Contradicting again

[gogannaka]

The Federal Government has borrowed US $915 million from the World Bank to finance an expected deficit in the 2010 budget, it emerged yesterday.

Acting President Goodluck Jonathan sent a letter to the Speaker of the House of Representatives seeking approval to borrow the money.

Jonathan said the money was needed because Nigeria was in dire need of funds to finance an infrastructure deficit, which he said is critical to rapid development. He also said the credit is highly concessionary, offered by multilateral agencies to which Nigeria belongs and commits substantial resources as affiliation fees.

Jonathan said in the letter, "The World Bank portfolio of the facilities totalling $915 million out of which $179 million would be drawn in fiscal 2010 is of particular essence as it would be deployed to Urban Water and Transport, Human Capacity Development and Power infrastructure projects across the country." He said the borrowing plan was in consonance with due process and appealed to the House of Representatives to approve it. The total budget deficit in the 2010 budget stands at N1.3 trillion naira, while the whole budget is N4.06 trillion naira.
Meanwhile, the Acting President is expected to sign the 2010 budget at 10am today at the Presidential Villa. This followed a meeting between him and the leadership of the National Assembly on Tuesday, during which the lawmakers agreed to remove projects that were inserted in the budget without the knowledge of the executive.

Jonathan was reportedly not happy with the padding of the budget by the appropriation committees of the two chambers, saying they might have taken advantage of President Umaru Yar'adua's illness.

Passage of the budget, which was approved by the National Assembly and forwarded to Jonathan last month, has been delayed for weeks due to differences between the Presidency and the lawmakers.

Minister of State for Information and Communications Labaran Maku, while briefing reporters shortly after the Federal Executive Council meeting yesterday, said the budget would be signed before the week runs out. He said Jonathan was unable to assent to the budget because of certain discrepancies which he said have to be sorted out.

But later yesterday, Jonathan's spokesman Ima Niboro came up with a terse statement saying the budget would be signed today by 10 am. "Budget to be signed tomorrow by 10 am", Niboro said in the statement.

"The Acting President told us that the National Assembly has forwarded the approved budget which the executive arm is looking at, so from what the Acting President told council, the leadership of the National Assembly and the presidency are discussing on the areas of discrepancies and we expect that between now and some few days, the budget will be signed into law because we do not have a lot of time to wait. Already we are in the month of April, the nation is expecting a lot of activities to regenerate the economy and give life to socio-economic activities in the country," Maku said.

The budget aims to increase expenditure by 50 percent this year as Nigeria tries to spend its way out of a downturn, but the increase risks pushing the country to a budget deficit of more than 5 percent.

On the golden jubilee anniversary, Maku said the council had received the report of the presidential committee chaired by the Secretary to Government of Federation Mahmud Yayale Ahmed.

He said the council called on Nigerians to be mobilized to celebrate the golden jubilee of the nation. "The state governments are expected to draw up their own programs as well. The logo would also be unveiled very soon," Maku said.

On the recent trip of the acting President to United States, foreign affairs Minister Odein Ajumogobia said the trip had tangible benefits to Nigeria. "The tangible benefit of the Acting President's trip to US is something we have to work on In terms of follow up, in terms of trying to engage our partners to address our domestic issues of power, infrastructure and so on and that is what this trip did," he said.

[gogannaka]

Acting President Goodluck Jonathan yesterday signed in to law N4.6 trillion budget for 2010 just as Finance Minister Olusegun Aganga denied taking $bn loan from the World Bank to finance an expected deficit in the budget.
Aganga said the Federal Government intended to fund the budget deficit of about N1.53 trillion by selling government's assets and domestic borrowing.

"We are not borrowing a $bn to fund the budget, I think what they are referring to is something which we are working with the World Bank on and the World Bank as you know helps a number of developing countries and that is just a quantification of the work they are doing which is broken down to quite a few segments, maybe eight or nine of them. So it is not one billion dollars borrowing upfront, it doesn't work like that. It has nothing to do with the budget.
Aganga said the government is also looking at other sources of revenue including raising a bond this year and going to the international capital market adding that the budget deficit is growing at an alarming rate.

