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
Resurgence Of Coups In Africa And Panacea For Peace, By Hassan Gimba
In the past three years, at least eight African countries have witnessed military coup d’états. This is coming when it was thought that Africa’s democracy had come of age; when we were beginning to think that coups had gone for good, consigned to an era in the past when African governments were led by the military.
Coincidentally, all but one of the eight countries were colonised by France.
Some of the countries are Mali, Chad, Guinea, Burkina Faso, Niger and now Gabon.
The first coup in Mali was in August 2020, when President Ibrahim Boubacar Keita was overthrown by a gang of Malian colonels commanded by Assimi Goita. The coup came on the heels of anti-government demonstrations about worsening security, contentious elections for the legislature, and accusations of corruption.
After some pressure, resulting in fruitful negotiations, the junta agreed to hand over power to an interim administration run by civilians to oversee an 18-month transition to elections in February 2022.
However, a clash ensued between the coup leader and the interim president, retired Colonel Bah Ndaw, prompting the junta to stage a second coup in May 2021. Goita, who had been acting vice president, became president.
In Chad, the army seized control of the country in April 2021 when the country’s “soldier-king” president, Idriss Deby, was killed in combat while visiting forces engaged in fighting rebels in the north of the country.
However, instead of the speaker of the parliament taking over as stipulated by the country’s constitution, General Mahamat Idriss Deby, the president’s son, was named interim president. This sparked riots in N’Djamena, the country’s capital, but the military quelled it easily.
In 2020, President Alpha Conde changed Guinea’s constitution to run for a third term. This caused severe unrest that emboldened the country’s Special Forces led by Colonel Mamady Doumbouya to overthrow him in September 2021.
The failure to tame bandits and terrorists, especially Islamist militants, led Lieutenant Colonel Paul-Henri Damiba to oust President Roch Kabore in January 2022. But barely eight months later, Captain Ibrahima Traoré seized power from Damiba to become the country’s new leader on September 30, 2022.
On July 26, 2023, members of Niger’s presidential guard led by General Abdourahmane Tchiani, an officer once involved in peacekeeping efforts in war-ravaged countries, seized power from President Mohamed Bazoum to address the “deteriorating security situation and bad governance.”
Last week, on August 30, top military commanders in Gabon forcefully abridged President Ali Bongo’s third term and annulled the controversial results of the recent election he was declared the winner of.
When we look at these countries, what we see as a common thread is a long stay in office, fuelled by greed and self-centeredness. Because the sit-tight bug has bitten the leaders, they employ all means foul to remain in office, like constitution amendment, election rigging, imprisonment of opposition members, weakening of opposition parties and suppression of individual freedoms and the press.
They riddled their reign with government corruption, which they employed to weaken all democratic and state institutions and turn those with oversight functions, like the parliament, into rubber stamps.
It is unfortunate, but true, that many African leaders have a warped way of thinking. They assume that they were created to be served; that God created them specially and that without them, their country cannot get anywhere.
We can see such an inordinate desire to hang on to power in Cameroon, where Paul Biya has been at the helm since 6th November 1982. For 41 years, he has held his country by its jugular despite spending most of his time seeking medical care in Switzerland. Uganda is one other country where its leader, Yoweri Kaguta Museveni, has been in power since 26 January 1986.
Congo’s Denis Sassou Nguesso has been his country’s leader since February 8, 1979, and Equatorial Guinea’s Teodoro Obiang Nguema Mbasogo since August 3, 1979, while Eritrea’s leader, Isaias Afwerki has been on the saddle since May 24, 1993.
Perhaps this trend will continue as long as those whom God has elevated to such positions continue to see themselves as extraordinary mortals whose death would cause time to stop in its tracks. They must know that the world would not pause and look back when they drop dead.
Then, the judiciary. Yes, the judiciary could be the panacea. This arm of government is the bedrock of sanity in a nation. Once it is corrupt and, therefore, unreliable, making it no longer a last sanctuary of hope for the traduced, then a nation is doomed. If it was upright, then a nation would get it right because there would be justice for all, which would translate into safety and prosperity for everyone. “A kingdom (nation) can endure with unbelief, but it cannot endure with injustice”, said Sheikh Usman Dan Fodio in his book, Bayan wujub Al-Hijrah alal ibad.
In April last year, I wrote here: “Once a nation-state finds itself in such a situation, only a few options are left for it to continue. Sheikh Usman Dan Fodio’s ethos for a nation’s survival should become a national creed. Its leaders must urgently embrace justice and fairness and the laws of the land must equally apply to king and serf. Then the leaders must truly see leadership as service to the fatherland and not a means for them and their families to aim at owning the land. In his book, Bayan Wujub Al-Hijra, the revered scholar, revolutionary and founder of the Sokoto Caliphate, said: ‘A kingdom can endure with unbelief, but it cannot endure with injustice.”
It is also time that African leaders began to see their people as humans who deserve the best in life. All that the average African wants is to feel he counts and that his feelings are respected. He wants an organized society and so he wants his nation’s institutions to work. He is also law-abiding, and he understands and respects the law if it covers everyone – high and low.
A look at all the countries in Africa where coups have taken place of late will reveal that not only is the judiciary in bed with all the deposed leaders but also the followers do not seem to matter in the scheme of things.
Again, in April last year, I concluded a writeup with this: “The easiest way to serve the people is to empower them to easily access basic needs. The little money in their pockets should be valuable enough to guarantee that. Once the people can afford basic needs because of leaders’ efforts, the crime rate and discontent will take flight. What way is better to empower than to provide work for the majority?” majority?”
Hassan Gimba is the Publisher and Editor-in-Chief of Neptune Prime.