Get N100m as monthly allocation To meet Buhari
NEC approves $150m for federal, states, LGs
By Abdullahi M. Gulloma
Abuja
After several months of politicking over the nation’s state of economy, the 36 governors yesterday faced the reality of the situation and cried out in unison that times are hard and that they can no longer pay salaries of the workforce and meet other obligations in their various states.
Worst still, they said some of them have as take-home, a meagre N100 million as monthly allocation, even when there is an over N2 billion wage bill to pick at the end of the month.
Although there was some reprieve yesterday as the National Economic Council okayed the sharing of US$150 million, the governors nevertheless resolved to still meet with President Muhammadu Buhari on the way-out of the nation’s current economic predicament.
These formed some of the highlights of the meeting of the Nigeria Governors’ Forum which came up yesterday in Abuja.
Announcing the meeting’s resolve in a communiqué issued by the governors, NGF chairman and Governor of Zamfara state, Mr. Abdulaziz Yari, said state governments could no longer bear the N18, 000 minimum wages, which the governors said, was imposed on them when oil was sold for $126 as against its present cost of $41.
He said the governors resolved to diversify the economy with proper attention on agriculture and mining as a way out of the current challenges confronting the states.
The communiqué reads: “We resolved that we must look at ways to enhance revenue generation and at the same time look at ways to cut our overhead costs, more especially the political office holders’ salaries and other overhead expenses.
“The situation is no longer the same when we were asked to pay N18,000 minimum wage, when oil price was $126 (per barrel) and continued paying N18,000 minimum wage when the oil is $41 and the source of government expenditure is from oil, and we have not seen prospects in the oil industry in the near future.
“We will diversify our economy in the area of agriculture and mining. But at the same time, we should understand our situation where some of us (states) today are taking N100 million take-home (monthly allocation) and they have salaries in particular of over N2 billion to pay.
“We, therefore, agreed here to take this suggestion to NEC in our meeting tomorrow (Thursday) so that we can be able to find ways to tackle this problem.
“And we are looking at coming together to discussing with Mr. President and his team, with governors, technocrats and experts in the economy to see how we can tackle our troubled situation. We are working harder to deal with it.”
Yari also told journalists that the meeting also deliberated on the N2.1trillion fine imposed on MTN, the telecommunication giant by the Nigerian Communi-cations Commission (NCC), and agreed to ensure that the company pays the penalty in full.
He said the governors took the decision after a briefing by the Acting Executive Chairman/Chief Executive Officer of NCC, Professor Umar Dambata.
The NGF, according to him, congratulated Dambata on his appointment and commended the regulatory agency for “its strict compliance and enforcement of the law with regards to the fine issued to MTN and advised the federal government to ensure prompt and full payment.”
Meanwhile, the NEC has approved the distribution of $150 million among the three tiers of government out of the $400 million dividends paid by the Nigerian Liquefied Natural Gas (NLNG).
Governor Rauf Aregbesola of Osun state, who disclosed this to State House correspondents yesterday at the end of the monthly NEC meeting in Abuja, said the council also directed that the sum of $250 million from the dividends be invested in the Nigeria Sovereign Investment Authority (NSIA).
He said the decision was taken following a status report of the NSIA presented to the council by its Managing Director, Mr. Uche Orji.
“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,” he said.
Aregbesola said the council also directed the Minister of Finance, Kemi Adeosun, 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 when the current board is dissolved.
He said the Accountant-General of the Federation, Idris Ahmed, reported that the balance of the Excess Crude Account (ECA) stood at $2.257 billion and that not much changed from the last report.
On the report of government agencies generating revenues in foreign currency but remitting Naira equivalent into the Federation Account, the governor said the council mandated the Ministry of Finance to investigate and report back.
He said the Central Bank of Nigeria (CBN) has been mandated to embark on sensitization and public enlightenment on the forex policy and relevant laws and regulations so as to guide traders and some people who encounter challenges regarding the movement of foreign currency across the nation’s borders.
On the contributory pension scheme, the governor said the Director General of National Pension Commission (PENCOM), Chinelo Anohu-Amazu, briefed the council on the scheme implementation effort and status of implementation by the states.
He said the briefing centred 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 the steps towards full implementation by the states, among others.
The council also deliberated on the need to reconstitute the governing board of the Niger Delta Power Holding Company following which the Vice President, Professor Yemi Osinbajo, called for the nomination of new board members based on the six geo-political zones.