While signing the budget in the Presidential Villa, Abuja, Jonathan said the 2010 budget will accelerate Nigeria's economic recovery through targeted fiscal interventions aimed at stimulating the economy, sustaining private sector growth and enhancing the pace of national development.

The ceremony was witnessed by the President of the Senate, Senator David Mark, deputy Speaker of the House of Representatives, Usman Bayero Nafada, the Deputy Senate President, Senator Ike Ekweremadu, as well as other leaders of the National Assembly.

The budget was predicated on government's economic outlook for the fiscal year including oil production capacity of 2.35m barrels per day, oil price benchmark of $67 per barrel and an average exchange rate of N150 to the US dollar.

The budget includes N1.85 trillion for capital expenditure and N2.077 trillion for recurrent, non-debt expenditure.

Jonathan said increased emphasis will be placed on monitoring the deliverables of MDAs by tracking the output of the financial and other resources appropriated under their stewardship.

"In this regard, the office of the Hon. Minister for Special Duties will be structured and empowered to undertake the task of monitoring and evaluation of all government projects and activities," he said.

He thanked both Chambers of the National Assembly for their contribution to the budgeting processes.

A budget proposal of N4.4trillion was presented to the National Assembly in November 2009, which the Legislature reviewed and passed an Appropriation Bill of N4.6trillion with a deficit of N1.52 trillion or 4.66%

[gogannaka]

The Federal Government is to borrow the total sum of $5.2 billion from foreign bodies to finance the deficit in the 2010 budget that was signed into law yesterday by Acting President Goodluck Jonathan.
Deputy Speaker of the House of Representatives Usman Bayero Nafada made this known during the debate on the request of the Acting President to borrow $1 billion from the World Bank.

The House approved the request by the government to collect $915million out of the $5.2 billion borrowing plan of the federal government from the World Bank.
This provoked members of the opposition All Nigeria People's Party (ANPP) who staged a walkout on the House in protest.

Rep. Ita Enang (PDP), chairman Rules and Business committee, said the Act establishing the Debt Management Office (DMO) allows the government to borrow and that it was part of the financing item of the 2010 budget approved by the National Assembly.

Minority Leader Rep. Muhammed Ali Ndume (ANPP, Borno) and his colleagues expressed stiff opposition to the loan and when it appears to them that the leadership of the House was bent on approving the request, the ANPP members left the chamber shortly after the request was approved through a controversial voice vote under the watch of Deputy Speaker Usman Bayero Nafada who presided over the day's session.

Briefing newsmen after they walked out, Rep. Ndume said history will bear them witness that they were not a party to the decision that will mortgage the future Nigerians yet unborn.

Jonathan had in a letter to the Speaker of the House sought approval to borrow the sum of $915 million from the World Bank in order to finance the 2010 budget deficit.

The letter reads in part, "The World Bank Portfolio of the facilities totaling $915 million out of which $179 million would be drawn in fiscal 2010, is of particular essence as it would be deployed to Urban Water and Transport, Human Capacity Development and Power infrastructure projects across the country."

The total budget deficit in the 2010 budget stood at N1.3 trillion naira while the whole budget is N4.06 trillion.

[Dan-Borno]

GGNK give us source please.

[gogannaka]

LOL, DB
Daily trust newspapers.

[gogannaka]

NNPC Explains Financial Status
•Senate demands 11 years audited account
From Kunle Akogun and Kunle Aderinokun in Abuja, 07.22.2010
Thisday Newspapers.

Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Austin Oniwon yesterday said some of the country's past leaders unilaterally approved the withdrawal of N1.5 trillion from the coffers of the corporation for various uses without due process.

Oniwon, who disclosed this at the investigative public hearing organised by Senate Joint Senate Committees on Petroleum Upstream and Downstream, had in a letter sent to the Federation Account Allocation
Committee (FAAC) confirmed that NNPC is indeed insolvent.
He said one of the past presidents unilaterally directed NNPC to release $18 million for the establishment of a Sugar Company without recourse to the National Assembly as provided for by the extant laws and that the money has not been paid to the corporation.

