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Nairaland Forum / Nairaland / General / Politics / Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala (3867 Views)
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Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by james669: 8:04am On Nov 28, 2014 |
.com.ng Nigeria's finance minister Ngozi Okonjo-Iweala revealed on Thursday that a significant portion of the billions of dollars drained from the oil savings account over the past two years was distributed to powerful governors instead of being saved for a rainy day. Nigeria, Africa's biggest oil producer, is grappling with financial difficulties owing to a 30 percent fall in the price of oil since June, which has added pressure on the government's already depleted fiscal buffers. The central bank devalued the naira by 8 percent on Tuesday because it was running out of forex reserves with which to defend the currency. The Excess Crude Account (ECA) had around $9 billion in December 2012, but it has since fallen to around $4 billion,Finance Minister Ngozi Okonjo-Iweala noted in a speech to capital market authorities. Most of the falls occurred during a period of record high oil prices, when oil savings are supposed to accrue. Okonjo-Iweala said some of the money had been needed to cover revenue lost due to outages caused by oil theft and pipeline vandalism, thought to drain hundreds of thousands of barrels a day. "Some of it (the ECA) was then legitimately used to offset revenue shortfalls arising from quantity shocks and to narrow the fiscal deficit," she said. "But against our advice, significant portions were also used to augment monthly allocations," to local and state authorities. "States argued that rainy days were already at hand and in fact (the rain) was already pouring, so the money needed to be used right away," Okonjo-Iweala said. Nigeria's oil revenues are the source of around 80 percent of government spending and are distributed each month to the three tiers of government: federal, state and local. Money from oil sold over and above the finance ministry's benchmark price is in theory deposited into the ECA, which can later be used to protect against oil price shocks or to plug the deficit. However, there are disputes about who should control this money, and state governors often argue the central government is hoarding the money and should distribute more to them. The president, being the country's most powerful person, can usually have the de facto last say on how ECA funds will be distributed. President Goodluck Jonathan, approved two dispersals of $1 billion last year to state governments. State governors are some of the country's most powerful people and their support is crucial for winning presidential elections -- President Goodluck Jonathan faces re-election in February 2015. State governors requested $2 billion from the ECA this month to complete projects and provide security ahead of the February elections. The request has not yet been approved. OPEC DECISION ADDS PRESSURE Demands from local governments for more funds are likely to intensify in the run-up to the election, but the falling oil price means government finances are likely to be squeezed further. The government has already revised down its assumed oil price for next year's budget to $73 a barrel, from $78 a barrel. But OPEC's decision on Thursday not to cut output has put further pressure on the oil price, potentially worsening Nigeria's problems. Okonjo-Iweala said on Thursday that government plans to review tax incentives and waivers and plug customs loopholes while also increasing surcharges on luxury goods, should raise 480 billion naira ($2.7 billion) over the next three years. She also said the government planned to save 160 billion naira by weeding out 60,000 "ghost workers" from the payroll, although she did not give a time frame. |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by donmalcolm21(m): 8:15am On Nov 28, 2014 |
I'm bracing myself for the rise in goods and services nxt year 1 Like |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by Nobody: 8:20am On Nov 28, 2014 |
Madam u guys are just talking bullsh.it. When we were shouting dat shale oil increase will soon affect ur crude oil price u guys wont listen becos u were busy stealing. Bullsh.it! Until u cut down d salary of dose bastard lawmakers and their foolish sitting allowance, scrap constituency projects, reduce stupid consumption in aso rock and all dat, den u guys are all fuccking sick, selfish bastards! Idiots! :@ 14 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by skyfall: 8:25am On Nov 28, 2014 |
Of course it's always the other person. At least we see what some of the governors did with the money in their states. What about the FG that spent trillions on defence yet Boko Haram keeps seizing Nigerian territory? Or your boss that keeps buying more jets like they're going out of fashion? Abeg make we hear word jare. 8 Likes 2 Shares |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by egift(m): 8:28am On Nov 28, 2014 |
Jonathan's administration blaming everyone else for their failures since 2010. Come what may, the Corrupt administration of Jonathan will be voted out. He has No new Ideas. 8 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by greatdeal1408: 8:28am On Nov 28, 2014 |
