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January 16, 2024 States in Nigeria Spending Frivolously on Trips Despite Low Foreign Direct Investments

States in Nigeria Spending Frivolously on Trips Despite Low Foreign Direct Investments

14 Nigerian state governments have failed to attract any form of foreign direct investments despite spending at least N21.04bn on foreign trips in since Covid-19. The states in question include; Bauchi, Bayelsa, Benue, Borno, Cross River, Ebonyi, Edo, Gombe, Imo, Jigawa, Nasarawa, Taraba, Yobe, and Zamfara states. Between 2021 and the third quarter of 2023, these states failed to attract any of the $14.85bn that foreign investors channeled into Nigeria. Between 2021 and 2023, Bauchi spent N3.81bn on foreign trips without having anything to show for it. Bayelsa spent N1.99bn, Benue spent N1.33bn, Borno spent N1.73bn, Cross River spent N663.16m, Ebonyi spent N1.01bn, Edo spent N1.77bn, Gombe spent N32.09m, Imo spent N541.23m, Jigawa spent N1.10bn, Nasarawa spent N541.26m, Taraba spent N2.52bn, Yobe spent N1.24bn, and Zamfara spent N2.77bn. The figures for foreign trips were extracted from state budget performance reports sourced from Open Nigerian States. Many of the states didn’t have their full budget performance reports with some only having for two quarters in some cases. Kebbi did not also receive any foreign direct investments in the period under review but there was no data on the amount the state spent on foreign related trips hence its exclusion from this report. The lack of foreign investments in these states coincides with a general fall in investments into the country due to insecurity and other issues. The World Bank opined, “Net FDI inflows are negative, reflecting net withdrawals of equity by foreign investors. FDI and FPI flows into Nigeria do not compare favourably with similar economies of the world, reflecting difficulties with FX availability, security concerns, and other structural challenges in recent years.” Some of states in this report including Zamfara, Jigawa, and Nasarawa have been plagued by insecurity in recent years. In Zamfara for instance, banditry has become the order of the day with almost 14 local government areas of the state occupied by bandits.
August 18, 2023 We Do Not Trust State Governors to Share N180b Palliatives

We Do Not Trust State Governors to Share N180b Palliatives

The organised labour has knocked the Federal Government for releasing a N180bn palliative package to states to cushion the impact of the fuel subsidy removal. The Nigeria Labour Congress and the Trade Union Congress insisted that the governors could not be trusted, noting that politicians and not the poor would benefit from the N5bn largess given to each state government for disbursement to the citizens. The Federal Government on Thursday announced an N5bn palliative for each state of the federation and 180 trucks of rice as part of measures to assuage the pains of the subsidy removal. The policy, which led to sharp and multiple increases in fuel pump prices, has driven up the prices of goods and services, pushing millions of Nigerians into poverty and worsening the socio-economic situation in the country.
The development also triggered nationwide protests by organised labour which insisted on the repair of refineries as a precondition for the subsidy withdrawal. But announcing the release of the palliative at the end of the 135th National Economic Council meeting presided over by Vice President Kashim Shettima in Abuja, the Borno State Governor, Babagana Zulum, disclosed that the N5bn was to enable the state governments to procure 100,000 bags of rice, 40,000 bags of maize and fertilizers to cushion the effect of food shortage across the country. He added that considering the urgency in meeting the need to mitigate the skyrocketing food prices across the country, the Federal Government had last week released five trucks of rice to each state of the federation. Shettima explained, “NEC met today and expressed serious concerns as regards increasing cost of food items, increasing cost of transportation amongst others as a result of subsidy removal. In order to cushion the effect of subsidy removal, the federal government released five trucks of rice to each state last week. “Furthermore, in order to cushion the effect of food shortages across the country, the Federal Government has approved the sum of N5bn to be given to each state for the procurement of 100,000 bags of rice, 40,000 bags of maize, and fertilizers. “This funding has to be shared with a formula as follows: 52 percent of this money is given to states as grants, while 48 per cent of the N5bn is to be paid back on an installment basis within a period of 20 months to the CBN by the states and the local government areas in Nigeria. “The council commended the efforts of the Federal Government under the leadership of President Tinubu as well as the CBN. We have also commended the efforts of NEMA in cushioning the effects of the subsidy removal. “Council has taken bold decisions in order to ensure speedy release of grains and other items in order to cushion the effects of subsidy removal on the less privileged in the society.’’ He noted that the council took bold decisions in order to ensure the speedy release of grains and other items for immediate distribution to the less privileged in society. Shettima added, “The council has also taken note of the $800m loan and insists that it be strictly used for the intended purpose and based on an accurate and acceptable register. The $800m announced by the president will go to Nigerians in accordance with an accurate social register. “Furthermore, the council has also noted the package that was announced by the President in order to cushion the effect of subsidy removal, amounting to about N500bn. “This fund has to be distributed to the following sectors: MSMEs, industrial sector; about N125 billion will go for cash transfers, agricultural sector as well as gas expansion for buses. “And because of the increasing cost of fossil fuel, the federal government intends to establish more gas stations in Nigeria and procure more gas-powered buses, CNG buses as well as electric buses.” He said the council commended the efforts of the Federal Government and the CBN in addressing the current situation in the country.
May 12, 2023 President, Governors and Judges got N651m Hazard Allowance

