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Nairaland Forum / Nairaland / General / Politics / Buhari's Bailout To The States Without Senate Approval (3978 Views)
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Re: Buhari's Bailout To The States Without Senate Approval by Azedplus(m): 11:56pm On Jul 12, 2015 |
aljharem: I don't think he has a limit expressly stated but will be guided by prevailing demand and circumstances.He has different pool or call it account to choose from for different purpose e.g ecological fund for environmental issues like flood ,just as he also can save for same purpose. Bear in mind some of this key decision are made as a team e.g the national economic forum/team;revenue mobilization,allocation and fiscal committee/commission (rmafc) etc forgeting some though as am not practising. It's a whole lot more than we think the fact is just that he chairs these team and his decision could be final .... Am sure if otherwise economists/lawyers would have raise concerns since . |
Re: Buhari's Bailout To The States Without Senate Approval by nduchucks: 11:57pm On Jul 12, 2015 |
The $2.1billion bailout was sourced from Intervention Funds typically made available by the CBN to revive the nation's economy or in this case to bailout the states from economic catastrophe. The national assembly does not need to approve these funds. Specifically, the N413.7bn ($2.1billion) is sourced from the recent LNG proceeds and the remaining N300 billion is a Central Bank-packaged special intervention fund. Back in 2010, for example, the CBN, in a bid to revive the nation's ailing economy, had set aside intervention funds amounting to N500 billion, for lending to Small and Medium Scale Enterprises (SMEs) and other critical sectors. The senate did not have to approve the spending because it had no appropriation duty to do so. In the case at hand, the bailout consists of N413.7billion special intervention funds and the balance of about N250billion to N300billion, which is a soft loan to states. The Senate has no role in the appropriation of these bailout funds. The Debt Management Office (DMO) is also expected to assist states to restructure over N660billion commercial loans as part of the bailout. President Buhari's approval of these funds is well within his constitutional authority. Additionally, there is full transparency as both the source of the funds and the recipients have been fully disclosed to the public. This is a far cry from potential criminal activities wherein, funds were moved willynilly from one NNPC account to the other without accountability. Make una chill, Change is here to stay. ![]() 3 Likes |
Re: Buhari's Bailout To The States Without Senate Approval by playboy99(m): 12:39am On Jul 13, 2015 |
henrysam:lol constitution or what did u call it.wen 7 waz greater dan 19 in ekiti y didn't u help dem with d constitution #ACE 2 Likes |
Re: Buhari's Bailout To The States Without Senate Approval by Amansu(f): 12:49am On Jul 13, 2015 |
Angel1977: Crying wolf where there was none! Money paid into the Federation Account was for the use of three-tier governments. No need for Senate approval. Should Nigeria stop functioning because ministers were not yet appointed? PS can do the join in the interim very well. Ask Okonjo to return the $2 billion she took from ECA without approval. 1 Like |
Re: Buhari's Bailout To The States Without Senate Approval by adetboy: 12:54am On Jul 13, 2015 |
OAM4J: I am really enlightened! Very simple and lucid explanation and also without insults! Thank you and God bless! 2 Likes |
Re: Buhari's Bailout To The States Without Senate Approval by Nobody: 6:56am On Jul 13, 2015 |
wirinet: You are sort of misrepresenting facts. First thing you should know is that at any given fiscal year, the Senate gives approval to money shared from the federation account by way of legislating/delibrating on and passing the budget. When the budget is approved, then it is legal for the Revenue Mobilization, Allocation, and Fiscal Commission, in conjunction with the Ministry of Finance to disburse such funds according to the already agreed/approved formula. |
Re: Buhari's Bailout To The States Without Senate Approval by wirinet(m): 7:26am On Jul 13, 2015 |
Martins301: You have no idea of what you are talking about. The Senate (a federal institution) has no say in how money from the federation account is shared. The money in the federation account belongs to all the Federating units and not the Federal Government. The states and federal government sends representatives to the monthly FMAFC meetings. It is here that the amount acrued the federation account for the previous month is presented and shared according to the agreed sharing formula. Even the proposal to save some money from the Federation Account into in the ECA does not have the approval of the States and so it was done illegally by the Obasanjo and Jonathan administrations. It has nothing to do with the Senate. I hope you are better enlightened. 3 Likes |
Re: Buhari's Bailout To The States Without Senate Approval by AshiwajuFoward: 7:35am On Jul 13, 2015 |
As long as Naija workers are paid and happy, na their wahala be dat. 1 Like 1 Share |
Re: Buhari's Bailout To The States Without Senate Approval by Nobody: 7:54am On Jul 13, 2015 |
wirinet: You are so loud you can't even hear yourself speak. Does Senate approve the national budget for every fiscal year? If your answer is yes then you can go join the rest dots or take a crash course in Nigeria Public Finance 101. By the way, where does RMAFC derive its powers from and which body approved it? |
Re: Buhari's Bailout To The States Without Senate Approval by PassingShot(m): 7:57am On Jul 13, 2015 |
OAM4J:This is the answer OP. 2 Likes |
Re: Buhari's Bailout To The States Without Senate Approval by EastLebanon(m): 8:29am On Jul 13, 2015 |
Had it been it's GEJ that did this,by now the broom sweepers will start foaming from their mouth. 1 Like |
Re: Buhari's Bailout To The States Without Senate Approval by AlPeter: 8:30am On Jul 13, 2015 |
WombRaiders:in summary the workers in Osun should suffer for Aregbesola's rascality abi? Try reason well abeg 1 Like |
