At least 24 states of the federation will not be able to pay workers salaries this year without having to wait for federal allocations from the central government, findings by The PUNCH have revealed.

Only 11 out of the 36 state governments of the federation can independently pay their workers’ salaries without depending on federal allocations, according to an analysis of the state governments’ approved budgets for the 2024 fiscal year.

The states with robust internal revenue are Lagos, Kano, Anambra, Edo, Enugu, Imo, Kaduna, Kwara, Osun, Ogun and Zamfara.

The approved budgets are also contained in Open States, a BudgIT-backed website that serves as a repository of government budget data.

While the budgets of 35 states have been made public, Rivers State budget could not be accessed neither has it also been uploaded the platform.

According to the analysis the budgets data, 24 states cannot fund salaries payments from their Internally-Generated Revenue and, as such, may have to rely on the Federal Government allocations or borrowing from banks and related institutions.

The development also means that the respective wage bills of the affected states surpassed their various IGRs, raising concerns about workers productivity and state governments’ efficiency in internal revenue generation.

The 24 states are Bayelsa, Ondo, Yobe, Sokoto, Taraba, Plateau, Oyo, Niger, Nasarawa, Kogi, Kebbi, Katsina, Jigawa, Gombe, Ekiti, Ebonyi, Borno, Benue, Bauchi, Adamawa, Akwa-Ibom, Cross River, Abia, and Delta.

The development is coming amidst clamour for wage increase by labour unions at both the federal and state levels, following the rising cost of living on the aftermath of fuel subsidy removal and unification of the foreign exchange markets by the current administration.

The Nigerian Labour Congress has consistently maintained that if inflation continues to rise, the organised labour may have no choice but to insist on a new minimum wage of N1m for Nigerian workers. The government however has rejected the demand.

In the first half of 2023, state governments borrowed about N46.17bn from three banks to pay salaries between January and June 2023. The findings were based on an analysis of the half-year 2023 financial statements of Access Bank Plc, Fidelity Bank, and Zenith Bank Plc

The PUNCH observed that the states borrowed the most from Access Bank in six months, with a record of N42.97bn loan.

This was followed by Zenith Bank (N1.78bn borrowed) and Fidelity Bank (N1.42bn borrowed) within the six-month period.

In 2023, state governors got the most FAAC allocations in at least seven years. The rise in FAAC allocations to the three tiers of government especially states followed the petrol subsidy removal and currency reforms of the current administration. The reforms have reportedly led to a 40 per cent boost in income.

Experts believe the projected revenue increase should have reduced state governments’ appetite for more borrowings.

In an interview recently, Kaduna State Governor, Uba Sani, claimed that state governments were borrowing to salaries in the past but the removal of fuel subsidies had put an end to such borrowing.

“Every governor in Nigeria is getting more money than we used to get. Before President Bola Tinubu removed the fuel subsidy, in Kaduna State, precisely in May 2023, we were borrowing to pay salaries but immediately after the subsidy removal, after paying salaries without borrowing, we had a surplus of money.”

However, despite the improved funding, no fewer than 32 states indicated plans to borrow N2.78tn from domestic and external institutions to fund their 2024 budget.

According to further analysis of the states budgets, the affected 24 states will spend N1.48tn on salaries in 2024, while they plan to make N914bn IGR. This means the states will need N566bn from either federal allocations or borrowing to complete the payment of salaries.

The breakdown of data shows that Bayelsa State with projected IGR of N23.9bn will need money to pay its workers N69.12bn this year. Ondo State with projected internal revenue of N33.6bn will also need extra money to fund its N56.76bn annual wage bill, while Yobe State will fund its N42.86bn wage bill from its projected IGR of N14.55bn and federal allocation or borrowing.

Sokoto is expected to pay N46.9bn salaries from its anticipated internal revenue of N37.1bn and partial funding from allocation/loan, while Taraba will obtain extra funding to pay its workers N54.47bn from its internal revenue of N27.8bn. Plateau with a projected revenue of N38.89bn must get federal government allocation o clear its wage bill of N52.25bn.

Also, the Oyo State will pay N132.67bn to workers after generating N92.79bn in its coffers. The state will need additional funding to complete this. Niger State with projected revenue of N61.87bn will need help to pay its civil servants N70.24bn while Nasarawa will pay its workers N54.45bn from its projected revenue of N43.3bn and another source.