who doesn't know all these tale 1 Like |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by MudRaker: 8:29am On Nov 28, 2014 |
The state governors are by far the most greedy and most corrupt people on the planet. Hear Aregberascal below 40% reduction in Osun’s federal allocation unjustifiable – Aregbesola |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by MudRaker: 8:32am On Nov 28, 2014 |
obongproff: When will you get sense? This woman's statements and warnings have always played out with you fools waving it aside. 7 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by cocoduck: 8:44am On Nov 28, 2014 |
obongproff:you make sense small. but you should not abuse her, she is not your mate. 1 Like |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by RockMaxi: 8:58am On Nov 28, 2014 |
Madam NOI when you get time, you yourself should read this script over again. I know you won't believe how much sense you made. 1 Like |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by theM16: 9:02am On Nov 28, 2014 |
obongproff: Don't mind this woman. She is one of d biggest scams in jonathan's govt. Always quick to v opinions. criminals So as d finance minister what did she do when the governors were sharing d money. In situations like this do you have to blame anyone!!! Smh for these bunch of politicians who are never wrong. Always blaming. Next is for the govs to deny and blame other people too 2 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by jpphilips(m): 9:04am On Nov 28, 2014 |
Blame it on state Governors, quite convenient for you. The ECR account was only accessible to the Federal govt a breach of section 62 or so of the constitution, Iweala, you went to court and saw that it will be impossible to win and opted to settle out of court in an agreement to share it in accordance with the supreme court sharing formula. Madam Iweala, the FG cut in the sharing was the supposed sovereign wealth fund of $1b, immediately after elections, the SWF, ECR and foreign reserve were depleted, who did that? state Governors? Again, in January 2012, there was no money to pay subsidy reason it was removed in the first place, did you explain it to Nigerians that way? Did you tell them that ECR was used to pay subsidy in the OBJ administration which you served, other than sending Sanusi the Mickey mouse to be bamboozling Nigerians with how our population is so large that we can no longer enjoy our oil wealth? You said you are increasing the FIRS receipt by 50% in 2015 for luxury goods, did you release a communique as regards goods that fall into the luxury category? as usual, disgruntled Nigerians are jubiliating that there is no cause for alarm, little did they know that increased FIRS receipt means increased taxation, exactly how they didn't interpret subsidy removal with increase in pump price? When the state Govs were benefiting from the ECR, you were still the person approving foreign loans for them to squander, in other words, you pay federal allocation, pay their share of ECR and go ahead to guarantee foreign loans for them, who are you fooling? Iweala, you are just an over rated incompetent mofo doing a great dis service to this country. 17 Likes 1 Share |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by theM16: 9:15am On Nov 28, 2014 |
jpphilips: She is a blatant liar. I always knew that from when she started forming like she was doing us a big favor by being a minister cos she left world bank. Bullshit. How much she dey earn for world bank wey she no go allow us hear word. Opportunists everywhere 7 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by jpphilips(m): 11:45am On Nov 28, 2014 |
theM16: As usual Nigerians are already falling for her nonsense, during the NSE annual conference, she claimed that a recurrent expenditure of 77% accrued to govt spending is unsustainable, but when she wanted to proffer solution to budget deficit she said, she will increase taxation, now a cut in house of assembly and ministerial allowance will float the economy faster than increasing taxes especially at the sea ports, where importers will seek Cotonou as a more viable alternative. She claimed that the reason she is paying half subsidy in 2015 is because oil price has dropped as well as the landing cost, but it doesn't bother her that the pump price remains 97naira against all favorable odds? If the cost of purchase is low, logistics is low as such subsidy is low, why is the pump price still high, some say it is not deregulated, but our deregulated AGO speak otherwise of that position. Since Diesel is deregulated, I expected a sharp drop in price of diesel with fall in crude prices, but then when the Govt dont pay subsidy and probably tax the products at point of entry, the importer just sums it up at the pumps, the resultant effect to the end user is outrageous while the Govt pretends to be saving money. Nigerians need to know that Deregulation of the downstream sector as enshrined in the PIB makes money for the Govt through their pockets but the majority of m0r0ns running the streets of Nigeria think otherwise. When oil prices was high for over 4yrs, the Naira never appreciated, but each CBN governor was deluding himself that he is keeping the naira stable, if the ECR is shared and stolen, foreign reserve is stolen as well, Iweala's common sense should tell her to appreciate the naira that will leave less money in the hands of the thieves. why in less than a month of this oil crisis Nigeria is facing austerity measures if the reserves have not been stolen? Vote your choice of candidate but if you return this govt of poverty with your vote, God will return serious poverty in your families not even tithe will save you this time. what is so special about mediocrity and incompetence in governance? 22 Likes 2 Shares |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by oduastates: 12:01pm On Nov 28, 2014 |
