mikeansy:

Beaf

Please what section of the Nigerian constitution says the money in the excess crude account or any money whatsoever in the Federation account belongs to the State Governors and must be spent at the demand of the Governors.

Please once again let us keep it clean and respectful. I just wanna learn something new.

mikeansy:

Beaf

Please what section of the Nigerian constitution says the money in the excess crude account or any money whatsoever in the Federation account belongs to the State Governors and must be spent at the demand of the Governors.

Please once again let us keep it clean and respectful. I just wanna learn something new.

Gbawe:

Indeed . Mikeansy has done a good job showing that Jonathan will always play politics rather than do what is best for Nigeria. His capitulation to the Governors , when he knows they are blatantly looking for retirement funds (outgoing Governors) and campaign funds (Governors seeking re-election) , is an example of a leader , as you surmised , who will always be easily blackmailed to act against the best interest of Nigeria because most Politician have identified his desperate need to buy support and "endorsement" . Now that the Governors are showing "chop your dollar " deviousness (i.e collecting bribe and yet failing to support Jonathan) , as I predicted many Politicians would be doing , Mr.President want's to hound them with the EFCC !!!

egift:

@ Beaf
Its unfortunate that you do not see anything wrong in GEJ sharing N4,050,000,000,000 (N4.05 Trillion) to Governor in 8 months. Imagine what will happen in 4 years.

Now that President Jonathan has decimated the Excess Crude Account

- http://www.elombah.com/news/node/4211
• Jonathans' Ambition to be President would Bankrupt Nigeria

Around August 2007, the newly elected governors of the 36 states of the
federation met and clamoured for the release and sharing of the excess crude
funds. The governors had been mounting pressure on the former President, Umaru
Yar’adua to approve the sharing of the money from excess crude oil sales, saying
that it would help them stabilise in their states which treasuries had been
looted by some of their predecessors.
According to them, injecting the excess funds into the economy would create job
opportunities for the teeming army of unemployed youths in the country. But the
Federal government through the CBN, under Professor Chukwuma Soludo refused to
budge stating that sharing the funds in the Excess Crude Account, ECA, may be
disastrous for the economy.
Fast-forward to February 2010. One of the first acts by Jonathan Goodluck upon
being made acting president was to approve the disbursal of $2 billion from the
country's windfall oil savings between the Federal and State governments.
Fuelling suspicion that the disbursal was an attempt to quieten those who might
otherwise seek to undermine him, a charge government and presidency officials
then strongly denied.

