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Senate Rejects FIRS N143bn Budget …Halts Works On Sovereign Wealth Act
The Senate, yesterday, rejected the report by the Committee on Finance in which the N143.7billion budget of the Federal Inland Revenue Service was approved.
The lawmakers, while debating the recommendation of the committee during the day’s plenary, criticised the report as lacking details.
While some senators who spoke on the report said it was fraught with ambiguities, others cited duplication of projects in the proposed budget.
The President of the Senate, Bukola Saraki, who presided over the plenary, asked the committee to work on the grey areas in its report and re-present it in one week.
On the proposed 2016 budget of the FIRS, the report said, “The Federal Inland Revenue Service projected to collect tax revenues to the tune of N4.082trillion in 2016.
“This comprises of N484billion oil and N3.597trillion non-oil revenues. The projected four per cent Cost of Collection on non-oil revenue is N143,904,640,000.
“The total projected available fund for the 2016 budget is N146,165,108,293, comprising of four per cent Cost of Collection and N2,260,468,293 or 20 per cent of 2015 operating surplus.”
The Chairman, Senate Committee on Finance, Senator John Enoh, while presenting the report to the chamber, recalled that the Senate on July 21, 2016, considered the request of President Muhammadu Buhari on the 2016 budget of the FIRS and referred same to the committee for further legislative action.
On the performance of the 2015 budget of the FIRS, the report said National Assembly’s joint Committees on Finance approved a revenue projection of N436trillion, comprising of N1.74trillion oil revenue and N262trillion non-oil revenue.
The joint committee also projected the four per cent Cost of Collection of non-oil revenue by the FIRS to be N104,723,880,000.
The committee stated the summary of the proposed 2016 expenditure of the service as follows: personnel, N64,491,130,526; overhead, N46,363,000,000; and capital, N32,868,300,000, bringing the total expenditure to N143,722,430,526.
The committee, according to the report, observed that the projected non-oil revenue collection had increased from the 2015 collection, thereby increasing the four per cent Cost of Collection to the service to N143,904,640,000bn from N104,723,880,000 in 2015.
The committee further observed that, “The total personnel costs are for salaries, wages, allowances, performance bonuses and social contributions. The 8,000 (members of) staff are proposed to be on the payroll during the 2016 financial year, which accounts for the increase of 19 per cent above actual staff strength of 6,748.
The projection presumes a recruitment of new staff in 2016.
It further observed that, “The overhead cost is very vital in driving the achievement of FIRS’ core objectives of tax revenue generation.
“The provisions in 2016 budget give more emphasis on availability of office materials, training, consulting and professional services and publicity.”
The committee added that, “The capital cost estimates proposed includes ongoing projects, which are to be completed during the 2016 financial year, as well as new projects to be carried out.
“These projects include new corporate headquarters and other prototype offices, construction of new offices nationwide and ICT projects.”
The committee, therefore, recommended that a total expenditure of N143,722,430,526 be approved for the FIRS in 2016, which the Senate rejected.
Meanwhile, the shadow of the past that prevented Nigeria from investing in the Sovereign Wealth Fund during the good days of Nigerian crude sale has again resurfaced as the Senate, yesterday, suspended the consideration of the Nigeria Sovereign Investment Authority (Establishment) Act 2011 (Amendment) Bill, following protests by some senators who insisted that further legislative action on the bill would be prejudicial since state governors are already contesting in court, the legality of deducting funds from the federation account by the Federal Government through the agency.
Chairman of the Senate Committee on Finance, Senator John Eno, at plenary presented the report of the bill seeking to amend the Nigerian Sovereign Investment Authority (NSIA), for debate but just before commencement of debate, the Senate Minority Leader, Godswill Akpabio, described any legislation on the bill as illegal, as he pointed out that there is need to await the judgment of the court on the matter.
Akpabio admitted, however, that it is proper for Nigeria to save for the rainy day, but insisted that there is need to strengthen the relevant laws relating to the agency to forestall possible abuse in the management of the agency.
According both him, the major reason why the governors had opposed the policy during the time of former President Goodluck Jonathan was because they wanted the major stakeholders to be involved in the regulation and administration of the agency.
According to him, since the funds will have a commencing seed of one billion dollars, to be deducted from the federation account, which constitutionally belong jointly to the local, states and federal governments, it is proper to have them well represented in the agency and its board.
Deputy Senate President, Senator Ike Ekweremadu, in his contribution noted that there is need to save for the scarce moments but emphasised that it is unconstitutional to consider and pass the report on the bill without first adjusting the Constitution to accommodate the controversial sections of the bill.
