Oil Slump: Allocation To States, LGs To Drop By N32bn



The decline in the price of crude oil in the international market may have led to a reduction in the 2015 allocation to states and local governments from N3.969tn in the 2014 budget to N3.937tn in 2015.

The proposal, which is contained in the revised 2015-2017 Medium Term Expenditure Framework sent by President Goodluck Jonathan to the National Assembly, is N31.91bn lower than the amount approved in the 2014 fiscal period.

The sources of allocation, according to the document, are from the federation account, Value Added Tax and stabilisation fund (Excess Crude Account).

Jonathan had last Wednesday submitted the revised MTEF to the National Assembly, in response to the declining oil price at the international market.

He had said the recent development in the international oil market necessitated that the MTEF be revised to allow for adjustment in some of its key parameters.

In the MTEF, a copy of which was obtained by our correspondent on Sunday, the document stated that while the sum of N2.24tn should be allocated to states, the 774 local governments should share the sum of N1.697trn.

The 2015 figure of N2.24trn for the 36 states is N17bn lower than N2.257tn shared in 2014.
Similarly that of local governments is also expected to decline by about N15bn from N1.711tn to N1.697tn.

Giving a breakdown of the 2015 allocation to the 36 states, the document put their share of federation account, VAT pool and stabilisation fund at N1.728tn, N420.44bn and N91.55bn, respectively.

This is against the N1.665tn, N405.82bn, and N185.94bn allocated under the same sub-heads in the current fiscal period.

For the 2015 allocation to local governments, the MTEF put their share of the federation account, VAT pool and stabilisation fund at N1.332tn, N294.31bn and N70.58bn, respectively.

The amount approved for the 774 local governments in 2014 under these fiscal items were N1.284tn, N284.07bn and N143.35bn.

The Chairman, FAAC Commissioners Forum, Mr. Timothy Odaah, had during an interview in Abuja called for more allocation to the states and local governments to enable them to complete ongoing projects.

He said since elections were coming and coupled with the fact that provisions for security and other elections logistics were expensive, it would be difficult for the states to carry on with developmental projects owing to paucity of funds.

Odaah said, "FAAC commissioners forum has asked for $2bn to be accessed specially from the foreign excess crude account because the states and local governments are really suffering."

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Falling Oil Prices: Jonathan Calls For Collaboration Between Oil Producing Countries

 



President Goodluck Jonathan has implored oil producing countries to cooperate more and work together to surmount the present challenge of falling crude oil prices.

The President made the comments while meeting with Angola’s new Ambassador to Nigeria, Eustaquio Janeiero Quibato.

He stated that African oil producing countries particularly needed to come together and decide on the best ways of protecting their domestic economies from the vagaries of fluctuating oil prices.

President Jonathan told the new Ambassador, “We are blessed with oil and we must continue to do all that we possibly can to maximize its benefits for our countries and the African continent.”

He called for the expansion of trade, economic, cultural and political cooperation between Nigeria and Angola, while also noting that both countries have always had cordial bilateral relations.

“For years, we have had a solid relationship. Historically, we have been together. So Nigeria and Angola should also work with greater synergy at continental and global fora,” President Jonathan said.

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Shell To Spend N2bn On Centenary Projects In Nigeria

 



Shell has announced plans to carry out three developmental projects in Nigeria, worth about N2 billion, to mark Nigeria’s 100 years of nation hood.

The projects, according to a statement by the company, are a 200-seater library in Port Harcourt, Rivers State, a health project at Oloibiri, Bayelsa State and upgrade of athletics infrastructure in five secondary schools in Delta State.

Mr. Mutiu Sunmonu, Managing Director, Shell Petroleum Development Company, SPDC, and Country Chair, Shell Companies in Nigeria, said Shell is implementing the library and health projects exclusively, and funding 30 percent of the cost of the athletics infrastructure upgrade through its share in the SPDC Joint Venture, with the other partners, NNPC, Total and ENI providing the rest of the funding for this project.

He said, ”The projects show our commitment to a long-term future for Nigeria. We are pleased that the projects will deliver significant benefits to the people, and help boost literacy, healthcare and youth empowerment, in line with our robust programme of social investments in Nigeria.”

Sunmonu formally unveiled the three centenary projects at a road show on sustainable development organised in Abuja by SPDC, saying that the projects are being overseen by implementing partners, the Port Harcourt Literary Society, Federal University, Utuoke and Africare, Nigeria.

Speaking on the development, Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Joseph Dawha, represented by the Group Executive Director, Gas & Power, Dr. David Ige, commended the implementation of the centenary projects and the social investment interventions of Shell and the NNPC/SPDC Joint Venture.

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