Further analysis of the budget showed that states such as Kogi will pay its workers N65.07bn from its revenue of N30.23bn and federal allocation, while Kebbi will pay N37.3bn as salaries from its N17.8bn internal revenue and partial federal allocation. Katsina will spend N56.3bn on salaries from its N40bn internal revenue and federal allocation, while Jigawa will pay its workers N64.84bn from its revenue of N50.64bn and federal allocation.

 Gombe must pay salaries worth N35.27bn from its anticipated revenue of N22.32bn and federal allocation. Ekiti will spend N2.78bn on salaries from its N1.5bn revenue and federal allocation. Ebonyi’s N28.16bn wage bill surpasses its revenue of N25.1bn, while Borno will pay its workers N50.28bn from its revenue of N27.5bn and federal allocation.

Furthermore, Benue State with revenue of N23.9bn will pay N56.9bn as salaries, while Bauchi must pay salaries worth N46.9bn from its anticipated revenue of N37.1bn and federal allocation; Adamawa will spend N52bn on salaries from its N26.9bn revenue and allocation; Akwa-Ibom will spend N127.8bn on salaries from its N60bn revenue and allocation while Delta with projected revenue of N110.3bn must seek assistance to pay its workers N164.3bn.

Also, Abia with a revenue of N32.14bn will pay N47.83bn as salaries while Cross Rivers with projected revenue of N34.7bn must seek assistance to pay its workers N67.75bn.

According to the budget data, the 11 states which have higher IGR will conveniently fund their combined 980.68bn wage will their internal revenue of N2.34trn

Experts speak

In different forums, financial experts have raised concerns about states’ spending on recurrent expenditure highlighting the need to embrace financial innovations.

A development economist, Aliyu Ilias, said many states had yet to fully develop themselves as industrialised and marketable to attract investors.

Ilias urged governors to develop an area of strength they could leverage to attract foreign investments.

He said, “Going forward, what they could do is to identify one area of strength. For instance, Bayelsa has oil and should be able to attract investments. I think it is about policy. They should give the policy a chance that would allow people to come and invest. They should also create an attraction and develop an economic summit that will make sure they showcase and attract investors.”

An economist and former Vice-Chancellor of the University of Uyo, Prof Akpan Ekpo, also stressed that, “states have to think of new ways of increasing their IGRs. If they continue borrowing to pay salaries, it is not good for the economy.”

He urged the states to increase their revenue by increasing service delivery, which will attract more revenue.

Also reacting, the Managing Director of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said that the report indicated that a majority of states were not financially sustainable and were at risk of insolvency if there was no boost in investment.

“Even as we speak, many of them are also in debt and by the time they pay salaries and service their debts, there is not much left to improve on infrastructure. It’s in the interest of the sustainability of the states for them to be more creative in generating more revenue and attracting more investment to their states so that they can generate more revenue.

“Secondly, we also need to address the issue of fiscal federalism because some of the states don’t have power over some resources in their domain and can’t bring investors into it. For instance, mining is controlled mainly by the federal government, you get permission from them and revenue is remitted to them. So we need to revisit the issue of restructuring to help states have more control over resources within their domain.

Continuing, the economist stated that the state governors should take a cue from the Federal Government to reduce its bloated staff and political appointees.

“Most of these states have heavy overhead and they have very bloated bureaucracy, political appointees and they are putting a lot of pressure on their resources, so they have to do some rationalisation on their staff, many of them don’t need more than 50 per cent of their workforce but for political reasons, they put all manner of characters on their payroll including the local government. They have to look at that and take a cue from the Federal Government on the Oronsaye report.”

[Punch]

In keeping with his dedicated efforts to remove obstacles to investments in Nigeria, harness the nation’s resources and diversify the economy for the benefit of all Nigerians, His Excellency, President Bola Ahmed Tinubu has executed Policy Directives to improve the investment climate and position Nigeria as the preferred investment destination for the oil & gas sector in Africa.

Following extensive engagements, analyses, and benchmarking with other jurisdictions, the President has initiated the amendment of primary legislation to introduce fiscal incentives for oil & gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements. Recognizing the urgency to accelerate investments, the President has directed as follows:

(1) ⁠Introduction of fiscal incentives for non-associated gas, midstream and deepwater developments.

(2) ⁠Streamlining of contracting process to compress the contracting cycle to six months.

(3) ⁠The application of the local content requirements without hindering investments or the cost competitiveness.