Utter rubbish. Obj left 22 billion dollars in the ECA FG takes 52% of everything, Where is the 11 billion dollars share of THE FG If powerful governors........... 2 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by akoaki(m): 12:39pm On Nov 28, 2014 |
All this rhetorics sound like 'medicine after death' . Sometimes its better for public officials to admit their failure rather than try defend it. The signs of a failing economy have always been there but consistently ignored by nigeria policy makers for selfish reasons. 1 Like |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by slimfit1(m): 1:27pm On Nov 28, 2014 |
obongproff: Let it out babe. 1 Like |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by ichidodo: 2:11pm On Nov 28, 2014 |
For the first time here on NL,we would have to disagree with Noi.. 2 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by since1914(m): 2:57pm On Nov 28, 2014 |
jpphilips: That is not even the problem, because, most Nigerians have no problem with paying more taxes. The only problem they have is when the taxes paid are mismanaged. In fact I have always said that if we paid more taxes in Nigeria, people will be less tolerant of corrupt public officials. Just imagine paying 40,000 Naira out of your 100,000 Naira monthly salary, as taxes. You won't go home quietly if any part of that sum is embezzled by any man, we would visit him at home and lynch him publicly. If government increases taxes and we no longer need to buy fuel for our generators because of constant electricity, or if it leads to good and affordable healthcare, then that is progress. Unfortunately, there is no sign that, that will be the case if we agree to pay more taxes. Before we even talk of increasing taxes we need to take a holistic look at the current tax system and administration in the country. Casual observation shows that we still haven't even exhausted all the avenues of taxation in this country, because there are so many people that are yet to be brought under the tax net. Secondly there is also a lot of leakages in the tax system. The level of corruption at the FIRS is staggering. Most tax officials are living far above their means, this by the way is not a speculation-am speaking from first-hand experience. Tax officials are conniving with tax payers and multinational companies to defraud the government, they are renegotiating tax rates and outrightly granting waivers upon receipt of kickbacks. The Finance Minister needs to rise up to the ocassion rather than dish out blames, we have long gone past that stage. Now is the time to regain the trust of Nigerians. For a start, now is a golden opportunity for the government to convince the masses about total subsidy removal. Now that the international oil prices have dropped significantly, government should either reduce the pump price of fuel or admit publicly that she is spending a lot less on subsidy now. Which means that we should still have unspent leftover subsidy money in this year's budget. 4 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by jpphilips(m): 3:17pm On Nov 28, 2014 |
since1914: I don't know about you but saying Nigerians don't pay reasonable tax, is either you have a low paying job or you don't do business in Nigeria. Ask the guys who import cars from the US how much they clear a car bought barely $3,000 from the US, what do you think duty is? I agree with you that people will be less tolerant when they pay higher taxes, but the biggest weapon of corruption "HUNGER" has been flogging Nigerians since 1960, what have they done? A job that hunger could not do, how do you think increased taxation will fare? bros, they will go home in penury give the change to their pastors and sleep, Nigerians are less humans. 4 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by phantom(m): 4:11pm On Nov 28, 2014 |
jpphilips: bullseye!!! 2 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by Nobody: 4:16pm On Nov 28, 2014 |
Is this woman insinuating that the state government is now more powerful than the federal government? It is really appalling that out of gross incompetence, blatant carelessness and lack of foresight, she couldn't envisage the impeding crisis as a result we are now suffering, even with the plethora of tell signs that should have made us better prepared for this crisis. she totally failed in her capacity as the finance minister and is now shamelessly trying to transfer the blame to the state gorvernors, instead of charting out a course through which we can mitigate the effects of the plummeting oil price and work in synergy with the governors to raise IGR and by effect lessen the burden on the ECA. This woman has been a flop and a massive fiasco in this her second term under GEJ. I am totally bewildered that even with her pedigree she has successfully manage to fail so massively. |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by pazienza(m): 4:32pm On Nov 28, 2014 |