He, therefore, advice that the Senate to suspend the consideration of the bill until the Constitution Review Committee amends the Constitution in line with those sections that are unconstitutional in it.
President of the Senate, Senator Saraki, trying to save the bill and to ensure its passage, however advocated that only sections (10) of the bill be stepped down since it is the only section that is not in line with the Constitution.
He said the Senate Committee on Constitution Review, headed by the Deputy Senate President, can address the constitutional issues raised by some lawmakers while reviewing the constitution, before the bill will be passed eventually into law.
According to Saraki, since there is a unanimous agreement among the lawmakers that Nigeria should save for the future, the Senate should go ahead to consider the report.
However, mid into the consideration of the report, the controversial section 10 came up again, seeking to allocate $1billion from the federation account to the NSIA, and became a road block for the debate as it would only be prejudicial to debate on an issue in court already.
At that point, the debate was suspended and the bill withdrawn.
It would be recalled that the Nigeria Sovereign Investment Authority (Establishment) Act 2011 (Amendment) Bill, seeking to save ( Sovereign Wealth Fund) for the rainy day during the hay days of oil price through cuts from the federation account (local , states and federal governments) but was vehemently opposed by state governors, especially governors of the opposition party.
Nneka Amaechi-Nnadi, Abuja
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Fubara Reads Riot Act To New SSG, CoS …Warns Against Unauthorized Meetings
Rivers State Governor, Sir Siminalayi Fubara, has charged the newly appointed Secretary to the State Government (SSG) and Chief of Staff (CoS) to carry out their duties with discipline, loyalty and a firm commitment to the success of the administration and the wellbeing of the people of Rivers State.
The governor warned that any involvement in unauthorised nocturnal meetings or any conduct capable of embarrassing the government will attract immediate dismissal.
Fubara gave the warning yesterday shortly after the newly appointed Secretary to the State Government (SSG), Dr Dagogo S.A. Wokoma and the new Chief of Staff (CoS), Barrister Sunny Ewule, were sworn in at the Executive Council Chambers of Government House, Port Harcourt.
As part of the ceremony, the Chief Registrar of the State High Court, David Ihua-Maduenyi administered the Oath of Allegiance and Oath of Office on the duo before the governor gave his charge.
Addressing the appointees, Fubara reminded them that their elevation to the new positions was a call to service and not a platform for political grandstanding or the pursuit of personal ambition.
He stressed that their foremost responsibility should be to themselves and to the people of Rivers State, stressing that their conduct must always reflect integrity, restraint and dedication to public good.
Speaking directly to Dr. Wokoma, whom he described as an accomplished academic and mathematician, the governor expressed confidence in his intellectual depth and capacity to deliver on the new assignment.
The office of the Secretary to the State Government, Fubara stressed, demands thoroughness, discipline and a deep sense of responsibility. He charged the SSG to represent the State with honour at all times.
“Your duty includes representing the state government. You need to represent us in a way and manner that will bring honour to us.
“What is important to this administration is to see that the good works that we started and the ones that we met, are concluded in a way that will bring progress and development to our dear state,” he stated.
Turning to the new Chief of Staff, the governor explained that he is expected to ensure smooth administrative coordination, managing official engagements effectively and safeguarding the image of the Government House.
He underscored the sensitive and personal nature of the role and emphasised that the position operates strictly under the authority of the governor.
Fubara stressed that the role does not permit independent political engagements or private strategy meetings without his knowledge and consent.
“Let me sound it here very clearly. Your duty is to make sure that you handle the administrative duties and image making roles perfectly well, liaising with whoever is coming for any official assignment here.
“If you involve yourself in nocturnal meetings and all those things, I will sack you. I’m very serious. What is important to me today is peace, progress and prosperity of this state. I’m not going to compromise anything for it,” he said.
The governor cautioned that involvement of the new appointees in any action capable of bringing the government or his office to disrepute would attract appropriate sanctions.
While congratulating the new appointees, Fubara expressed optimism that they would justify the confidence reposed in them.
He called on all public officials to work together in unity, observing that collective success is stronger and more enduring than individual achievement.
The governor who also addressed the Permanent Secretaries present at the ceremony, directed those of them who have reached retirement age to start preparing their handover notes without delay.
The notice, he said, was not intended to scare anybody but to prepare their minds towards the inevitability of exiting the service one day and to pave way for an orderly transition.
He warned against any attempt to engage in financial misconduct or last-minute irregularities, stressing that he was closely monitoring the system to ensure strict enforcement of accountability rules.
