The three Nigerian tiers of government: the Federal, States and Local Government Councils, have shared a total of N4.37 trillion from the Federation Account as statutory revenue allocations between January and June 2023, according to the latest report by the Nigeria Extractive Industries Transparency Initiative (NEITI) on the Federation Account revenue allocations for the first half of the year.
The Executive Secretary of NEITI, Dr. Orji Ogbonnanya Orji, who announced the report in Abuja, said that total distributable FAAC allocations to the three tiers of government in the first and second quarters (Q2) of 2023 stood at N2.32 trillion and N2.04 trillion respectively.
The NEITI quarterly review revealed that inflows into the Federation Account in Q2 of 2023 declined by 23 per cent, affecting the distributable revenue which fell by 12 per cent when compared with the total revenue disbursed in the first quarter.
“Each tier of government received more than N1 trillion over the six-month period.”
According to the report, a breakdown of the revenue receipts showed that the federal government received about N1.78 trillion, or 40.7 per cent, while the State governments received N1.5 trillion, or 34.5 per cent.
The report said that the Local government councils received N1.08 trillion or 24.8 per cent of the total distributable revenue for the period.
It said that a comparative analysis of the total allocations on a year-on-year basis in the corresponding quarters of 2022 and 2023 showed that the distributable revenue of N4.366 trillion shared was higher by 16.7 per cent from about N4.05 trillion shared in 2022.
It said that the allocation received by the federal government over the period under review increased by 19.8 per cent to N1.78 trillion in 2023, from the N1.48 trillion in the corresponding period in 2022.
The report said that allocations to the State governments grew by about 11.2 per cent to N1.42 trillion in 2023 from N1.26 trillion in 2022, while allocations to the LGs rose by 16.8 per cent to N1.08 trillion in 2023, from N926 billion in 2022.
The increase in half-yearly allocations in 2023 was consistent with an upward trend from the previous period where the distributable revenue for the first half of the year rose by 16.7 per cent, from N3.47 trillion between January and June 2021 to N4.05 trillion in the corresponding period in 2022.
Also , allocations to the federal, states and LGs increased across board by 8.8 per cent 26.5 per cent and 14.2 per cent respectively.
However, compared to the same period in 2022, it said the report showed that FAAC distribution in Q2 declined in absolute value with total distributable revenue of N2.02 trillion being less by 13 per cent than about N2.16 trillion distributed in the second quarter of 2022.
It said that further analysis of the disbursements to the states showed that Delta state received the highest allocation of N102.79 billion in the second quarter of 2023, followed by Akwa Ibom’s N70.01 billion, Rivers N69.73 billion, Lagos N60.64 billion and Bayelsa N56.34 billion.
It said that the total disbursements to the five states (N359.5 billion), or 35.9 per cent of the total FAAC allocations, was more than the total allocations to the next 15 states (N349.3 billion).
It said that the cumulative allocation to the five states is also more than the share of allocation to 19 other states put together, adding that the bottom 10 states received 17.3 per cent of the revenue shared in the second quarter of 2023.
According to the report, Nasarawa, Ebonyi, Ekiti, Gombe and Taraba states received the lowest allocations of N16.71 billion, N16.84 billion, N16.95 billion, N17.22 billion and N17.45 billion respectively.
It said that four of the five states with the highest allocations, except Lagos, received a significant share of 13 per cent derivation revenue allocated to oil-producing states.
It said that the total disbursements to these five states (N359.5 billion), or 35.9 per cent of the total FAAC allocations, was more than the total allocations to the next 15 states (N349.3 billion), while the cumulative allocation to the five states was also more than the share of allocation to 19 other states.
It added that the bottom 10 states received 17.3 per cent of the revenue shared in the second quarter of 2023.
It stated that the bulk of the revenues to the federation account came from remittances from the three main revenue-generating agencies.
It listed them as the Nigeria Upstream Petroleum Regulatory Commission, the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS).
It explained that these revenues came through earnings from the different revenue streams, including oil and gas royalties, petroleum profit tax, company income tax, value added tax and import and excise duties.