At the inception of his government, President Jonathan Goodluck inherited about
$7 billion in the Excess Crude Account.
The excess crude account stood at over $20 billion when Yar'Adua took over in
2007 but his administration regularly dipped into the account. Relatively high
oil price meant the money in the ECA remained at $20.1 billion at the end of
2008. The account has a balance of $20 billion as at January 2009. By December
2009, Former President Umaru Yar’adua had reduced the Account to $7.8 billion.
Then in February 2010, Jonathan Goodluck, then Acting President asked Federal,
States and Local governments to share $2 billion from an earlier balance of
$6.2 billion, leaving about $4.1 billion in the account.
In March 2010, he approved the disbursal of a further $1 billion from the
country's windfall oil savings, leaving about $3.1 billion in the account. The
move brings to $3 billion the total amount of Nigerian oil savings that
Jonathan approved for disbursal to the country's 36 states and government
agencies in one month!
Then on Friday, August 13 2010, the Accountant-General of the Federation,
Alhaji Ibrahim Dankwanbo announced to journalists shortly after the monthly
Federation Accounts Allocation Committee meeting, which was chaired by the new
Minister of State for Finance, Hajiya Yabawa Lawan-Wabi that the remaining $3
billion in the Excess Crude Account was depleted and shared among the Federal
and State Governments this month leaving only about $460 million in the
account.
$2 billion of it was shared among the three tiers of governments while $1
billion was set aside for the proposed Sovereign Wealth Fund which is yet to be
signed into law, he said.
The present administration is raising concern about Nigeria's commitment to
fiscal discipline. There are growing concerns that so much have been taken from
the Excess Crude Account without tangible improvement in the lives of
Nigerians.
Nigerians are asking; why is President Goodluck Jonathan in a hurry to deplete
The Excess Revenue Account accrued from revenue derived from Crude Oil Sales,
Petroleum Profit Tax (PPT) and Royalties over and above the budgeted benchmark
of the Federal Government of Nigeria for each year.
The logic for saving excess crude revenue, according to the CBN is that the oil
sector is highly volatile when one considers the past experience of oil boom
and reckless spending of the 70s which caused depression around 1978 and forced
the country to start borrowing.
While ECA was rightly used to meet the shortfall in revenues caused by low oil
prices in 2008 and 2009, the worrying signs in terms of today's fiscal deficit
and depletion cannot be ignored.
Alarmingly, of the $17 or so billion withdrawn from the account since February
2009, it appears that only $5.3 billion was invested in any capital project –
Yar’adua’s emergency power project.
Even that investment has been somewhat opaque - Likened to Obasanjo’s
investment of $16billion on Independent Power Project, IPP - there was no
evidence that Yar’adua’s allocation actually went to the Power Holding Company
of Nigeria, PHCN.
The remaining withdrawals have been shared among the federal, state and local
governments. Likely, these have been spent on recurrent items.
Does it have anything to do with preparations for the 2011 election?
[b]In an address titled “Safe-guarding Nigeria’s Fiscal Health: Some
Considerations for the Present and the Future”, delivered to mark the 24th and
25th combined convocation ceremony of the University of Calabar, 08 April 2010,
former Minister of Finance and Director at the World Bank, Dr. Ngozi
Okonjo-Iweala pointed out that while ECA was rightly used to meet the shortfall
in revenues caused by low oil prices, the worrying signs in terms of fiscal
deficit and depletion cannot be ignored.
Warning against depleting Excess Crude Account, Okonjo-Iwealla stated that
Nigeria’s huge fiscal deficit, rising domestic debt, depletion of the Excess
Crude Account (ECA) and the distress in the banking sector are issues that
urgently need the attention of Jonathan’s cabinet.
Obviously, the absence of cranial matter between the ears of President Jonathan
Goodluck means that nothing stopped this warning from going in through one ear
and escaping through the other ear.
Alternatively, it could be that Jonathans Ambition to be President would
Bankrupt Nigeria.
More than one hundred days into his presidency it is now apparent that
President Goodluck Jonathan has the ambition to remain president beyond 2011
despite his party’s zoning agreement.
Let me repeat for emphasis:
At the inception of his government, President Jonathan Goodluck inherited about
$7 billion in the ECA Account. $3billion and later another $1billion was shared
among the State and Federal Government immediately Jonathan got into office as
part of the agreement reached with the governors for them to allow him become
Acting President leaving a balance of $3billion.
And now, in preparation for the 2011 election, the balance has been
squandered!
Nigerians have cause to be worried as our Federal Government’s domestic debt
amounted to N1.75 trillion naira or US$13.6 billion at the end of 2006 but by
the end of 2009, it had virtually doubled to N3.23 trillion or US$21.8.
Today, foreign debt is also rising. Few years after repaying huge foreign
debts, the country’s external loan is to reach $9.4 billion this year based on
a proposed 2010 borrowing plan of Jonathan’s Federal Government.
In a letter to the National Assembly dated August 4, 2010, President Goodluck
Jonathan requested the legislature to approve external borrowing of $5.242
billion in addition to the present $4.2 billion foreign debt owed by the
