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Ekiti Government To Borrow N3 Billion For UBEC Counterpart Funding

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The Ekiti State government has approved the borrowing of a sum of N3 billion to pay for the Universal Basic Education Commission (UBEC) counterpart funding.

The funding, according to statutory arrangements requires both the state and Federal Government to contribute an equal amount to be accessed by the state.

A statement signed by the Commissioner for Information, Muyiwa Olumilua, disclosed that the approval for the loan was given at the virtual meeting of the State executive council held in Ado Ekiti, on Thursday.

Olumilua said the loan is to enable Ekiti State Government meet up with its statutory 50% counterpart obligation towards the release of funds for UBEC/State Universal Basic Education Board (SUBEB) projects for the year 2019 and 2020.

He noted that the fiscal step became imperative on the premise that failure to pay the counterpart fund would disqualify the State from receiving her share of the UBEC/State Universal Basic Education funding.

The statement said: “Memorandum on the offer of N3, 031,076,059.82 term loan for 2019 and 2020 Ekiti State Government counterpart contribution for SUBEB/UBEC projects:

“Being a Federal and State Government partnership, both tiers of government are required to come up with their respective 50% contributions before the total sum is released to the State Government.

“It should be recalled that Governor Kayode Fayemi has substantially defrayed the outstanding counterpart funds for the years 2016, 2017 and 2018

UBEC/SUBEB projects, which was initially neglected by the previous

Administration and the repayment is still ongoing”.

Olumilua added that Governor Fayemi has constituted three separate monitoring units, tasked with the assignment of carrying out an infrastructure audit in the education sector, to determine the precise needs of the various schools.

The commissioner noted that the mandate of bodies include monitoring of execution of all SUBEB projects in the State, to ensure that all contracts award follow due process and duly executed .

Olumilua added that Fayemi also tendered the memorandum for the amendment of the Ekiti State Debt Management Law 2020 at the council to enable the state establishes State Debt

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Importation Tariff: Customs May Commence Reduction On Duties Paid On Imported Cars Next Week

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The Nigeria Customs has announced that the reduction of duties paid on imported vehicles may commence from next week.

According to a statement by the Comptroller General of Customs, Hameed Ali, while speaking to the news men in Abuja declared that the Agency is expecting an official instruction from the Ministry of finance any moment from now.

Hameed said the idea to reduce the tariff downward was to make business of importation easy for those bringing in cars from overseas.

He maintained that reduction of tariff on vehicle as contained in the finance act 2020 was created by the Commission.

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Nigerians To Pay More On Petroleum Products, Power Tariff In 2021 – FG

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The Federal government has declared that subsidy for energy has completely been removed from government fiscal plan in Nigeria.

This was contained in a statement by the Honorable Minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed, while presenting the the breakdown of 2021 budget in Abuja.

The Minister, While presenting the analysis for the N13.588 trillion Federal government budget with the Director General, Budget office, Mr Ben Akabueze, said same removal also applicable to power sector.

The Federal government had already increased the power tariff by 50% from the beginning of the year January 1.

With the new development, Nigerians should be expecting a harder measure on the surge on both the power tariff and more on petroleum product prices in 2021.

Do we begin to experience such increase in a country like Nigeria where oil is been exported to other country of the World?

This is a question begging for an answer.

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Discos Records N1.735 Trillion Deficits In Tariffs

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The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Prof. James Momoh wednesday disclosed that 11 electricity distribution companies (Discos) have recorded N1.736 trillion deficit in tariffs.

Momoh made the disclosure during the investigative hearing into the privatisation of power assets held at the instance of the House of Representatives Ad-hoc Committee chaired by the Majority Leader, Hon. Ado Doguwa.

He explained that loan of N701 billion was advanced to Nigerian Bulk Electricity Trading Company (NBET) as payment assurance facility to ensure a settlement of 80 per cent and 90 per cent of Electricity Generation Companies (Gencos) and gas supplier invoices to cover obligations in 2017 and 2018.

This was in addition to additional loan of N600 billion given to NBET by Central Bank of Nigeria (CBN) as payment assurance facility covering 100 per cent of gencos’ invoices for the payment for year 2019 and part of 2020, adding that the release of the funds under this tranche is based on deliverables of the power sector recovery programme.

The NERC chairman also added a projected tariffs support worth N380 billion and additional N60 billion for first quarter (Q1) and Q2 of 2021 has been capped by the PSRP financing plan, while federal government is in the process of securing a World Bank loan of $750 million.

On the other hand, the statistics available showed that the 11 discos recorded N1.830 trillion market shortfall between 2015 and 2019.

The breakdown showed that: AEDC recorded N233.077 billion; Benin – N161.452 billion; Eko – N154.853 billion; Enugu – N174.209 billion; Ibadan – N226.408 billion; Ikeja – N203.666 billion; Jos – N115.907 billion; Kaduna – N177.759 billion; Kano – N145.259 billion; Port Harcourt – N165.960 billion and Yola – N71.825 billion, respectively.

Momoh explained that based on the outcome of the baseline study on the level of aggregate technical commercial and collection losses conducted, federal government approved loan worth N213 billion from CBN with a view to paying off the tariffs’ shortfall for all market participants during the interim rules and outstanding legacy gas debts.

On the other hand, out of the N210.626 billion allocation from NEMSF to the Discos as at March 2020, total sum of N189.191 billion has so far been disbursed leaving a balance of N21.435 billion payment.

He added that the federal government is bearing the burden of N20 per kilowatt deficit recorded from the electricity tariff, as against the N50 per kilowatt which every customer ought to pay.

Earlier, the leader of the adhoc Committee, Hon. Hon. Ado Doguwa chided Director General of Bureau of Public Enterprises (BPE) for failing to honour the invitation sent to him.

He directed the BPE Director General to appear before the Ad-hoc within 24 hours, in his own interest.

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