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Again, Rivers Ranks First In Fiscal Performance

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Again, Rivers State Government has retained its overall fiscal performance position for the third consecutive time.
It ranked first in 2020 and 2021 among the 36 states in Nigeria.
Kaduna and Cross River states made it to the top five, Yobe dropped to the bottom five, having fallen 13 places from 21st last year to the 34th position this year.
BudgIT, a civic-tech organisation leading the advocacy for fiscal transparency and accountability, rated Rivers ahead of others in the 2022 edition of its annual State of States report titled: “Sustainable Governance Reforms for a New Era”.
BudgIT’s Research and Policy Advisory Lead, IniobongUsen, said the report, which is BudgIT’s signature analysis, assessed and ranked the fiscal performance of all 36 states, from the most sustainable to the least sustainable.
Usen stated that for the 2022 edition, all 36 states were ranked using five metrics.
Index A examines states’ ability to meet Operating Expenses (Recurrent Expenditure) with only their Internally Generated Revenue; Index A1 looks at the percentage year-on-year growth of each state’s Internally Generated Revenue.
He said: “Index B reviews states’ ability to cover all operating expenses and loan repayment obligations with their Total Revenue (Internally Generated Revenue + Statutory Transfers + Aids and Grants) without resorting to borrowing.
“Index C estimates the debt sustainability of the states using four major indicators: Debt as a percentage of GDP; debt as a percentage of revenue; debt service as a percentage of revenue; and personnel cost as a percentage of revenue.
“Index D evaluates the degree to which each state is prioritising capital expenditure with respect to their operating expenses (recurrent expenditure).”
Commendably, BudgIT noted that cumulative spending on capital expenditure by the 36 states grew by 52.52percent from N1.77trillion in 2020 to N2.70trillion in 2021.
Eight states increased the capital expenditure year-on-year by more than 100per cent, however, just five states, Anambra, Ebonyi, Cross River, Kaduna, Rivers, prioritised capital expenditure over operation expenses, signalling the prioritisation of investments in infrastructure, job creation, and human capital development.
BudgIT narrated that the operating expenses of Yobe and Bayelsa (the least ranked states on Index A) was more than seven times the revenues generated by both states Internally, reinforcing the heavy reliance on federal transfers and budget support to fund their budgets.
On Index A1, save for three states which ranked the least, Anambra, Kogi and Kebbi; 33 states experienced an increase in their IGR from the previous year, with 13 states growing their IGR by more than 50per cent.
Jigawa, Delta, Ebonyi, AkwaIbom and Nasarawa ranked first to fifth respectively on Index C which assessed the debt sustainability of the 36 states.
Cross River, Ogun, Imo, Osun, Plateau were the bottom five states on Index C.
Lagos State, with a capital importation of $31.78billion between 2019 and 2021, received 99.19per cent of the cumulative capital importation for 36 states of the federation.
Interestingly, 11 states received no capital importation between 2019 and 2021.
On debt sustainability, Usen said the cumulative debt stock of the 36 states grew by 8.68per cent from N5.86trillion in 2020 to N6.37trillion in 2021.
A more disaggregated view of the subnational debt shows that 11 states reduced their total debt liability, with Delta State having the most impressive decline of N33.84trillion.
BudgIT noted that Kogi State, with a foreign debt year-on-year growth of N85.65trillion, ranked first among the 17 states that grew foreign debt in 2021.
The four states with the highest dollar-denominated debt ($250 million and above), Lagos, Kaduna, Cross River and Edo, are the most susceptible to exchange rate volatility.
“The cumulative expenditure of the 36 states increased rose by 27per cent (from N5.23trillion in 2020 to N6.64trillion) in 2021. Notwithstanding, while 31 states increased their total expenditure from the previous year, fivestates reduced their expenditure—with Zamfara having the highest decline of 15.59per cent”, the report said.
BudgIT said the cumulative personnel cost of the 36 states grew by 5.38per cent from N1.46trillion in 2020 to N1.54trillion in 2021.
It said nine states reduced their overhead cost from the previous year, signalling a reduction in the cost of governance.
Conversely, 11 states increased their overhead cost from the previous year by more than 40per cent, with AkwaIbom having the highest growth.
Usen added: “On fiscal transparency, the 36 states of the federation currently publish in a timely manner their proposed budgets, approved budgets, budget implementation reports, audited financial statements for both the states and the local governments.
“In the same vein, many states have enacted an Audit Law that grants operational and financial autonomy to the Offices of Auditors-General of the State and Local Governments, thereby empowering their supreme audit institutions to effectively hold governments accountable.

