Subsidy Claims Drop From N2.2trn to N917bn —Okonjo-Iweala

The Federal Government reduced public spending on oil subsidy payments from N2.2 trillion in 2011 to N971 billion in 2012, a statement from the Federal of Finance has indicated. This represents a reduction of over N1.2 trillion or 56%, according to the release from the ministry.

Speaking on the issue, the Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala recalled the background to the high profile issue which generated immense public concern.

“In 2011, there was a huge public outcry. As a result, this administration has worked hard to clean up the process of subsidy payments. In response the ministry set up the Aig-Imoukhuede committee which investigated the subsidy payments. The committee was later elevated to a Presidential Committee by Mr President,” Dr Iweala explained.

She explained that the ministry hired new auditors and put in place different checks and balances, adding that “ last year, we brought subsidy payment down to about N950 billion, and we expect that this year, we will pay about N971 billion.

“I believe this is a huge achievement for which the Jonathan administration deserves some credit, something that should make Nigerians proud of their government,” the coordinating minister noted.

The statement from the ministry stated further that “in furtherance of the Jonathan administration’s commitment to transparency and accountability in the management of fuel subsidy payments, the Federal Ministry of Finance has released the sum of N46,764,191,448.16 as latest payment to oil marketers whose claims have successfully gone through the verification process.

“This means that, so far in 2013, a total of N287,351,770,696.16 has been paid in verified claims to verified marketers,” the statement signed  by Paul C Nwabuikwu, Special Adviser to the Coordinating Minister noted.

I am Not Ready To Resign, Okonjo Iweala Replies Governor's Forum

Mrs Okonjo Iweala

Minister of Finance and Coordinating Minister for the Economy, Ngozi Okonjo-Iweala, on Wednesday dismissed calls for her immediate resignation from office over her alleged refusal to comply strictly with Federal Government revenue projections in violation of the 2013 Appropriation Act.

Chairman of Nigeria Governors’ Forum (NGF) and Rivers State Governor, Rotimi Amaechi, had said at the end of of the Forum’s meeting on Tuesday that the decision by the minister to entrust the constitutional responsibility of managing the country’s economy on the Economic Management Team constituted by the Presidency, rather than the National Economic Council, was a violation of the provisions of the Act.

But, responding to our enquiry on whether she was considering complying with the demands by the governors, Mrs. Okonjo-Iweala said that was not part of her immediate plans, as she was too busy working to ensure the economy served Nigerians better.

“That (resignation) doesn’t arise at all,” the Minister said. “You know I’m not here to address those kinds of issues. I’m Minister of Finance for the country. I’m working with President Goodluck Ebele Jonathan, and I just do my job. I’m not here to address such issues. From time to time, I call you (reporters) to share with you what is happening in the economy. That’s what I am doing. So, I’m not answering to that. And as you see me here, do I look any close to resignation? I de Kampe!

“Don’t worry about that. You know we shouldn’t talk about political issues here.What I want to tell you is that the economy must be managed to the good of Nigerians. We are not going to be involved in any political thing. Let’s face facts of the economy – about roads built; agricultural jobs created; increase in production and things we are doing that you can go and check for yourself,” she said.

While reviewing the performance of the economy, Mrs. Okonjo-Iweala said the economy was doing reasonably well, though not perfect yet, adding that the realities on the ground attest to that, with 2.5 million seasonal and full-time jobs created in the agricultural sector alone, involving nine commodity chains, including cassava, sorghum, oil palm, cotton, cocoa, dry and rainy season rice.

The minister said that some of the commodity production have helped in moderating prices of food items in the market, such as beans and yam, adding that government aims to create more jobs in that sector and others in the economy.

She said government was also doing well in the area of manufacturing, with ongoing specific investments in petrochemicals and fertilizer, to help create jobs, while the community services scheme for the unskilled being run on the Subsidy Re-investment and Empowerment Programme (SURE-P) has created 178,000 jobs, in addition to over 2,000 beneficiaries under the Graduate Internship Scheme (GIS) for graduates and 19,000 jobs from the YOU-WIN programme.