Re: Buhari's Bailout To The States Without Senate Approval by Nobody: 8:53am On Jul 13, 2015 |
AlPeter: There is another thread here where your APC guys are justifying not paying any arears to the workers. Take it up with them. I did not state that the workers not to be paid but rather said that Osun State executive most cough out the money that it has embezzled and not to have our collective wealth used to cover this ineptitude. If you must know the FG dipped into our foriegn reserve to source for the bailout. The consequence of which the CBN can not meet the Forex reserves leading to further devaluation of the naira. As I post this Aregbe is not ready to pay more than a month salaries he is owing workers. So what is the bailout for? Is it to pay contractors or for state wages? The only solution is to impeach Aregbe and conduct an extensive probe of his adminstration from where stolen funds can be recovered and used to pay the state salaries. |
Re: Buhari's Bailout To The States Without Senate Approval by Nobody: 8:59am On Jul 13, 2015 |
AlPeter: See your fellow progressives in action https://www.nairaland.com/2447650/osun-workers-insist-minimum-two#35800383 They are defending Aregberascal's insistence to pay only one month out of 8 mths arears. |
Re: Buhari's Bailout To The States Without Senate Approval by wirinet(m): 9:11am On Jul 13, 2015 |
Martins301: This is the last time i would be educating you on Nigeria's Fiscal Federation. The Senate only approve Federal Government's Budget, it has no powers over the Federation account. The Federal Government presents the federal budget to the Senate, andn the Senate approves or modifies the Federal Budget as it deem fit. Meanwhile the State Assemblies also approves or modifies the state budgets. The National Budget you are talking about is the Federal Budget and not the Budget of the Federating units. I will not comment on this topic again, you can believe whatever you want to believe. 3 Likes |
Re: Buhari's Bailout To The States Without Senate Approval by disumusa: 9:17am On Jul 13, 2015 |
Chimezie250:this is not bihari intention , but trigger by saraki. |
Re: Buhari's Bailout To The States Without Senate Approval by fx45(m): 10:09am On Jul 13, 2015 |
AlPeter:They voted him in.... So they should suffer for their misguided actions. Next time, they should be able to vote with their heads |
Re: Buhari's Bailout To The States Without Senate Approval by AlPeter: 12:15am On Jul 15, 2015 |
WombRaiders:am with you in this and thanks for the links may I go fire for there 2 Likes |
Re: Buhari's Bailout To The States Without Senate Approval by betty202020(m): 12:57am On Jul 15, 2015 |
Angel1977:its buharis high handedness that will soon lead to state of anarchy . APC should continue to assassinate our democratic system by causing confusion in our legislative arm of government. |
Re: Buhari's Bailout To The States Without Senate Approval by Nobody: 1:22am On Jul 15, 2015 |
OAM4J:So, in essence, the money that was shared to the states shouldn't be called a 'bailout' since the money belonged to the states. Or were some FG funds also given to the states? |
Re: Buhari's Bailout To The States Without Senate Approval by omolami: 1:26am On Jul 15, 2015 |
THE NASS SHOULD IMPEACH BUHARI FOR DOLLING BAILOUT MONEY TO STATES WITHOUT SENATE APPROVAL. WHY WOULD SOMEONE WHO CALL HIMSELF MR INTEGRITY DO SUCH A THING? THIS IS NOT MILITARY ERA, ITS DEMOCRACY. MAY BE BUHARI NEEDS TO ATTEND NATIONAL DEMOCRATIC INSTITUTE FOR ORIENTATION FIRST BEFORE A CONTINUED RULE |
Re: Buhari's Bailout To The States Without Senate Approval by omolami: 1:34am On Jul 15, 2015 |
om4j you are wrong. Don't forget that the budgeted money is what the governors squandered that require bailout, hence, as you already agreed, money to be spent thereafter for the extra budget must be approved by the Senate. It is impeachable offence. |
Re: Buhari's Bailout To The States Without Senate Approval by naptu2: 2:32am On Jul 15, 2015 |
The Federal Government needs the approval of the National Assembly to spend money that belongs to the Federal Government. The state governments need the approval of the state assemblies to spend money that belongs to the states. The money that Buhari shared does not belong solely to the Federal Government. Money in the Federation Account belongs to the Federal Government, the state governments and the local governments. The constitution states that the money must be shared between the three tiers of government and it states how this is to be done. That's why this is not technically a bailout, because the state governments are getting money that belongs to them. National Assembly approval is only required if the Federal Government wants to spend its own share of the money. State assembly approval is only required if the state wants to spend its own share of the money. All that's required of the National Assembly is that they should approve a revenue sharing formula and this has been done since Obasanjo's tenure. Every month the Minister of Finance meets with state commissioners of finance and the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to share money in the Federation Account (Federation Account Allocation Committee [FAAC]) This does not require National Assembly approval. The FAAC has already met and approved the sharing of the funds. Also note that the Excess Crude Account is an unconstitutional account. The funds in the Excess Crude Account should have been paid into the Federation Account. C - Public Revenue http://www.nigeria-law.org/ConstitutionOfTheFederalRepublicOfNigeria.htm Note: the $2.1 billion LNG fund is from the Federation Account. http://sunnewsonline.com/new/presidential-bailout-for-states/ 1 Like |
Re: Buhari's Bailout To The States Without Senate Approval by OAM4J: 11:37am On Jul 15, 2015 |
CFCfan: True, the money is not fully a bailout in the full sense of it. Perhaps it was called a bailout because of the CBN component. The states were allowed to renegotiate their existing loans and also borrow more. |
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