Choi! See as them carry brain wey them suppose share give ten brilliant persons,come give only one person,come name am, Jpphilips. But ehn., if Buhari,Atiku and Tambuwal are the only alternative to GEJ come 2015,then i am afraid that i would vote for GEJ again, walahi! 2 Likes |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by omenka(m): 4:33pm On Nov 28, 2014 |
Yeah!!! And the blame shifting plot begins to take shape!! Madam, you should be ashamed of yourself. Under Jonathan, and under your supervision, we recorded some of the most catastrophic fiscal imprudence. How many jets were added to the presidential fleet under your watch?? Were they necessary?? Under your watch, billions were spent on feeding pets in Aso Rock and maintaining the lawn. Under your watch, cutlery were budgeted for every year when we know even in your own house, they can be used and reused for up to 5years!! Under your watch billions was allocated for the feeding of the president and vice. Under your watch billions was budgeted for building a nonsensical first Lady's Mission House. There are way too many scandalously stupid expenditures you endorsed even at the presidential level, and here you are covertly trying to absolve yourself and your employee of the mess we now find ourselves in. If you had given good counsel as was expected of you perhaps the effect of the oil price crash wouldn't have been so obvious. When you and your surrogates sit atop your lofty table in your penthouse office accommodation, you could blame all you want over your failure, but the down trodden and average Nigerian has no one to blame but to look to God for salvation. They bear the brunt of your incompetence and that of your paymaster. Shame on you all. 1 Like |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by oduastates: 4:37pm On Nov 28, 2014 |
Slonge2: What pedigree? She was busy squandering money and granting waivers to their corrupt minions,removing import duty on crap and simply gallivanting around the place. This woman almost destroyed the vegetable oil industry. She never ran anything remotely close to a kiosk before being forced on Nigeria to do a sabotage job. Watch this naomi klein documentary.you will understand this woman and her likes better. https://www.youtube.com/watch?v=SrpA46YS7P0 Now watch the crap coming out of this woman's mouth https://www.youtube.com/watch?v=ji2i_5Gu9nk Using China and India as examples on poverty. Rubbish. China and India are lifting tens of million out of poverty while dumbo and Iweala are sending millions into poverty. The theft/removal of Subsidy ( which never existed)and subsequent increase in fuel prices automatically sent millions into poverty overnight. 3 Likes 2 Shares |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by vedaxcool(m): 4:48pm On Nov 28, 2014 |
Is this woman well at all? Why is Nigeria most useless administration always blaming others for their lack of coherence and creativity? |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by simpleseyi: 4:51pm On Nov 28, 2014 |
And what did the world bank fraudster do while this was happening? 1 Like |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by 7lives: 5:36pm On Nov 28, 2014 |
They will soon blame current economic crises on Tambuwal, CNN and Late Nelson Mandela. Nigerian Government is like '' papa bornthroway '' the most irresponsible government ever. |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by DonaldGenes(m): 5:40pm On Nov 28, 2014 |
Most especially my Gov and that of Rivers State were most profound in the clamour to share the oil money and the finance Minister naively oblige the Governors |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by Metrofox(m): 5:48pm On Nov 28, 2014 |
[quote author=since1914 post=28419424 Now that the international oil prices have dropped significantly, government should either reduce the pump price of fuel or admit publicly that she is spending a lot less on subsidy now. Which means that we should still have unspent leftover subsidy money in this year's budget. [/quote] Smart thinking, one Orijin for you jor 1 Like |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by Nobody: 5:55pm On Nov 28, 2014 |
Does she mean like Ameachi's $45 million dollar Bombardier Global 5000? Or the Presidents Numerous Jets? Yet these politicians would be complaining of lack of funds to complete projects, but they live as though their country is built with streets of gold and we use diamonds to illuminate the dark instead of street lights. They sip their champagne in the air... while the gullible supporters fight on the ground. |
Re: Powerful State Governors Drained Nigeria's Boom Time Oil Savings - Okonjo-iweala by patwilly(m): 6:35pm On Nov 28, 2014 |
The same Governors her principal was granting state pardon left right center! mtcheww.. |
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