“Also, revenue remittances of about N1.84 trillion in Q2 2023 came from mineral and non-mineral sources, comprising of N809 billion, or 44 per cent from mineral revenue (mostly oil and gas) and N1.03 trillion, or 56 per cent from non-mineral sources.
The report revealed a huge gap between revenue disbursements from the oil and gas and solid minerals sectors, pointing out that this was a reflection of the perennial underperformance of the latter over the years.
“In terms of debt service obligations and the impacts on states’ net allocations, the report showed that Lagos topped the list of 36 states with a total deduction of N9.03 billion in the second quarter of 2023, followed by Delta (N6.76 billion), Ogun (N6.10 billion), Kaduna (N5.63 billion), Osun (N5.60 billion and Imo (N5.51 billion).
“Jigawa, Anambra, Nassarawa, Kebbi and Enugu States had the lowest deductions of N1.16 billion, N1.29 billion, N1.45 billion, N1.51 billion and N1.88 billion respectively.
“The nine oil-producing states, according to the report, namely Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo and Rivers states received allocations relative to their share of the oil and gas as well as other minerals extracted from their domains.”
It projected that with efficient, prudent management and utilisation of the savings of N3.6Trillion from subsidy payment in the first six months of 2023, Nigeria’s balance of payments would be boosted as demand which was served entirely by product importation would be curtailed.
It said that the drop in demand would inadvertently, trigger a corresponding reduction in the dollar volume needed to pay for premium motor spirit (PMS), which constituted the largest single import product by value,” he said.
The report welcomed with high expectations, the unification and the floating of the exchange rate policy recently introduced to strengthen and stabilise the economy.
“With the average exchange rate of N713.69 to US$1, which is about 55 per cent higher than the rate of N460.52 to the dollar recorded during Q2 will significantly raise the value of export earnings remitted to the Federation Account by more than 50 per cent.
“Also earnings from the new exchange rate through exports will also increase the value of foreign capital inflows, including investments, loans and grants,” it recommended.
The report also urged the Central Bank of Nigeria to prioritise policies to stabilise the exchange rate to facilitate the effective implementation of the deregulation policy and stabilise foreign exchange-dependent inflows into the Federation Account.
Source: NAN
Media In Politics: Tinubu Example By Abiodun Komolafe
The marriage or inclusion of the media in politics is inevitable. The only credible institutional link between the government and the people, other social institutions and the masses is so interwoven with the reality of the society that, when Bola Ahmed Tinubu started his own media outfits, he had already known what he wanted before setting out for it. It’s not just for self but for the sake of legacy. Tinubu never attempted to discourage deferring opinions. Thus, the future 16th president of Nigeria started out with credible and tested personalities in the media business. He harvested a list of the best in the field and was willing to play by the rules, the first of which was _‘there shall be no compromise’,_ because compromise might end up being the ruination of the entire buildup. Of course, once society recognizes that simple-but-important attribute of compromise, it takes whatever one says with a pinch of salt; and credibility, which is the bone of the entire project, runs out.
Talking about funding, Tinubu realized early in life that media as a project was a long-term investment, not one haphazard approach in structure or texture. In fairness to posterity, he has sufficient money and he was willing to spend it, long-term. Is it any wonder that his media outfits are still out there, _‘gidigba’,_ like the rock of Gibraltar?
On Research and Development, no matter whose ox is gored, Tinubu’s media outfits are ready to research anything without minding the outcome; and the resources to execute such a project is never in short supply. This explains his media relevance in the scheme of things in the Nigerian society, today, tomorrow and years to come.
As a democrat, Tinubu has never attempted to muscle the opponents out. The facts are out there for all to see. His Editorial Board at The Nation newspaper is perhaps the freest in Nigeria. Whatever sympathy each member of the Board expresses belongs to him or her. In other words, no one can claim that those expressions or desires belong to its promoter.
