FG Shares $1.7bn with states, LGs

In its bid to cushion the effect of the harsh economy on the three tiers of government, $1.7billion or N391billion has been penned for sharing from the Excess Crude Account.

Accountant General of the Federation (AGF) Ahmed Idris, claimed that was the amount left in the treasury by the outgone Goodluck Jonathan administration.

States have sought bail out from the  Federal Government in their bids to settle several months outstanding salaries to their personnel, in addition to other needs

If the amount is shared by the 36 states, it will leave $300million in the account.

Edo state governor, Adams Oshiomole had while briefing journalists after the National Economic Council (NEC) meeting last Tuesday, announced that the country currently had $2.0 billion in the excess crude account.

Idris spoke after a session with President Muhammadu Buhari, at the Presidential Villa alongside permanent secretaries from ministries, who came to clarify issues in the handover notes, as well get the policy drift of the current administration.

Idris said “ The Federation Account Allocation Committee (FAAC) is going to meet, and we are going to distribute as agreed and directed by the NEC and the position is very clear, what we met on ground is what we are going to distribute.

“What is on ground hovers around $1.6 to $1.7 billion, and that is what we are going to distribute among all the three tiers of government, the federal, states and local governments, based on the approved formula”.

Idris refers to the direction of the President, which he said was “prudent management of resources” as well identifying  alternative ways of generating revenue, and good management of the “meager resources” .

Anastasia Daniel Nwobia,  permanent secretary in the Finance Ministry assured that Nigeria’s finances were in a good state despite challenges resulting from the drop in oil prices.

Nigeria’s naira has currently dropped from N199 to N230 to a dollar in the parallel market.

“The state of Nigeria’s finances is okay, our finances are still okay, though we are still going through challenges of revenue stream to government, and this is obviously from the oil shock that has significantly reduced the revenue stream to government.”

She assured that options were being considered to “shore up the revenue to meet our expenditure” .

She hinted of clarifications on several issues in the handover notes so that the President  would give them a clear direction on how to run the ministry.

“Though handing over notes were presented, I think discussing the handing over notes and clarifying certain issues in the handing over notes is very important and that is what we have done with Mr. President and at this briefing you have a bit of insights on how he wants you to run the ministry in the interim.”

On subsidy payment, she said the government had not reneged on its decision to pay, but was still carrying out verification to ascertain the differential, before commencing payment.

“We did not say that we will not pay subsidy, like the former minister said, there is a liability on subsidy, which is being verified by the CBN and Budget Office of the Federation . The issue had to do with the forex differentials which they were claiming and this committee is looking into it, and as soon as it is resolved, we will be able to pay the verified amount”.

Elizabeth Archibong