On the fuel subsidy payment regime, she said the system had been audited and cleaned up, resulting in significant reduction in the amount being paid out to marketers from N2.3 trillion to about N950 billion, with the expectation that government would pay about N971 billion this year. Another tranche of the payment to petroleum marketers, she said, would be disbursed on Thursday.

In addition to these achievements, the minister said the fundamentals of the economy remained strong, with the country’s foreign reserves currently standing at about $46 billion, consisting of an Excess Crude Account (ECA) balance of over $5 billion, while inflation rate had remained at single digits at about 8.7 per cent and exchange rate relatively stable within a band of N155 and N160 to the dollar.

Gross Domestic Product (GDP) growth rate, she said, was still at about 6.5 per cent in the first quarter, and 6.18 per cent in the second quarter, while fiscal deficit is about 1.85 per cent of GDP, indicating that government was maintaining prudent management of the economy.

The minister said the prudent management of the economy had generated sufficient confidence for investors, particularly among the governors, most of whom, she said, believed so much in the performance of the economy that they were floating bonds to help fund various development programmes in their domains.

“If one does not have confidence in the management of the economy, one would not float bonds. One can only float bonds in an economy that works. We have a list of nine states that have recently floated bonds in the Nigerian Stock market. We have more applications from other state governments pending. This is a total mark of confidence in the economy and its management. I am glad to say that we have a good relationship with the governors, and will continue to work with them,” the minister said.

-Premium Times

Nigeria Governor's Forum wants Okonjo Iweala resigned

Minister Of Finance, Okonjo Iweala

The Nigeria Governors’ Forum, NGF, led by the Rivers State Governor, Rotimi Amaechi, rose from its meeting on Tuesday night and demanded the resignation of the Minister of Finance and Coordinating Minister of the Economy, Ngozi Okonjo-Iweala, if she could not comply strictly with the 2013 Appropriation Act.

The Forum also canvassed the immediate disbanding of the Economic Management Team.

The meeting, which held at the Rivers State Governor’s Lodge, was attended by Babangida Aliyu (Niger), Abdulfatah Ahmed (Kwara), Rauf Aregbesola (Osun), Kayode Fayemi (Ekiti), Ibikunle Amosun (Ogun), Murtala Nyako (Adamawa), Abiola Ajimobi (Oyo), Babatunde Fashola (Lagos), Aliyu Wamakko (Sokoto), Sule Lamido (Jigawa), Musa Kwankwaso (Kano), Abdulaziz Yari (Zamfara) and Mr Amaechi (Rivers).

Deputy governors of Borno, Edo and Nasarawa States represented their bosses.

No member of the faction headed by the Plateau State Governor, Jonah Jang attended the meeting, despite their invitation.

The Forum contended that the refusal to comply with the revenue projections of the Federal Government was a breach of the Appropriation Act.

“Members expressed concern in the management of the economy by the Minister of Finance and Co-ordinating Minister of the Economy and called for a strict adherence to the Appropriation Act, 2013, failing which she should resign,” Mr Amaechi, who read the communiqué after the meeting, said.

“Forum observed that the National Economic Council is constitutionally responsible for the management of the economy and should be used for that purpose as opposed to the Economic Management Team constituted by the Presidency.”

The Forum requested the National Assembly to separate the office of the Accountant General of the Federation from that of the Accountant-General of the Federal Government in order to ensure accountability and efficient management of the economy.

It also expressed satisfaction with the progress made in the war against polio in the last one year. However, it urged state governors in the country to continue with the war in order to eradicate the disease completely.

The Forum also condoled with one of its members, Mr. Fashola over the loss of his father just as it expressed condolence to the family of Olusegun Agagu, former Governor of Ondo State, who died last Friday in Lagos.

It also condoled with the First Lady, Patience Jonathan, who lost her mother in a motor accident in Bayelsa State recently.

The Forum also disclosed that it would hold a retreat for its members in November, although the venue of the event was not disclosed.

The notice of meeting sent to the governors for the meeting showed that money by the Federation Account Allocation Committee topped the agenda at the meeting.

Also on the agenda was the Excess Crude Account, which had been a major disagreement between the governors and the Federal Government.

-Premium Times