How MDAs Short-changed Nigeria by Remitting Dollar Revenue in Naira

The National Economic Council (NEC) was on Thursday told how some federal government agencies short-changed the country by remitting dollar revenue into the Federation Account in naira.

The Cross River State Governor Ben Ayade, who briefed State House correspondents alongside three of his colleagues – Olusegun Mimiko of Ondo, Aminu Tambuwal of Sokoto and Darius Ishaku of Taraba – said the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, gave the council a brief report on the agencies that were involved in the practice.

Ayade specifically mentioned the Nigerian National Petroleum Corporation (NNPC), Nigerian Maritime Administration and Safety Agency (NIMASA) and Nigerian Ports Authority (NPA) as some of the culprits. He however said that the scam was not limited to the agencies mentioned above.

Ayade said: “We received a brief report on the FGN agencies remitting dollar revenues in naira into the Federation Account, which was given by the CBN governor.

“He (Emefiele) said investigations were ongoing. Such agencies include but are not limited to NNPC, NIMASA and NPA.”

Also yesterday, state governors warned that in the face of continuing shortfalls in accruals to the federation, the bailout funds from the CBN was still not enough for the states to take care of the backlog of salary arrears owed workers in their states.

The states however assured the public that all funds received so far from the CBN for the purpose of offsetting the backlog of salaries would be used for that purpose only.

Concerns were raised that some states planned to divert the bailout funds amounting to N338 billion for 27 states to other projects.

But the governors maintained that they had no plan to divert the funds.
While answering questions after the briefing, Mimiko disclosed that the bailout funds would not be enough to take care of outstanding salaries, which includes pensions and gratuities, in the face of continuing revenue shortfalls accruing to the Federation Account.

He said: “The bailout is a short term measure to cater for the salary arrears. But the truth is that the accruals are low, so the final solution to the shortfall for the payment of salaries still has to be addressed.”

The states also said that the federal government had assured them that it would assist them in tackling the crisis created by floods in affected states.

On the status of the Excess Crude Account (ACA), Ayade said: “The permanent secretary (Ministry of Finance) briefed the council on the excess crude account which stands at $2.2 billion as at October 15th.

“Also on the provision of concessionary loans to states based on collaterisation of the excess crude account, the CBN governor briefed that 27 states had made a request for the N10 billion facility and that is currently being processed.

“He (Emefiele) has called on the affected states to complete all necessary documentation for the said loan to the 27 states.”

On the demand for a refund of funds spent by the state governments on federal government projects in their states, he said Vice-President Yemi Osinbajo also assured them that those who had followed the right procedure and due process in incurring the expenses, a review was being undertaken by the federal government to address the issue.

“Also there was an update on all states that are affected by flooding and the vice-president briefed us and confirmed that the federal government was processing all such affected states with a view to assisting states impacted by floods,” he said.

Fielding questions from the correspondents on why some states still owed their workers salaries despite the bailout funds disbursed by the CBN, Ayade and Mimiko said that their own states no longer owed salaries.

They also denounced allegations that the bailout funds were being diverted into other purposes.

According to them, there was a verification process carried out by the state governments, which was responsible for the delays in some states.

“Cross River is not owing and we are not diverting the funds. But also do not forget that when the money comes, there is a verification process to be done. The ICPC is sending a team to intervene and guidelines and modalities were prescribed in the way and manner this money will be disbursed.

“So some states are just beginning to receive the money and they need to get through this procedure before the CBN can release the funds. I want to assure you that for any state that has received the bailout, the money is specifically for salaries and it is not gong to be used to service any other business or for any infrastructure project.

“The money is specifically for the payment of salaries and all the states will comply as far as we receive it, because it is a computation of what has come up.
“When states were doing the compilation of their salary indebtedness, they included things like gratuities and all other things which were removed by CBN when they were paying.

“So all of that had to be streamlined at the state level before they could effect payments and that explains some of the delays. Definitely there will be no movement of the funds outside the mandate of payment of salaries,” Ayade explained.

Also, the governors spoke on the outbreak of floods, the funds set aside for such emergencies and measure being put in place to salvage flooded areas in the country.

On the measures being taken to mitigate the flooding is some states, Mimiko said: “The details were not discussed as per what individual states should be doing but there is no question about the fact that individual states are customising their responses depending on the level and impact of the flooding that has been experienced.

“What the council discussed was the mechanism whereby the federal government will come up with a holistic approach. We have not discussed the details, the details may be discussed at the next meeting but it does not mean that the states are not intervening to mitigate the disaster.”

In his briefing, Ishaku added: “Let me add that before the flooding took place, the federal government had issued warning alerts. So most of the people in the flood prone areas had been evacuated but you know that there are some communities that found it very difficult to relocate and now they are facing the realities on the ground.

“But a lot of effort has been made by most states and the VP has also asked that those states that have not briefed the federal government, should compile their reports. However, most states have done so.”

Source: Thisdaylive