" Federal Govt Seeks More Fund As States Face Cash Crunch And Salaries Swallow Revenues - Flavourway

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Friday, April 16, 2021

Federal Govt Seeks More Fund As States Face Cash Crunch And Salaries Swallow Revenues

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Two top officials of the Muhammadu Buhari regime on Wednesday indicated that the country urgently needed more funds to run government and provide basic amenities for Nigerians.
Although the Minister of Finance, Budget and National Planning, Zainab Ahmed, in an interview with the State House correspondents faulted a claim by the Edo State Governor, Godwin Obaseki, that the Federal Government printed between N50bn and N60bn in March, she said there was a need to improve revenue to run government. On his part, the Accountant-General of the Federation, Ahmed Idris, at the 2021 retreat for members of the technical sub-committee on cash management, stated that there was increasing pressure on government funds.

The minister and the accountant-general of the federation said these as investigations by The PUNCH revealed that most state governments were fast turning into salary-paying centres as a larger percentage of their revenues was spent on personnel costs compared to capital projects.
For example, while the Ekiti State Government said it spent 93.6 per cent of its federal allocation on personnel costs, its Ondo counterpart admitted that it was challenging paying high personnel costs.
Recall that two state governors a few days ago painted gloomy pictures of finances of state and federal governments.

On Monday, Governor El-Rufai of Kaduna State, via his Special Adviser on Media and Communication, Mr Muyiwa Adekeye, at the same time as justifying the selection of the state authorities to put off employees said, “In the last six months, employees charges have accounted for between 84.Ninety seven in line with cent and 96.Sixty three consistent with cent of FAAC ( Federation Account Allocations Committee) transfers acquired with the aid of the Kaduna State Government. In March 2021, Kaduna State had simplest N321m left after settling personnel expenses.”

On Thursday last week, Obaseki became quoted as raising the alarm over Nigeria’s economic position which he said made the Central Bank of Nigeria to print about N60bn to reinforce allocation shared with the aid of states in March.
He stated, “When we got FAAC for March, the Federal Government printed additional N50-N60bn to top-up for us to percentage. This April, we will go to Abuja and percentage. By the quit of this year, our overall borrowings are going to be inside N15-N16tn.”
The finance minister inside the interview with State House correspondents on Wednesday stated there was no reality inside the claim made by means of Obaseki.

She, but, stated there has been an urgent need for the u . S . A . To enhance its sales to provider debts and ensure day-day running of government.
Shedding greater mild on the usa’s price range, the finance minister said, “Nigeria’s debt remains inside sustainable restrict. What we want to do as I have said numerous times is to enhance our revenue to beautify our ability to service, now not most effective our debt, however to service the wishes of running government on a everyday basis.”
Describing the governor’s claim as very unhappy, the minister explained that the money shared monthly at FAAC become sales generated.

Ahmed, who stated Obaseki’s declare became not real, defined sales distribution as public facts that became available to all.
The minister also faulted the governor on the alarm raised on the united states of america’s borrowings. She insisted that the state’s debt profile become still within sustainable restriction.

Ahmed stated, “The difficulty that turned into raised through the Edo State Governor, for me, is very unhappy because it isn't a reality. What we distribute at FAAC is a sales this is generated and in reality, distribution revenue is public statistics.
“We submit revenue generated by using the FIRS (Federal Inland Revenue Service), the Customs and the NNPC (Nigerian National Petroleum Corporation) and we distribute at FAAC. So, it is not authentic to mention we revealed money to distribute at FAAC. It isn't always true.”
Efforts to reach the governor on Wednesday proved abortive as none of his former aides picked their calls, whilst one, who promised to call back, did no longer achieve this as of the time of sending of this file.
A go to by way of The PUNCH to the government residence on Wednesday night additionally did no longer yield a end result as the governor changed into stated to be out of the office after attending to the day’s task, reputedly to attend the last ceremony of the National Sports Festival, which led to Benin on Wednesday.

There is growing pressure on executive price range – AGF

Also on Wednesday, the Accountant-General of the Federation, Idris, advocated efficient management of government finances.
He said that at present, there has been increasing strain on authorities price range, a state of affairs that had made it vital for managers of government finances to evolve techniques that could assure efficient cash control.
Idris disclosed this on the 2021 retreat for members of the technical sub-committee on cash management. The technical sub-committee on coins control, inaugurated in April 2016, is the professional arm of the Federal Cash Management Committee.

According to a statement issued in Abuja by way of the Director, Information, Press and Public Relations, Office of the Accountant-General of the Federation, Henshaw Ogubike, Idris said, “Managing budget ought to not just be approximately expending the to be had budget. We have to constantly keep ourselves abreast with strategies for understanding how to make sure inflows, whilst to burn up and whilst not to.
“We should be capable of forecast into the unforeseeable destiny, the coins desires of the government and viable challenges.”


Ekiti spends ninety three.6% of federation allocation on personnel, gets N3.1bn on the average – Commissioner


In Ekiti State, the Information Commissioner, Akin Omole, said the kingdom spent over ninety three.6 per cent of the monthly allocation from the federation account on employees.

Omole, in an interview with one in all our correspondents, stated, “The country has cut non-center expenditure, minimised the appointment of political appointees and delivered strict procurement standards to make sure value for cash on all fees.
“Ekiti spends ninety three.6 per cent of its average FAAC receipts on personnel. Ekiti State has obtained N18.5bn, an average of N3.1bn over the last six months”.

