Oyo State Governor Seyi Makinde has asserted that the federal government is not constitutionally superior to state governments, emphasizing that the Oyo government is best suited to determine what is good for its people.

During an emergency consultative stakeholders’ meeting in Ibadan, held at the Executive Chamber of the Governor’s Office, Governor Makinde addressed the implications of a recent Supreme Court judgment that granted autonomy to local government councils across Nigeria.

He highlighted a gap created by this judgment in relation to the Constitution of the Federal Republic of Nigeria.

“I’ve been reading a lot of sensational headlines in the newspapers,” Governor Makinde said.

“They claim, ‘The governors’ hands have been tied; this is a first for Nigeria.’

This morning, NULGE declared, ‘With this judgment, there’s now freedom in the land.'”

In the meeting, Governor Makinde proposed discussing the Supreme Court’s decision on the financial autonomy of local government councils.

He pointed out that the judgment has created a constitutional gap.

“We all swore to uphold the constitution,” he stated.

“But when laws conflict, it’s our duty to find our own solutions for transparency and effective operation. When elephants fight, it’s the grass that suffers.”

Governor Makinde recalled that since his administration began, Oyo State has conducted local government elections twice.

“When I was sworn in on May 29, 2019, I dissolved the local government councils,” he said. “The Supreme Court has now stated that governors do not have the right to dissolve these councils. So why did I dissolve them then? It was because elections were held into the LCDAs, and the Supreme Court has clarified that there are only 774 local governments in Nigeria.”

He emphasized the need to address confusion and ensure the stability of structures within the state. “We will address the major challenges at the local government levels and develop our own solutions,” he said.

“Addressing these challenges will ensure seamless implementation of processes that allow Oyo State to continue running smoothly.”

Governor Makinde also addressed the issue of local government elections in Oyo State, noting that the state does not have caretaker committees at the local level.

“We planned the elections meticulously so that not a single day was wasted,” he explained.

He reaffirmed the responsible administration in Oyo State and the state’s capability to make decisions that benefit its people.

“We don’t need the federal government to tell us what to do; we know what’s best for our people,” he declared.

“When we took over in 2019, the local governments were burdened with backlogs of salaries, gratuities, and pensions. Oyo State will emerge stronger from this.”

In conclusion, Governor Makinde stated, “Constitutionally, the federal government is not superior to the state government; their jurisdictions are coordinate. So, we will continue to do what is right in Oyo State, as we have been doing.”

[Tribune]

Akwa Ibom State Governor, Umo Eno, has described the recent Supreme Court judgment granting financial autonomy to local government areas as a welcome development and relief to state governments.

This is as he expressed concerns over its effective implementation as it relates to the ability of LGs to handle their financial responsibilities.

Governor Eno made the observations Monday evening while fielding questions from Government House correspondents at the Victor Attah International Airport, Uyo, upon his return to the state from a foreign official engagement.

“Since I assumed office, I’ve not touched any funds allocated to the local governments. The only challenge I envisage now, which we have to sit down and find a way around is how the local government workers would be paid promptly? How will primary school teachers be paid promptly? How do we clear the backlog that we have? I pray that we find a way around this.”

Eno added that the Supreme Court’s verdict on local government autonomy remains sacrosanct, being the pronouncement of the final court in the land.

He noted however, that the judgement would not impact on the Akwa Ibom State Government in anyway, adding that under his administration and previous years, local governments have been getting their due allocations, without any interference with the operations of the joint account.

The governor further explained that in furtherance to his ARISE agenda which places premium on rural development, his administration has channelled volumes of funds into offsetting arrears of gratuities, pensions, salaries and other entitlements to local government workers, noting that the autonomy granted the third tier of government is a relief to the state government.

He urged local governments, under the new arrangement, to take over the responsibility of prompt payment of salaries and other emoluments to teachers, health workers and other LG workers to avoid leaving unnecessary burden of arrears to successive governments.

He said, “The Supreme Court has made pronouncements. That’s the final court of the land, but for us in Akwa Ibom, honestly, I don’t see us having any issues. For me, this is a welcome development because I know how much we, as a state, support the local governments.

“Our ARISE Agenda is also cantered around developing the local government areas, so with this judgement, I feel relieved, but my concern is how they would bear the brunt of the autonomy.”

[Punch]

The Kremlin on Tuesday gave a cautious reaction to Ukrainian President Volodymyr Zelensky’s apparent invitation to a future peace summit, saying that Russia first needs to understand what Kyiv means before attending talks.

Story Highlights 

• The Nigerian presidency has spent at least N16.06 billion on foreign currencies for international trips under President Bola Tinubu’s administration, according to data from GovSpend by BudgIT. 

• From June 2023 to May 2024, the expenditures included significant amounts for the President, Vice President, First Lady, Chief of Staff, and the Presidential Air Fleet, with the President’s trips accounting for the majority at N10.93 billion. 

• The sharp depreciation of the naira, which has fallen by 70.3% against the dollar since May 2023, has significantly increased the cost of these international trips, highlighting the need for fiscal prudence amid ongoing economic challenges. 

The Presidency through the State House has spent at least N16.06 billion to buy foreign currencies for international trips in the past one year under the administration of President Bola Tinubu. 

This is according to an analysis of data from GovSpend, a platform by BudgIT, which tracks, analyses and presents Federal Government spending over time. 