The details of these Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation.

These incentives were developed in collaboration with the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum, Federal Ministry of Budget and Economic Planning, Federal Inland Revenue Service, the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Commission, and the Nigerian Content Development and Monitoring Board.

The Special Adviser to the President on Energy has been directed to continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe.

Chief Ajuri Ngelale

Special Adviser to the President

(Media & Publicity)

March 6, 2024

The Senate President, Godswill Akpabio, on Wednesday, said the insecurity in the country is not in any way connected to President Bola Tinubu.

He insisted that insecurity has drastically decreased since Tinubu took over office.

Akpabio argued that the present attacks are an aberration and no longer on the scale they used to be.

He stated this while contributing to the debate on a motion on the killing of 50 persons by suspected terrorists masquerading as herdsmen and increasing insecurity in Kwande, Ukum, Logo, and Katsina-Ala local government areas of the Benue State.

The motion was sponsored by Senator Emmanuel Udende (APC-Benue North East).

Akpabio said: “The primary responsibility of the state government is to use the security vote to ensure that the security of lives and properties in Benue state is protected.

“The first line of thought is the government of Benue as Senator Udende brought, we have not heard any comments from the government of Benue.

“If 50 people have been killed and communities have been attacked, we will expect that the state government will marshal out plans with the immediate security operatives within the affected state and see what they can do before bringing it to the President.

“And I want to assure you that President Bola Tinubu, though he has not stayed long in office, is supportive of the activities of the Armed Forces, and by the time the Senate meets with him in conjunction with the House of Representatives, I believe that the resolutions that we come out will benefit the entire country.

“It is a fact that since his assumption of duties, insecurity has abated, and major attacks are no longer taking place, but this one is just an aberration, and it will be brought to an end.

“I assure the good people of the areas affected that this matter is now on the floor of the Senate, and we are taking serious actions with the presidency to ensure that normalcy is restored to the areas and the victims are also taken care of.”

President Bola Ahmed Tinubu has executed Policy Directives to improve the investment climate and position Nigeria as the preferred investment destination for the oil and gas sector in Africa.

Naija News reports that this was made known in a statement signed by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale.

The statement adds: “Following extensive engagements, analyses, and benchmarking with other jurisdictions, the President has initiated the amendment of primary legislation to introduce fiscal incentives for oil & gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.

“Recognizing the urgency to accelerate investments, the President has directed as follows:

(1) ⁠Introduction of fiscal incentives for non-associated gas, midstream and deepwater developments.

(2) ⁠Streamlining of contracting process to compress the contracting cycle to six months.

(3) ⁠The application of the local content requirements without hindering investments or the cost competitiveness.

“The details of these Policy Directives will be gazetted and communicated by the Federal Ministry of Information and National Orientation.

“These incentives were developed in collaboration with the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum, Federal Ministry of Budget and Economic Planning, Federal Inland Revenue Service, the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Commission, and the Nigerian Content Development and Monitoring Board.”

Ngelale disclosed that the Special Adviser to the President on Energy has been directed to continue coordinating the aforementioned stakeholders to ensure the implementation of these directives within a stipulated timeframe.

[NaijaNews]

Former U.S. president, Donald Trump, cemented his position as the Republican Party’s all-but-certain nominee for November’s general election after sweeping the Super Tuesday primary contests.

As the crowd chanted “USA! USA,’’ Trump said voters had delivered him an amazing night.

The results set the stage for a White House rematch between Trump and the U.S. President, Joe Biden, who as the first-term incumbent, had no real rivals for the Democratic Party’s nomination.

Trump easily defeated his last remaining major challenger, Nikki Haley, in primaries held in a slew of States, including California, Texas, Maine, Massachusetts, Virginia and North Carolina.

Other states include; Oklahoma, North Dakota, Minnesota, Colorado, Alabama and Tennessee, according to unanimous projections by broadcasters based on initial vote counts.

Haley was only projected to have won the small north-eastern state of Vermont.

There was no suspense as Biden notched wins across the Democratic primaries held Tuesday except in the South Pacific territory of American Somoa, where the little known entrepreneur Jason Palmer prevailed.

“Tonight’s results leave the American people with a clear choice: Are we going to keep moving forward or will we allow Donald Trump to drag us backwards into the chaos.

“With a division, and darkness that defined his term in office? Biden asked in a statement.