country.
And observers are asking: what is going on?
Jonathan spends like a drunken sailor!
Not done yet, President Jonathan Goodluck has earmarked $154.3 million or N23.2
billion for the purchase of three new jets for the Presidential Air Fleet. The
planes, include a Gulfstream G550 and two new Falcons 7X Aircraft.
This notwithstanding that the presidential fleet currently boasts of eight
aircraft - including a 70-tonne Boeing business jet bought in 2006 by former
President Olusegun Obasanjo, the Gulfstream V, and Gulfstream IVSP, and two
Falcon 900s.
Not too long ago, the INEC under Iwu (Prof. Maurice Iwu) requested a "paltry"
sum of N3 billion. Now, Professor Atahiru Jega is jumping the figure to N72
billion. Finally, N87.72 billion was approved for Jega.
This notwithstanding that a third world country like Nigeria, Bangladesh
registered 80 million voters at a cost of $65 million in 2008 and today the
good old Prof. Jega needs $500 million to register 65 million voters
Thirdly, As Nigerians cry out that the Federal Government has budgeted
N10billion Naira for Nigeria@50 celebrations, Jonathan reduced it to N6.5
billion, then N9.5billion. Finally Nigerians learnt that N17 Billion would
actually be spent on the jamboree. [/b] Again I emphasize; Nigerians should carefully monitor President Jonathan
Goodluck. I have the feeling that by the time Goodluck Jonathan finishes with
Nigeria, not only will the treasury be empty, we will be at the pre-1999 level
of debt!
Goodbye to Excess Crude Account
President Olusegun Obasanjo created the Excess Crude Account in 2004 into which
oil revenue in excess of budgeted benchmarks, which were invariably set below
the high international market price the country enjoyed virtually all through
his eight-year tenure, was deposited.
There was much opposition to the account led by the Hamman Tukur of the Revenue
Mobilization Allocation and Fiscal Commission (RMAFC) on grounds that it was,
at best, of dubious legality because our constitution stipulates that all
revenues collected by the Federal Government should go to the Federation
Account. Obasanjo still went ahead presumably because the account would, at
least ostensibly, enable the country save for rainy days.
The account peaked around $20 billion in January 2007.
The logic for saving excess crude revenue, according to the CBN is that the oil
sector is highly volatile when one considers the past experience of oil boom
and reckless spending of the 70s which caused depression around 1978 and forced
the country to start borrowing. That incident also ushered in the famous
austerity measure and the rate of abandoned projects when the oil price crashed
with nothing to fall back on as the country did not save for the rainy day.
However, the illegality of the Excess Crude Oil Account and the uses it is put
into, are among issues everyone talked about, and yet nobody did anything about
them. For years Nigerians, including the Revenue Mobilisation Allocation and
Fiscal Commission (RMAFC), noted the illegality, but no action followed.
At one time a member of the House of Representatives condemned the National
Economic Council's approval of an illegal removal of $5.3 billion from the
Excess Crude Oil Account purportedly for emergency power projects under Late
President Umaru Yar’adua.
Hon. Patrick Obahiagbon pointed out the illegality saying that the withdrawal
violated Section 162 (3) of the Constitution which states: "Any amount standing
to the credit of the Federation Account shall be distributed among the Federal
and State Governments and the local government councils in each State on such
terms and in such manner as may be prescribed by the National Assembly."
More elaborate provisions are in Section 80 (1) "All revenues or other moneys
raised or received by the Federation (not being revenues or other moneys
payable under this Constitution or any Act of the National Assembly into any
other public fund of the Federation established for a specific purpose) shall
be paid into and from one Consolidated Revenue Fund of the Federation.
(2) No moneys shall be withdrawn from the Consolidated Revenue Fund of the
Federation except to meet expenditure that is charged upon the fund by this
Constitution or where the issue of Appropriation Act or an Act passed in
pursuance of section 81 of this Constitution.
(3) No moneys shall be withdrawn from any public fund of the Federation, other
than the Consolidated Revenue Fund of the Federation, unless the issue of the
moneys has been authorised by an Act of the National Assembly.
(4) No moneys shall be withdrawn from the Consolidated Revenue Fund or any
other fund of the Federation, except in the manner prescribed by the National
Assembly."
Governor Jonah Jang of Plateau State, a member of the National Economic
Council, equally condemned the retention of the illegal account from which he
aided the award of $5.3 billion to the Federal Government. He, like other
Governors, usurped the powers of State Assemblies to allocate state funds for
expenditure in Sections 120 and 121.
Like General Ibrahim Babangida’s dedicated accounts, the excess crude account
was wantonly abused because there is no clear law on how the money should be
used. Between the President and the Governors, they can draw from the account
as they please. An account that holds billions of idle dollars will not escape
the attention of even an angel.
Today the savings in the account is finished!
Good riddance?
elsdan, @yahoo.com
Daniel Elombah
Publisher: www.elombah.com
(A Nigerian Perspective on world affairs)
Office: JE Stevenson Solicitors
Marble Arch, London +44-0-7958588018