The NNPC boss added that the Corporation was also directed to release additional sum of N651 million for the take-off of the Department of Petroleum Resources (DPR) but that the money was not refunded.
Oniwon who was in company with the Minister of State for Finance,  Mr. Remi Babalola, at the investigative hearing, explained that the Corporation was unable to pay the N450 billion to Federation Account because of its unimpressive cash flow.
The NNPC, boss who maintained that corporation was in a position to pay the debt, however noted that it decided not to pay the sum as a result of the N1.5 trillion indebtedness.

Oniwon, in the letter addressed to Babalola, noted that "NNPC is facing financial difficulties evidenced by amongst others, the inability to pay for domestic crude as at when due and delays in settling bills for fuel imports; the financial difficulties essentially stem from disequilibrium between costs and cash inflow streams; that the corporation is owed substantial amounts as un-reimbursed subsidy on petroleum products.

"NNPC is insolvent as current liabilities exceeded current assets by N754 billion as of December 2008 and so; NNPC is incapable of repaying the N450 billion owed to the Federation Account unless it is reimbursed the N1.156 trillion from the Ministry of Finance."

Some of the lawmakers, who expressed displeasure over the propensity of Federal Government to direct NNPC to release funds without recourse to due process, ordered the Corporation to present its annual accounts since 1999. The lawmakers, who observed that NNPC Board of Directors was responsible for the approval of NNPC budget without recourse to the National Assembly, directed the NNPC boss to produce copies of the law authorising such approval within 24 hours.
-------------------------------------------------------------------------------------------------------------------------------------

Confusion

[gogannaka]

The Minister of state for Finance,the NNPC and the federal government have been contradicting themselves. Kindly go through the stories and see an example of our governance.
-------------------------------------------------------------------------------------------------------------------------------------
The Nigerian National Petroleum Corporation (NNPC) does not have enough money to fund its operations and is technically insolvent because of unpaid subsidies it is demanding from government, Remi Babalola, minister of state for finance said on Tuesday. The state owned oil behemoth, which oversees Nigeria's vast oil industry, is locked in a standoff with the Federal Government, saying it is owed more than N1 trillion in subsidies.

The Federation Accounts Allocation Committee (FAAC), which manages the distribution of Nigeria's oil revenues to the three tiers of government, says however that NNPC owes it a shortfall of N450 billion in unremitted crude oil receipts. "NNPC is insolvent as current liabilities exceed current assets," Babalola told a FAAC meeting in Abuja.

Read the full story here:
http://www.businessdayonline.com/index.php?option=com_content&view=article&id=12706:nnpc-is-insolvent-babalola&catid=1:latest-news&Itemid=18
-------------------------------------------------------------------------------------------------------------------------------------
In reply to the news above the NNPC and federal Government were quick to deny the reports.
http://www.businessdayonline.com/index.php?option=com_content&view=article&id=12736:fg-denies-nnpc-is-bankrupt&catid=1:latest-news&Itemid=18

The Minister of Information and Communications, Dora Akunyili has denied that the Nigerian National Petroleum Corporation (NNPC) is bankrupt.

"NNPC, from the auditor's account, is a growing concern and does not have solvency issue as a corporation. Therefore categorically NNPC is not insolvent."

"Given the nature of NNPC, there are regular transactions between the Federal Government and NNPC and as a result, there are always outstanding balances between the corporation and the Federal Government," she declared.
The minister made the clarifications on Wednesday in Abuja after the weekly meeting of the Federal Executive Council, the News Agency of Nigeria (NAN) reports Also addressing State House correspondents, the Minister of Finance, Olusegun Aganga, dismissed the insinuation that the NNPC could not meet its financial obligations to the Federal Government.

He also described as false, media reports that the Federal Government was indebted to the NNPC to the tune of N1.1trillion.

"We have so many different transactions between the NNPC and the Federal Government, in some form of the balances, it maybe a daily balance and in another, it may be a trade balance, you need to make all of these things up.

"What you saw yesterday was just balances arising from two types of transactions that we have made and that was the point they were trying to make yesterday, so it is incomplete and it doesn't give you the complete picture, once reconciliation is done, payment goes back and forth between the two entities.