Millions of people voted in the polls held in 16 of the 50 states, plus American Samoa.

Super Tuesday marked the largest single-day of nominating contests in the presidential primary campaign.

In the primary process, which began in January in Iowa, candidates were awarded delegates with each state they won.

One-third of the total delegates available for the Republican nomination were up for grabs on Tuesday.

A candidate needed at least 1,215 delegates out of 2,429 to secure their spot on the November ballot.

The nomination would then be made official at the Republican Party convention in July.

Before she became his 2024 opponent, Haley served in Trump’s administration as his ambassador to the United Nations.

She has waged a long-shot bid appealing to Republican moderates and independents but her campaign had not been able to gain enough momentum to pose a serious threat to Trump.

She lost the primary in her home state of South Carolina last month.

Tuesday’s contests were seen as her last stand.

Her losses fuelled the belief that her candidacy was no longer viable, with political watchers widely expecting her to drop out of the race,  though the primary process would continue in the weeks to come.

Haley’s campaign said the results of the Super Tuesday contests showed that the Republican Party still remained deeply divided.

“Unity is not achieved by simply claiming ‘we’re united.’ Today, in state after state, there remains a large bloc of Republican primary voters who are expressing deep concerns about Donald Trump.

The Haley campaign said this in a statement.

Neither Haley nor her campaign addressed whether she planned on staying in the race.

So far, the 2024 election had been dominated by domestic issues including immigration, crime, reproductive rights and the economy, with many saying they still feel the pinch of inflation.

Worries about Biden’s age, he is 81 and the oldest sitting president in U.S. history have increasingly weighed on his campaign amid physical and verbal blunders.

Trump, who at 77 is only four years younger than Biden, is facing deep legal problems.

He had been indicted in four separate criminal cases and charged with a total of 91 felony counts.

They included his attempts to overturn the results of the 2020 election, which Biden won.

In his Mar-a-Lago speech on Tuesday night, Trump repeated many of the same themes he hit on at his campaign rallies, including his demand that the U.S. border with Mexico be totally shut to migrants.

“In some ways,’’ he said, the U.S. had become a third-world country.

Africa’s highest ranked table-tennis player, Aruna Quadri on Wednesday won a second medal for Nigeria at the ongoing 13th African Games in Accra, Ghana.

This was after the 35-year-old Quadri fell 4-3 to Egypt’s Omar Assar in the final of the men’s table tennis singles event.

The contest between the two rivals lived up to expectations as they thrilled the audience with breathtaking skills.

Assar took the first set 11-8, while Quadri who is currently the world number 14 ranked player, bounced back to claim the second and third 11-2, 11-2.

The Egyptian clinched the fourth set 11-7 before Aruna won the fifth set 11-9.

Assar then won the last two sets 11-9, 11-0 to claim the gold medal.

Offiong Edem won Nigeria’s first medal on Tuesday when she clinched the bronze medal in the women’s singles event.

(NAN)

Former Vice President of Nigeria, Atiku Abubakar, has extended warm wishes to his former boss, Olusegun Obasanjo, on the occasion of his 87th birthday.

Atiku, who served as Vice President during Obasanjo’s tenure as President of Nigeria, highlighted the remarkable achievements of the seasoned leader, emphasizing that only a few Nigerians can match his contributions to the nation.

In a heartfelt message shared on his official X platform account, Atiku expressed admiration for Obasanjo’s dedication and leadership qualities, stating, “President Obasanjo’s life continues to be a lesson in dedication and qualitative leadership.”

He further prayed for Obasanjo’s continued good health and dedication to Nigeria and the world, saying, “May God bless you with many more years of health and dedication to Nigeria and the world.”

Atiku concluded his message by extending warm felicitations to his former boss on behalf of his family, acknowledging Obasanjo’s significant role in fostering unity and growth in Nigeria.

[NationalDaily]

LEICESTER City manager Enzo Maresca is a very happy man following the return to fitness of Super Eagles of Nigeria midfielder Wilfred Ndidi.

The Foxes claimed their first win in four Championship matches last night, beating Sunderland 1-0 at the Stadium of Light as Ndidi was introduced in the second half.

The Nigeria midfielder had been out since December, missing out on the Super Eagles’ Africa Cup of Nations campaign in Cote d’Ivoire.

Ndidi’s muscle injury also ruled him out of 10 Leicester City fixtures, four of which they lost.