mikeansy:

why is dawodu.com any better than elombah.com?

Gbawe:

For the sake of factual balance , and in fairness to Jonathan, Mr. President , even as he has been "settling" the Governors with ECA funds, has not "blew away $27 billion Foreign reserve in 8 months".

There was around $7 billion in the ECA when Jonathan became acting President.

mistakay:

  this is a blatant lie.you have an old link showing 7 billion.The current link is showing us 27 billion.Unlesss the Federal Government Dispute the figures it remains the fact. The presidency will not keep mum when a major newspaper like daily trust publishes false hood,no way!

Beaf:

^
Elombah?
Next thing Gbawe will begin quoting blogs and NL's romance section!

IBB people = Foolish people.

mistakay:

 this is a blatant lie.you have an old link showing 7 billion.The current link is showing us 27 billion.Unlesss the Federal Government Dispute the figures it remains the fact. The presidency will not keep mum when a major newspaper like daily trust publishes false hood,no way!

Beaf:

Are you cracking a new kind of joke? What part of the Nigerian constitution mentions the excess crude account?
It it an ad hoc arrangement. Before arguing, you should be conversant with what the Revenue Formula says. [size=14pt]In fact, a Supreme Court verdict in April 2002 on the "Resources Control Suit" nullified any provisions for Special Funds in any type of Revenue Allocation formula. Therefore Excess Crude Account is illegal.[/size]
http://www.dawodu.com/aluko19.htm

IBB people = Foolish people.

koruji:

It seems you are confused. Show us the link instead of pounding tables with your fist. You got both facts in your original post wrong. These are the facts:
1) ECA not Foreign reserve;
2) $7 billion not $27 billion;
3) Whoever you are working for would have done the same or even worse under the circumstances!

mistakay:

 this is a blatant lie.you have an old link showing 7 billion.The current link is showing us 27 billion.Unlesss the Federal Government Dispute the figures it remains the fact. The presidency will not keep mum when a major newspaper like daily trust publishes false hood,no way!

President Goodluck Jonathan has released about $27 billion to governors from the Excess Crude Oil Account (ECA) between January and now, leaving a balance of $450 million in the account.

monkeyleg:

Beaf,
Leave this blind support for GJ, he is from my area as well, but does not represent the best Nigeria can produce. He has been extremely wasteful, and will not get my support, come 2011.

Beaf:

^
Dude, I have given you the exact name of the suit. Google it.
The Supreme Court is the final interpreter of the constitution anything else is hot air and desperation.

80. (1) All revenues or other moneys raised or received by the Federation (not being revenues or other moneys payable under this Constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation.

mikeansy:

Quite frankly the issue at stake is not whether it is 27 or 17 or 7 or 0.7 Billion. The issue at stake here is that we have a President who places political calculations with the danger to promote corruption over what is a clear headed economic policy encouraged by his own economic team of experts.

It tells you a lot about the character of the man. He has no convictions just calculations

he has no principles so long as what he does favours his backward politics he does not care.

Surely 2011 Nigeria deserves better. Why can't Jonathan send a bill to NASS requesting the need to safegaurd our hard earned savings.

Beaf:

^
Your battery is weak. When will you begin quoting from the romance section in your wild eyed desperation?

"Daily Trust," a major paper?
That laughable piece of tribalistic junk that bristles with unhidden hatred for anything from Southern Nigeria? It's best recycled as toilet paper.
That paper is the starter of every dishonest rumour. GEJ met $6billion, Daily trust manufactured $27billion.

Dude, if you want to damage your brain, keep reading Daily trust. They will fill your mind with so much crap that madness will follow.

mikeansy:

That suit has nothing to add to this debate. It talks about Revenue Sharing Formula and says nothing about whether Government can set up special funds or not. I will be shocked if the supreme court comes to that conclusion because that will run directly contrary to section 80 of the Nigerian constitution which I will post below.

So if you are convinced that the court judgement you are quoting adds anything to this debate or whether government can set up fund please kindly quote what specific line says so. I have also told you that Revenue sharing formula is about how Government should share money it intends to share. It does not say Government must share everything.

mistakay:

What ever is your opinion of daily trust paper here is irrelevant.Fact is its the most widely read newspaper in this part of the country,why not allow the Govt. to deny themselves? If the daily trust paper is damaging brains should i assume then the other news papers feeding you fairly tales the that north is divided there is no unity blah blah blah are nourishing your brains with the vitamins that are responsible for these rantings that smack of joblessness?
Get a life man.

Beaf:

Did you actually try google? Because the internet is crawling with enough legal documents from lawyers on the matter.
You might wish to create your own interpretation, but you will only be wrestling with a rock. I don't want to waste my time arguing about things that legal experts have concluded about, over and over. Use google and educate yourself on this matter.

The Supreme court says [b]ALL[/b]special funds are illegal. Period.

Gbawe:

Those are the hallmark of unprincipled Political Jobbers promoted far above their rank by our political system of patronage that shun leaders of vision and conviction in preference for "business as Usual " stooges who will ensure that funds meant to develop Nigeria will always be corruptly diverted into private coffers.

mikeansy:

Quite frankly the issue at stake is not whether it is 27 or 17 or 7 or 0.7 Billion. The issue at stake here is that we have a President who places political calculations with the danger to promote corruption over what is a clear headed economic policy encouraged by his own economic team of experts.

It tells you a lot about the character of the man. He has no convictions just calculations

he has no principles so long as what he does favours his backward politics he does not care.

Surely 2011 Nigeria deserves better. Why can't Jonathan send a bill to NASS requesting the need to safegaurd our hard earned savings.