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FG, states, LGs to share $150m NLNG dividend

By on November 21, 2015

State governors have resolved that the sum of $150m (N29.55bn) out of the $400m (N78.8bn) Nigeria Liquefied Natural Gas dividend should be shared among the three tiers of government according to the sharing formula being used for the Federation Account.

They also agreed to invest the balance of $250m (N49.25bn) in the Sovereign Wealth Fund through the Nigerian Sovereign Investment Authority in order to increase the fund’s capital.

The decision was taken at a meeting of the National Economic Council presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja on Thursday.

Governor Rauf Aregbesola of Osun State briefed State House correspondents at the end of the meeting, which was attended by the 36 state governors or their deputies, and relevant ministers.

He was joined at the briefing by his Enugu State counterpart, Ifeanyi Ugwuanyi; Deputy Governor of Nasarawa State, Silas Agara; and the Minister of Budget and National Planning, Udo Udoma.

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

“The 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 if the current board is dissolved.

“The council resolved that the balance of $150m of the said $400m NLNG fund be shared accordingly in the prescribed formula of the Federation Account.”

Aregbesola also said the Accountant-General of the Federation reported to the council that the balance in the Excess Crude Account stood at $2.257bn and that not much change had been recorded since the last meeting.

He added that the council also mandated the Ministry of Finance to investigate the report of government agencies generating revenues in foreign currencies but remitting the naira equivalent into the Federation Account and report back to it.

The governor also said the Central Bank of Nigeria was mandated to embark on sensitisation and public enlightenment on the forex policy and relevant laws and regulations.

The step, he said, was necessary in order to guide traders and some people who were encountering challenges regarding the movement of foreign currencies across the nation’s borders.

Aregbesola said the directive was given when the attention of the council was drawn to the fact that some traders, particularly from the South East, were encountering challenges at the airports whenever they wanted to go about their business.

On the Treasury Single Account, he said the International Monetary Fund’s Senior Resident Representative and some other speakers ran the governors through a workshop.

He listed the topics of the papers presented to include: ‘Implementation of the TSA in states: Lessons and experience’; ‘Cash management and TSA reform: An overview of international practices’; as well as ‘Budgeting reforms’.

Aregbesola also reported that the Director-General of the National Pension Commission, Chinelo Anohu-Amazu, briefed the council on the activities of the agency.

He said, “The DG of PenCom briefed the council on the Contributory Pension Scheme’s implementation efforts and status of implementation by the states.

“Highlights of the briefing were 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.”
[Punch]