Last night’s away victory kept Leicester City on top of the English second-tier, three points clear of second-placed Ipswich and five of third-placed Leeds United, with the first two spots guaranteed promotion to the Premier League.

“It’s an important win,” Maresca said in his post-match interview. “Especially after three defeats in a row. Sometimes you have to win games in an ugly way. [In the] first half we were quite good, in the second half we suffered, but in this moment, the win is so important.

“The first half, especially the first half an hour, was unbelievable. We had many chances, we missed and we have struggled to score goals in these games. But at the end, it was important to win the game.”

It was a welcome return for Ndidi in midfield, the Nigeria international managing 20 minutes in his first appearance since the end of December.

“I’m very happy. We need him, Wilf is so important to us so it’s good to have him back,” Maresca added.

[NaijaTimes]

The House of Representatives has raised alarms over the insufficient minimum wage for workers in the nation, stating that a monthly salary below N100,000 is not livable for any worker in the country.

Rep. Aliyu Madaki of NNPP-Kano State pointed out on Wednesday that the soaring inflation rates in the nation have rendered basic necessities like food, water, shelter, education, healthcare, transportation, and clothing unaffordable for the average Nigerian.

According to him, Nigeria is a participant in the United Nations Universal Declaration of Human Rights.

He referenced Article 23 of the declaration, which stipulates that every employed person is entitled to a fair and beneficial salary, guaranteeing that they and their families can live with dignity.

• “Recall when the fuel subsidy was removed in May 2023, the Federal Government offered palliatives to cushion its effects.
• “However, the ameliorative effect of this measure has been overtaken by the continued rise in the cost of goods and services.
• “We are aware that wage award was granted by the president recently, but the purchasing power is low, owing to the continued rise in the cost of living in the country and the fall of the naira.
• “We are also aware that Trade Economics in 2018 reported the living wage for an individual Nigerian and a Nigerian family to be N43,200 per month and N137,600 per month, respectively. This was a pre-subsidy removal report.
• “Further note that presently, no labourer can live in Nigeria with a wage of less than N100,000.00,” he said.

What you should know

Workers have had to contend with rising prices of goods and services since the removal of fuel subsidy by the Federal Government, with the attendant inflation and escalating cost of living eaten deep into their pockets and rendering their monthly wages inadequate to meet their basic needs.

• In June 2023, for instance, workers and some labour leaders demanded that the minimum wage be increased from N30,000 to N250,000, adding that the current situation would increase the demand for a salary review. The amount was later adjusted to N200,000 monthly.
• Meanwhile, the federal government inaugurated a 37-member tripartite committee on national minimum wage.
• The committee is tasked with the responsibility of recommending a new national minimum wage for Nigerian workers.
• The committee, comprising representatives of the federal and state governments, private sector and the organised labour, is to be chaired by Bukar Goni Aji, former head of service of the federation.

Jude Bellingham has been banned for two LaLiga games for “contemptuous or disrespectful attitudes towards a referee” after he received a red card in the aftermath of Real Madrid’s controversial 2-2 draw at Valencia, Spain’s competition committee confirmed on Wednesday.

The England international was shown a red card for arguing with referee Jesús Gil Manzano, who had already blown his whistle moments before Bellingham scored what would have been a game-winning header.

The referee’s post-match report said Bellingham had shown an “aggressive attitude” and allegedly shouted “It’s a f—ing goal” repeatedly.

The Spanish Football Federation’s Disciplinary Committee handed Bellingham a two-game ban – the minimum possible for the offence, under its rules – on Wednesday, for what it called “attitudes of disrespect or a lack of consideration towards the referee,” with a €700 fine for the club, and €600 for the player.

In evidence to the committee, Madrid argued that Bellingham had not displayed an aggressive attitude, saying that the player had only spoken once to the referee, and denied that his words were offensive or insulting.

The committee found that the club had not proven their case beyond doubt based on the evidence presented, and so the body consequently had to accept the referee’s interpretation of Bellingham’s conduct.

Bellingham will miss Madrid’s LaLiga games against Celta Vigo on Sunday and Osasuna on March 16, returning for their match with Athletic Club on March 31.

He is set to feature for Madrid in the Champions League round of 16 on Wednesday, as they host RB Leipzig in the second leg at the Bernabéu.

Bellingham is also one yellow card away from a possible one-match suspension in the Champions League after picking up two already this season.

[Leadership]