This is a rebuttal of a statement credited yesterday to Remi Babalola, Minister of State for Finance to the effect that the NNPC did not have enough money to fund its operations and was technically insolvent because of unpaid subsidies it is demanding from government."
-------------------------------------------------------------------------------------------------------------------------------------
Here is what again is available at the NNPC website:
http://www.nnpcgroup.com/public-relations/news-a-update/354-nnpc-is-not-insolvent-

Contrary to a statement credited to the Hon. Minister of state for Finance, Mr. Remi Babalola that the NNPC is insolvent, the Management of the Corporation Tuesday canvassed strong arguments to the contrary.

Group General Manager Group Public Affairs of the Corporation Dr. Levi Ajuonuma stated that the Corporation was not incapable of meeting its financial obligations to its partners and stakeholders.

"We cannot be classified as insolvent when we have a healthy cash flow and we can pay for our crude and product importation obligations. While it is true that the national indebtedness to the NNPC is putting pressure on our operations, nonetheless we are able to meet all our obligations. We therefore cannot be said to be insolvent," Ajuonuma stated.     

He explained that the Corporation is being owed N1.156 trillion by the Federal Government as a result of petroleum subsidies which if reimbursed would enable the NNPC to offset the N450 billion debt being owed the Federation Account Allocation Committee, FAAC.

He said that the NNPC will continue to play its central role of ensuring steady and efficient supply of petroleum products throughout the country and urged Nigerians and its Joint Venture Partners to remain calm.
-------------------------------------------------------------------------------------------------------------------------------------
Later on, another confusion springs up:
http://www.thisdayonline.com/nview.php?id=178881

NNPC Explains Financial Status
From Kunle Akogun and Kunle Aderinokun in Abuja, 07.22.2010

Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Austin Oniwon yesterday said some of the country's past leaders unilaterally approved the withdrawal of N1.5 trillion from the coffers of the corporation for various uses without due process.

Oniwon, who disclosed this at the investigative public hearing organised by Senate Joint Senate Committees on Petroleum Upstream and Downstream, had in a letter sent to the Federation Account Allocation
Committee (FAAC) confirmed that NNPC is indeed insolvent.
He said one of the past presidents unilaterally directed NNPC to release $18 million for the establishment of a Sugar Company without recourse to the National Assembly as provided for by the extant laws and that the money has not been paid to the corporation.

The NNPC boss added that the Corporation was also directed to release additional sum of N651 million for the take-off of the Department of Petroleum Resources (DPR) but that the money was not refunded.
Oniwon who was in company with the Minister of State for Finance,  Mr. Remi Babalola, at the investigative hearing, explained that the Corporation was unable to pay the N450 billion to Federation Account because of its unimpressive cash flow.
The NNPC, boss who maintained that corporation was in a position to pay the debt, however noted that it decided not to pay the sum as a result of the N1.5 trillion indebtedness.

Oniwon, in the letter addressed to Babalola, noted that "NNPC is facing financial difficulties evidenced by amongst others, the inability to pay for domestic crude as at when due and delays in settling bills for fuel imports; the financial difficulties essentially stem from disequilibrium between costs and cash inflow streams; that the corporation is owed substantial amounts as un-reimbursed subsidy on petroleum products.

"NNPC is insolvent as current liabilities exceeded current assets by N754 billion as of December 2008 and so; NNPC is incapable of repaying the N450 billion owed to the Federation Account unless it is reimbursed the N1.156 trillion from the Ministry of Finance."

Some of the lawmakers, who expressed displeasure over the propensity of Federal Government to direct NNPC to release funds without recourse to due process, ordered the Corporation to present its annual accounts since 1999. The lawmakers, who observed that NNPC Board of Directors was responsible for the approval of NNPC budget without recourse to the National Assembly, directed the NNPC boss to produce copies of the law authorising such approval within 24 hours.
-------------------------------------------------------------------------------------------------------------------------------------

Confusion or incompetence?
Who will we believe.?

[Dan-Borno]

gogannaka, its neither confusion nor incompetence,
that is how things happen in this country.  when ever
the government is trying to do some funny things, it
gives a controversial lay, while the press and the poor
nigerian are busy discussing the issue, other things
are going under the carpet without notice.

rabu da su, kasan its election time, suna neman kudin
sata ne kawai.

[EMTL]

Assalamu alaikum, Allah Ya isa wannan katuwar muguwar malfa Allah (SWT) Ya sa ta bace ta zama tarihi nan kusa kadan.