President, Governors and Judges got N651m Hazard Allowance

According to the website of the Revenue Mobilisation and Fiscal Allocation Commission(RMFAC), the President,  Muhammadu Buhari and his Vicet Yemi Osinbajo, state governors, and their deputies as weell as Judges across the country have enjoyed about N651.2m hardship allowance in the last eight years of the Buhari administration. The hardship allowance, which is 50 per cent of the annual basic salary, is given to member of the executives and Judiciary. The RMAFC document disclosed that the president is entitled to N1.76m annually as a hardship allowance. This means that within a period of eight years, Buhari would have earned N14.08m as hardship allowance. The Vice President is entitled to N1.52m annually, which means that in eight years, Osinbajo would have earned N12.16m as hardship allowance. While a state governor is entitled to N1.11m annually, a deputy state governor is entitled to N1.06m. In eight years, the hardship allowance of the 36 state governors would have gulped N319.68m while that of their deputies would have gulped N305.28m. In comparison, Nigerians are asking who determines the level of hardship faced by citizens and how they are compensated.

Niger Delta Governors deny instigating NDDC probe.

Adebayo Samuel

The Akwa Ibom state Governor, and his counterparts in Imo and Delta states on Monday distanced themselves from claims that they were behind the order to probe the Niger Delta Development Commission NDDC, in order to hijack the commission.

President Muhammadu Buhari last week gave the order for a forensic probe of the NDDC to be conducted immediately, stating that such an investigation became necessary following public complaints against the interventionist agency.

Akwa Ibom State Governor, Governor Emmanuel Udom, described the claim that governors from the Niger Delta states were plotting to control the agency as baseless and unfounded.
Speaking through the state Commissioner for Information and Strategy, Mr Charles Udoh, Governor Udom expressed disappointment that despite being the highest revenue contributor to the national economy, not even a kilometre of road had been constructed by the NDDC in the state.

He said, “The allegations are totally baseless and unfounded. Akwa Ibom State contributes the highest revenue to the national purse, yet there is nothing in the state in terms of federal presence.

“One cannot point to a single kilometre of road constructed by the NDDC in the state; is that fair?”

Also, the Delta State Governor, Ifeanyi Okowa, explained that the decision to embark on a forensic probe of the interventionist agency was solely that of the Federal Government.

Okowa, who spoke through the state Commissioner for Information, Mr Charles Aniagwu, said, “It is the Federal Government’s decision; you cannot begin to say whether we are in support or not if the Federal Government wants to ask questions like it is doing in other sectors.

“If the Federal Government wants to look at those that it gave money to, it is its decision. “The most important thing is that Federal Government wants to look into their process.”

However, the Imo State Governor, Emeka Ihedioha, who spoke through his Special Adviser, Media, Mr. Steve Osuji, pointed out that President Buhari did not need the permission of governors of the Niger Delta to direct the probe of the NDDC.

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