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| Last Updated: Jan 19th, 2012 - 11:25:19 |
National Economic Council
NEC approves $1.5b for sharing among three tiers of govt
Mar 11, 2009, 19:33
| | The National Economic Council (NEC) met on Tuesday, March 10 and approved the sum of $1.5 billion to be released for sharing among the three tiers of government from the Excess Crude Account.
Briefing the media after the Council’s meeting chaired by Vice President Goodluck Jonathan, on Tuesday March 10, at the State House Abuja, Minister of Finance, Dr. Mansur Muktar, in company of the Governor of Ebonyi State, Chief Martins Elechi; Minister of Agriculture and Water Resources, Dr. Abba Ruma and Minister of National Planning, Dr. Shamsudeen Usman disclosed that approved fund which is to be disbursed in naira, is to augment for the shortfall in the revenue accruing to the states as a result of the global economic crisis and the militancy in the Niger Delta.
He stated that Council conceded that short-term support is needed based on which a decision was taken to release with immediate effect, an amount of $1.5 billion that would be shared amongst the tiers of government.
Council also approved $45 as benchmark for the sharing of additional money from the January and February allocation to bridge the financial shortfalls to the three tiers of governments.
"Many states have been experiencing difficulties. And last month, what the states received has fallen drastically. And there are continued challenges as oil price decline and we have production shortfall. Some states and local governments have been unable to pay salaries as a result of this shortfall and some teachers have been on strike. And because of the threat to security, there were considerations given to utilise part of the excess crude money to provide bridge financing." He said.
The Finance Minister presented the sharing formula agreed upon by the NEC as Federal Government; 52.68%, states; 26.72%, local governments; 20.6% and oil producing areas; 13%. He noted that the states are making various efforts to increase internally generating revenue which include borrowing from capital markets as well as to look at medium and long-term plans for adjusting their spending to basically respond to dwindling revenues.
Speaking on the serious challenges in the ports, he said Council requested for more concerted efforts to address the situation because of it’s adverse impact on the economy. He disclosed that some suggestions preferred include ports authority and Nigerian Customs Service should be held to stick to the 48-hour clearance and a report submitted next meeting.
Agriculture Minister Dr. Ruma disclosed that Council approved the proposed N200 billion-bond commercial agricultural development programme designed by the Federal Government aimed at guaranteeing food security in the country and provide about three million jobs in the next three years. He said that the Ministry and a group from Thailand would sign a MoU for a one million hectare rice development programme on Wednesday, March 11.
In his presentation, Elechi stated that the Council has set up a special committee to brief it monthly on the global economic recession. The committee to be chaired by the Governor of Kwara State, Dr. Bukola Saraki, has the Governors of Benue, Bauchi, Imo, Delta, Kaduna and Minister of National Planning, CBN Governor and the office of President as members.
Dr. Usman who stated that the Council was briefed on the activities of the National Integrated Power Projects (NIPP), disclosed that the target of 6,000mw will be met in December 2009 or slightly surpassed and that of 10,000mw by December 2010 will also likely be met.
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