On whether the state changed into considering sacking workers, he said, “No, we aren't exploring this feature. Ekiti State will retain to prioritise the welfare of its employees, but the kingdom will even rely on its personnel to increase productivity, and force internally generated revenue increase to make sure the nation can better face up to any shocks from the federally distributed sales.”
He stated that the Dr Kayode Fayemi management had, due to the fact that assumption of office, grown the IGR “via fifty five according to cent from N450m to N700m according to month”.
On the salary invoice, he said, “Political appointees account for nine per cent of monthly payroll expenses (N158m) at the same time as civil servants account for ninety one in keeping with cent (N1.54bn), using March 2021 payroll.

“Since we assumed office, political appointees have no longer accounted for more than 9 in keeping with cent of the payroll and this discern even dropped for the duration of the peak of the COVID-19 pandemic whilst political appointees forfeited half of in their salary as a sacrifice to the state during a very hard duration.
“We get the cooperation of international bodies and donor companies that exist for development. That is glaringly the distinction among a central authority that is aware of its onions and others.”

“We are not genuinely inside the fine of instances financially, but we're a central authority and no longer an business enterprise or corporate body that exists for simply financial reasons. We are mindful of the socio monetary lives of our humans and as such our decisions and actions have to reflect this. We shall together climate the typhoon and pop out better.”


Personnel fee is a assignment – Ondo


On its component, the Ondo State Government stated the personnel price within the recurrent expenditure of the finances changed into a challenge to any authorities.
A sum of N42.228bn, which is fifty three.Four according to cent of total recurrent expenditure of N79.084bn became earmarked for personnel value for the 2021 budget.

The state Commissioner for Information and Orientation, Mr Donald Ojogo, however stated notwithstanding the venture, the authorities become nevertheless coping.
He said, “The governor, Arakunrin Oluwarotimi Akeredolu, SAN, has said it again and again that the bane of accurate governance is the unreal percentage spent on recurrent prices. Every governor’s desire, mainly for ours in the nation is to have more than 50 in step with cent voted for capital expenditure. But the consequences are such that you need to wane down personnel to attain such, and that is not possible because which means throwing more humans into the labour market this is already overwhelmingly bloated.
“It is a massive challenge for all governments, it is not is unusual to Ondo State, neither is any tier of presidency insulated.”

We are going through paucity of price range – Osun

The Osun State Commissioner for Political Affairs and Intergovernmental Relations, Taiwo Akeju, whilst contacted, admitted that the state became struggling with paucity of finances.
Akeju, however, said Governor Adegboyega Oyetola, have been handling the to be had assets to satisfy all obligations.
Asked how plenty the states was spending on personnel cost month-to-month, Akeju said the determine turned into no longer available to him, however explained that in spite of paucity of price range, the kingdom had not borrowed from banks.

“We have a seasoned administrator in Governor Oyetola. He is handling the nation with the to be had resources. Till now, we have no longer borrowed from any financial institution. There is paucity of fund, however the little we've the governor is handling it nicely,” Akeju concluded.
In the state 2021 budget, recurrent expenditure underneath which personnel cost turned into captured was N50,620,238, even as capital expenditure was N59,234,768,500,00.
We can’t keep to spend 90% of our sales on civil servants, pensioners who're 1.7% of our population – Gombe

In Gombe State, the Commissioner for Finance, Muhammad Magaji, stated the country spent among 80 consistent with cent and ninety consistent with cent of its IGR and federal allocation at the charge of salaries and pensions.
Magaji, who disclosed this on Wednesday, whilst briefing newsmen after council assembly presided by using Governor Muhammadu Yahaya, stated the country added the Integrated Payroll Payment Gateway and Human Resource Management Information System to lessen leakages.
He stated at the same time as between 80 consistent with cent and ninety in step with cent of the country’s sales become spent on civil servants and pensioners, they constituted handiest 1.7 consistent with cent of the country’s populace.
The commissioner said, “We spent about eighty-ninety in step with cent of our income from the internally generated sales and allocation on the charge of salaries and pensions.

“If we retain to pay that, it approach handiest 10 to fifteen in line with cent can be used to offer services for other humans in Gombe State while the civil carrier and the pensioners are just about 1.7 in step with cent of the whole population of human beings in Gombe State and others want services to be provided for them.”
Magaji stated the Integrated Payroll Payment Gateway and Human Resource Information Management System could assist us reduce payroll fraud and boom transparency inside the price of salaries and pension to deserving pensioners.
A take a look at famous that the Sokoto State personnel cost is N36,199,656,390.09 as against overhead cost of N30,032,230,567.20, out of the kingdom finances of N176,685,535,663.47.

Part of the country authorities saving measure, changed into civil servants screening, where over N1.647,657,430.86 became saved due to its fishing out of more than one ghost people and baby employees.
It turned into undertaken via the nation authorities underneath the auspices of the country Ministry of Finance.

The Bauchi State Government on its component earmarked N31,763,906,163 of its N213,914,559,427.00 price range for 2021 for personnel prices, in line with a copy of the price range obtained by way of The PUNCH .
In Benue State, a check within the 2021 finances suggests that the kingdom expects a complete sales of N58,758,672,152 from the federal allocation and the Value Added Tax.
While Independent sales stands at N19,761,611,452, mortgage which is part of receipt for 2021, stands at N30,261,757,702.
The employees cost for the year stands at N49,338,215,266 and overhead cost N41,472,736,484 as against capital expenditure of N41,781,089,561.

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