buhari approved the suspension of monthly deductions at source to give the governors some relief. As at May 1st about 26 states still owed its staff their monthly renumeration.

Briefing journalist after the council meeting, the Deputy Governor of Enugu state, Cecilia Ezeilo, who briefed alongside the deputy governor of Bayelsa, John Jonah, governor of Kogi state, Yahaya Bello and the budget and planning minister Udoma Udoma, said the Council also approved a Fiscal Sustainability Plan aimed at helping the states of the federation navigate the current economic conditions including a massive drop in Federation Account allocation funds.

In response to previous requests, the Honourable Minister of Finance made a presentation to the Council on Fiscal Sustainability Plan and Fiscal Framework for Sub-National Governments in Nigeria. This included: Five (5) key strategic objectives and recommended action points with a view to achieving objectives around improved fiscal behaviour that will align both short-term and long-term sustainability objectives of the Federal and State Governments.

The 5 key elements include: Accountability and Transparency; Increase in Public Revenue; Rationalisation of Public Expenditure; Public Financial Management Reforms; and Sustainable Debt Management.

Council received a report by the Deputy Governor of Bayelsa, John Jonah, on crude oil theft, prevention and control.

He said the Committee on oil theft set-up sometime in 2013, had consulted widely with relevant stakeholders including the Armed Forces Joint Task Force (JTF), Oil Companies, Oil Producing States, Nigerian Security and Civil Defence Corps (NSCDC) presented some key findings as to the causes of crude oil theft include: Some of their findings include: Inadequate operational patrol vessels to conduct patrol of entire pipeline network; Massive unemployment among youths in the region attributed to increasing incidence of theft and vandalism; Non
availability of petroleum products in the Niger Delta Area, which they say is also responsible for reoccurrence illegal bunkering.

The committee recommended the Procurement and deployment of appropriate technology in surveillance and combat vehicles/boats in difficult terrain would drastically reduce incidents of oil thefts and illegal bunkering and this would ensure full benefits of uninterrupted supply.

They also recommended that the Federal Government should set up special courts for speedy prosecution of oil bunkerers and oil theft suspects, as well as engage traditional rulers to sensitize their communities on the criminal and environmental dangers of oil theft.

Part of the way forward ,Jonah said include to increase the refining capacity of the domestic refineries through relocation/co-locating smaller cost-efficient refineries within time frame of 12 – 24 months;
Focus on restoring upstream production by positively engaging host communities to put the current militancy to an end; Focus on improving Government funding in the upstream sector where funding has been less than 30%; Relieve Government of monthly cash-call funding and create a sustainable self-funding arrangement; Continue to engage the general
public and all stakeholders by providing relevant information and education.

Osinbajo who is the Chairman of Council, informed members that the President has approved the reconstitution of the board, which will be effected in due course.

 

Elizabeth Archibong