Tinubu is never afraid of other ideas blossoming; and this is key! As a matter of fact, the _‘Jagaban of Borgu Kingdom’,_ now our president, enjoys that aspect of human relations. As we know, when one is afraid that other ideas will fly, panic mode sets in. Competitive ideas make Tinubu dig deeper, to look for the best in the industry so as to have the best ideas in a particular area. And, once money can purchase it, and that thing is relevant to his cause, one can rest assured that he will surely have it, unless it’s no longer relevant to him. Irrespective of other sentiments, these attributes are responsible for the solid media establishment that he has. Anyone who wants to emulate him will have to understudy his organizational prowess and management style before venturing into it. Instead of attacking him, or his media team, please understudy the man!
It’s unfortunate that some Nigerians are wasting their time attacking Tinubu, because, even if they succeed at the end of the day – and that’s a big ‘if’- what do they stand to gain? Some people said the Asiwaju of Lagos never went to school. Now, they have changed gear; they are saying his academic records are not straight. If we may ask, whose fault is that? If his records are not straight as they are claiming, why not press charges against the institution that has in any case never said that the president was never one of its students? Anyway, that’s the sad side of a society that is as complex as ours! Obviously, that’s why the opposition’s obsession is on the president.
For a media team to be successful, the outlook must never be parochial, sectional or regional; or show religious inclinations – as in the case of Nigeria. Once these are avoided, the sky is the limit for such a media team. It is important to note that there’s no Nigerian tribe that has no representation in Tinubu’s media team. If it were to be only a Yoruba project, there would have been serious troubles; and were the Igbos to have dominated it, it would have shown a bend. The Northerners are also represented, but certainly not in a frightening manner. Of course, these are the things to watch out for in a media team so that when the battle kick-starts, it will be on a plain ground.
In the calibration and composition of media content, humanity must never be left out. Granted the media setup must have been directed at a goal, a purpose, yet one cannot rub it off the essence of humanity which is the focus. Even when not in government, Tinubu Media Office was stronger, better funded and more alive to its responsibilities than most of the state governments’ and public-funded media establishments. Have we asked why his media outfits – TVC and others – became targets of attack during _#EnSARS?_
Over the years, the media has reinvented – and, it’s still reinventing – itself. The backstage era of Babatunde Jose has long taken a detour. Modern times are here. The standard has changed. Professionalism has also increased. But the cost of production has also gone up vis-à-vis poverty and corruption. Likewise, divergence of interests in the Nigerian society has taken its toll on the integrity of the media profile and public space. Therefore, understanding the roles of the media in Nigeria must take into recognition the diverse factors earlier mentioned. The fear of the publishers to publish is sometimes regarded as wisdom. In a non-conducive atmosphere, the expected profit margin of the news media is crucial and should weigh-in higher on the decision to publish. If society is no longer appreciative of a publication, why publish?
Expectedly, the media establishment, in whatever form it is, must be ready to come under attacks and criticisms. Of course, that’s why it cannot afford to lose its guard but must remain a veritable warehouse where news is scrutinized. Also, the state and society must never lose confidence in the media; otherwise, society goes to the dogs. Attitudinal disposition of the media operatives must always be in check; and this is not just about money but also the contents and ideas espoused by the individual. Globally, social dynamics is in so much flux that ideology can no longer be easily formulated or tested for validity.
According to Peter Drucker, _“leadership is lifting a person’s vision to high sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations.”_ The Bola Tinubus of this world have done their best. They have shown that _“opportunity dances with those who are already on the dance floor”._ They have also demonstrated how _“ideas”_ could be _”great arrows”,_ how to get _“a bow”;_ and how _“politics”_ could be _“the bow of idealism.”_ So, let society collaborate by being active in its civic responsibilities of cross-checking news and validating the same. Absence, inaccurate and/or inadequate dissemination of real facts will surely give room for fake news to blossom, forcing a media team into damage control occupation. That’s what keeps the media on its toes and keeps it from going rogue.
May the Lamb of God, who takes away the sin of the world, grant us peace in Nigeria!
_•KOMOLAFE writes in from Ijebu-Jesa, Osun State, Nigeria (ijebujesa@yahoo.co.uk; 08098614418 – SMS only)