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Fubara Dissolves Rivers Executive Council
Rivers State Governor, Sir Siminialayi Fubara, has dissolved the State Executive Council.
The governor announced the cabinet dissolution yesterday in a statement titled ‘Government Special Announcement’, signed by his new Chief Press Secretary, Onwuka Nzeshi.
Governor Fubara directed all Commissioners and Special Advisers to hand over to the Permanent Secretaries or the most Senior officers in their Ministries with immediate effect.
He thanked the outgoing members of the State Executive Council for their service and wished them the best in their future endeavours.
The three-paragraph special announcement read, “His Excellency, Sir Siminalayi Fubara, GSSRS, Governor of Rivers State, has dissolved the State Executive Council.
“His Excellency, the Governor, has therefore directed all Commissioners and Special Advisers to hand over to the Permanent Secretaries or the most Senior officers in their Ministries with immediate effect.
“His Excellency further expresses his deepest appreciation to the outgoing members of the Executive Council wishing them the best in their future endeavours.”
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INEC Proposes N873.78bn For 2027 Elections, N171bn For 2026 Operations
The Independent National Electoral Commission (INEC) yesterday told the National Assembly that it requires N873.78bn to conduct the 2027 general elections, even as it seeks N171bn to fund its operations in the 2026 fiscal year.
INEC Chairman, Prof Joash Amupitan, made the disclosure while presenting the commission’s 2026 budget proposal and the projected cost for the 2027 general elections before the National Assembly Joint Committee on Electoral Matters in Abuja.
According to Amupitan, the N873.78bn election budget covers the full conduct of national polls in 2027.
An additional N171bn is needed to support INEC’s routine activities in 2026, including bye-elections and off-season elections, the commission stated.
The INEC boss said the proposed election budget does not include a fresh request from the National Youth Service Corps seeking increased allowances for corps members engaged as ad-hoc staff during elections.
He explained that, although the details of specific line items were not exhaustively presented, the almost N1tn election budget is structured across five major components.
“N379.75bn is for operational costs, N92.32bn for administrative costs, N209.21bn for technological costs, N154.91bn for election capital costs and N42.61bn for miscellaneous expenses,” Amupitan said.
The INEC chief noted that the budget was prepared “in line with Section 3(3) of the Electoral Act 2022, which mandates the Commission to prepare its election budget at least one year before the general election.”
On the 2026 fiscal year, Amupitan disclosed that the Ministry of Finance provided an envelope of N140bn, stressing, however, that “INEC is proposing a total expenditure of N171bn.”
The breakdown includes N109bn for personnel costs, N18.7bn for overheads, N42.63bn for election-related activities and N1.4bn for capital expenditure.
He argued that the envelope budgeting system is not suitable for the Commission’s operations, noting that INEC’s activities often require urgent and flexible funding.
Amupitan also identified the lack of a dedicated communications network as a major operational challenge, adding that if the commission develops its own network infrastructure, Nigerians would be in a better position to hold it accountable for any technical glitches.
Speaking at the session, Senator Adams Oshiomhole (APC, Edo North) said external agencies should not dictate the budgeting framework for INEC, given the unique and sensitive nature of its mandate.
He advocated that the envelope budgeting model should be set aside.
He urged the National Assembly to work with INEC’s financial proposal to avoid future instances of possible underfunding.
In the same vein, a member of the House of Representatives from Edo State, Billy Osawaru, called for INEC’s budget to be placed on first-line charge as provided in the Constitution, with funds released in full and on time to enable the Commission to plan early enough for the 2027 general election.
The Joint Committee approved a motion recommending the one-time release of the Commission’s annual budget.
The committee also said it would consider the NYSC’s request for about N32bn to increase allowances for corps members to N125,000 each when engaged for election duties.
The Chairman of the Senate Committee on INEC, Senator Simon Along, assured that the National Assembly would work closely with the Commission to ensure it receives the necessary support for the successful conduct of the 2027 general elections.
Similarly, the Chairman of the House Committee on Electoral Matters, Bayo Balogun, also pledged legislative support, warning INEC to be careful about promises it might be unable to keep.
He recalled that during the 2023 general election, INEC made strong assurances about uploading results to the INEC Result Viewing portal, creating the impression that results could be monitored in real time.
“iREV was not even in the Electoral Act; it was only in INEC regulations. So, be careful how you make promises,” Balogun warned.
The N873.78bn proposed by INEC for next year’s general election is a significant increase from the N313.4bn released to the Commission by the Federal Government for the conduct of the 2023 general election.
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