Home Uncategorized NEC to distribute $150m LNG funds amongst 3 tiers of govt

NEC to distribute $150m LNG funds amongst 3 tiers of govt

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ABUJA – National Economic Council, NEC has mandated the Central Bank of Nigeria, CBN to carry out sensitization programmes for Nigerian business community on the movement of foreign currencies across the nation’s borders and has all so called for the sharing of $150m LNG funds amongst 3 tiers of govt.

This directive followed some difficulties being encountered by many traders especially in the south eastern part of the country in the course of their businesses at various airports.

The NEC also resolved that the balance of $150m of the said $400m from the proceeds of Liquified Natural Gas, LNG, fund be shared amongst the federal, state and local governments according to the revenue sharing formular

The developments were communicated to Journalists by Governors Rauf Aregbesola of Osun State, Ifeanyi Ugwuanyi of Enugu state and the Minister of Budget and national planning, Senator Udo Udoma at the end of the meeting of the NEC that held at the presidential villa on Thursday presided over by the Vice President, Professor Yemi Osinbajo.

Aregbesola who spoke at the briefing also stated that a balance of $2.257bn was reportedly left in the Excess Crude Account, ECA.

He also revealed that NEC had directed the ministry of finance to investigate Naira remittances made several government agencies that transacted in dollars and report back to it.

He said: “At the end of the NEC meeting today, the Accountant-General of the Federation reported that the balance of the ECA stood at $2.257bn and that not much change from the last report.

“On the report of government agencies generating revenues in foreign currency but remitting naira equivalent into the federation account, the council mandated the Ministry of Finance to investigate and report back.

“The CBN was mandated to embark on sensitisation and public enlightenment on the forex policy and relevant laws and regulations so as to guide traders and some people who encounter challenges regarding the movement of foreign currency across the nation’s borders. We understood that some traders particularly in the East encounter challenges at the airports when they intend to go about their businesses.

“The Managing Director of the Sovereign Wealth Fund Authority presented the status report on the Nigerian Sovereign Investment Authority to the council. After due deliberations on the report, the council agreed that $250m from the $400m LNG dividend be invested in the Nigerian Sovereign Investment Authority to increase its capital.

“Council directed the Minister of Finance to constitute an executive nomination committee and work in consultation with NEC to appoint appropriate persons to take over as board members of the NSIA of the current board is dissolved.

“Council resolved that the balance of $150m of the said $400m LNG fund be shared accordingly in the prescribed formulae at the Federation Account.”

The governor also stated that NEC had briefings and presentations on both the pension funds and Treasury Single Account, TSA.

“The DG of PENCOM briefed the council on the contributory pension scheme implementation effort and status of implementation by the states. Highlight of the briefing was on the sustainability of the pension arrangement, scorecards of the states in the implementation of the scheme, the challenges being faced by the states, opportunities and also the steps towards full implementation by the states.

“The briefing also highlighted the need for the states to provide legal frameworks such as enacting state pension laws by those who have not done so, establishment of states pension agencies, consistent remittance of both employees and employers contributions and also full compliance of all provisions of the pension scheme.

“A workshop on TSA for state governors. The IMF Senior Resident Representative presented a paper on the TSA to the council. Presentations were made on the listed sub topics: implementation of TSA in states: lessons and experience; cash management and TSA reform: an overview of international practice; and budgeting reforms.

“On AOB, the need to reconstitute the members of the governing board of the Niger Delta Power Holding Company was discussed and the Vice President called for the nomination of new board members based on the six geo political zones”, he said.

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