Covering a period from June 23, 2023, to May 25, 2024, the data includes spending by the president, vice president, First Lady, and the Chief of Staff to the President.

It also includes the purchase of foreign exchange (forex) for the Presidential Air Fleet. 

In the 2024 budget, the State House, President, and Vice President have a total budgetary allocation of N14.5 billion for international trips. There is no allocation for the First Lady and Chief of Staff to the President for international travel. 

The GovSpend data shows that about N6.24 billion was spent in 2023 between June and December. By 2024, about N9.82 billion has been spent between January and May. 

It means that the Presidency has spent about 67.72% of its international trips budget in the first five months of 2024. 

What the data is saying 

President’s spending: The majority of the amount was spent by the president for his international trips. The President’s forex purchase was significantly higher, totalling N10.93 billion.

These funds were allocated for numerous international trips, including high-value purchases of foreign currency to support diplomatic missions and engagements abroad. 

The President’s spending includes N82.04 million for the purchase of $176,392.80 for a trip to Ghana on July 28, 2023.

For various other international trips and replenishments of foreign exchange reserves, amounts such as N152.37 million, N228.55 million, and N146.65 million were expended on August 4, 2023, for purchases of $200,000, $300,000, and $315,300, respectively.

At least four times, N197.70 million was utilized for the purchase of $1,000,000 for presidential trips dated July 19, 2023. Further expenditures include N71.74 million, N18.33 million, and N135.93 million for purchases of €300,000 each for the President’s trips on September 6, 2023. 

Vice President’s spending: The total expenditure for the Vice President amounted to N101.68 million. This includes expenses for purchasing foreign currency for various international trips and other related costs. On June 23, 2023, N58.66 million was allocated for the purchase of £1,000,000 (approx. $1,000,000) in UK Pounds for the Vice President. 

On February 24, 2024, an additional N426.88 million was used to acquire $483,277.00 for the Vice President’s trip to Switzerland. On September 6, 2023, N43.02 million was spent on the purchase of €300,000 for the Vice President’s trips. 

First Lady’s spending: The total expenditure for the First Lady’s international trips amounts to N623.05 million. On January 4, 2024, N149.79 million was allocated for the purchase of $152,831 for the First Lady’s trip to France. In March 2024, N202.39 million was spent on purchasing $126,834 for the First Lady’s trip to Mozambique. On February 9, 2024, N144.57 million was allocated for the purchase of $96,118 for the First Lady’s trip to Addis Ababa, Ethiopia. Additionally, in March 2024, N126.3 million was spent on purchasing $83,967 for the First Lady’s trip to London. 

Chief of Staff’s spending: The total amount spent by the Office of the Chief of Staff to the President was N59.24 million. This included expenditures for purchasing foreign currency for specific international engagements and preparatory activities for global forums such as the United Nations General Assembly.  

The Office of the Chief of Staff to the President also saw expenditures such as N46.51 million for $100,000 for presidential trips to the UK on August 10, 2023. 

Another allocation of N12.73 million was made for purchasing $79,740 for preparations towards Nigeria’s participation in the 78th session of the UNGA in the USA on November 22, 2023. 

Presidential Air Fleet: The expenditures for the Presidential Air Fleet were also substantial, amounting to N4.97 billion. This category reflects the operational needs and readiness of the Presidential Air Fleet, including regular high-value allocations for forex transit funds to support the fleet’s international activities and maintain its operational capacity. 

The Presidential Air Fleet received substantial funds for forex transit. Significant allocations include N387.60 million on August 15, 2023, N2 billion on August 16, 2023, and N713.22 million on August 29, 2023. 

Dollar dominates spending 

Based on the disclosed currency for some transactions, the dollar was the dominant foreign currency that was purchased as about N6.42 billion was spent to buy $9.98 million. 

The expenditures on UK Pounds were relatively lower, totalling N58.66 million for £1 million. For Euros, about N269.02 million was spent to get €1.2 million. 

The largest category of expenditure was on Forex Transit funds, amounting to over N9.42 billion. However, the type of foreign currency purchased was not disclosed.  

More Insights 

The exchange rate from the naira to the dollar has crashed by 70.3% so far under the administration of Bola Ahmed Tinubu. 

On May 30, 2023, the naira traded for N464.5/$1 on the official market. However, the naira hit a July low at the end of last week, closing at N1,563.80/$1 on Friday, July 12, 2024 

This steep decline in the value of the naira means that the cost of acquiring dollars has more than tripled within this period. 

This depreciation has had a profound impact on the expenses incurred for international trips by the Nigerian presidency. The substantial increase in the naira-to-dollar exchange rate means that more naira is needed to purchase the same amount of dollars as before. 

For example, if the presidency needed $1 million for an international trip in May 2023, the cost would have been N464.5 million.

By July 2024, the cost of the same $1 million would be N1.56 billion, except maybe the State House gets foreign currencies at a discount rate. 

The data raises critical questions about the prioritization of government spending, especially given the ongoing economic challenges faced by many Nigerians.

The substantial amounts dedicated to international trips highlight the high costs associated with maintaining diplomatic engagements and the operational needs of the Presidential Air Fleet.

The government’s commitment to maintaining a robust international presence is evident; however, this financial outlay also highlights the necessity for transparency and judicious use of public funds, and the need for a balance between necessary governmental functions and fiscal prudence. 

[Nairametrics]