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NAFDAC Busts Fake Alcohol Factory In Lagos

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The National Agency for Food and Drug Administration and Control (NAFDAC) has dismantled a makeshift factory in the Oke Arin market, Lagos Island, where counterfeit alcoholic beverages were being illegally produced.
According to a statement via its X, yesterday, the agency, acting on a complaint, conducted a raid that led to the arrest of three men and the seizure of counterfeit drinks, empty bottles, and packaging materials.
According to NAFDAC, the seized products, which included fake versions of popular alcoholic brands, were valued at over ¦ 180 million.
The main suspect, Mr. Tochukwu Henry, confessed to refilling bottles labelled as Rémy Martin with ST-Rémy contents.
He also admitted to employing two other individuals to assist in the operation.
The statement said, “NAFDAC has raided a makeshift factory in Oke Arin market, Lagos Island, following a complaint about the illegal production of alcoholic beverages. Three men were apprehended and various counterfeit alcoholic drinks, empty bottles, and packaging materials were seized.
“The products, valued at over ¦ 180 million, included fake versions of popular brands. The main suspect, Mr. Tochukwu Henry, confessed to refilling bottles labelled as Rémy Martin with ST-Rémy contents and employing two others to assist in the illicit operation.
“All suspects are currently in custody for further investigation. NAFDAC calls on the public to remain vigilant, especially during the festive season, and to report suspicious activities and products to the nearest NAFDAC office.”

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Reps Give FG 72 Hours To Unfreeze NSIPA’s Accounts

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The House of Representatives has called on the Federal Government to direct the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to within 72 hours, unfreeze the accounts of the National Social Investment Agency (NSIPA), given its role in addressing hunger and poverty.
The position of the Green Chamber was a sequel to the adoption of a motion at yesterday’s plenary sponsored by the Deputy Speaker, Benjamin Kalu, and 20 other lawmakers.
Allegations of corruption and shady deals compelled the President Bola Tinubu-led government to freeze the accounts of the agency, to give room for a total overhauling of its programmes.
While calling for support for the motion yesterday, Kalu emphasised that NSIPA oversees critical social intervention programmes such as Grant for Vulnerable Groups, N-Power, the Government Enterprise and Empowerment Programme, Conditional Cash Transfers and the National Home-Grown School Feeding Programme, among others.
He also noted that the Renewed Hope Agenda of the Tinubu-led government emphasises the mandate of the NSIPA to cushion the effect of economic shocks on the poor and the vulnerable.
He said, “The House is disturbed that despite the programmes of NSIPA being vital for poverty alleviation, youth empowerment, and economic inclusivity in Nigeria; the agency’s functionality has been hindered due to administrative bottlenecks, insufficient funding and frozen accounts.
“The House is worried that the effort of the government and the laudable programmes of NSIPA were truncated by alleged financial mismanagement by handlers of the programmes leading to the suspension of programmes and freezing of the agency’s account and subsequent investigation by anti-corruption and security agencies.
“The House is concerned that the smooth operations of the programmes and the fulfilment of the mandate of NSIPA are hindered due to the suspension of the accounts of the agency and other administrative bottlenecks, which has remained in force even more than three months after the President reconstituted the new management of NSIPA.”
Kalu who represents Bende Federal Constituency, Abia State, further said the frozen accounts of the agency contradict the President’s mandate on poverty alleviation by hindering and halting social welfare programs, including conditional cash transfers, small business grants, and school feeding initiatives.
This, according to him undermines “Economic empowerment initiatives, delays in achieving Sustainable Development Goals and cause erosion of public confidence and administrative paralysis in fighting poverty, among other things.”
Kalu noted that following the suspension of accounts of the NSIPA, “The N-Power programme has been so negatively affected that 395,731 beneficiaries are owed outstanding stipends to the tune of N81.32bn; a fund already captured under the 2023 and 2024 amended Appropriation Acts, which will lapse by the year ending December 31, 2024.”
Following the adoption of the motion, the House urged the President to mandate the minister of finance and the Coordinating Minister of the Economy to “ensure that all frozen accounts of the National Social Investment Programmes Agency are unfrozen within 72 hours to enable the smooth recommencement of all the programmes.”
The minister was also tasked to ensure the release of funds to NSIPA for the payment of outstanding stipends owed to 395,731 N-Power beneficiaries nationwide without further delay.
It further mandated the Minister of Humanitarian Affairs and Poverty Reduction, Dr Yusuf Sununu, to ensure that all the administrative bottlenecks hindering the smooth operations of all programmes of NSIPA are immediately removed.

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Rivers Dep Gov Bags Award

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Rivers State Deputy Governor, Prof. Ngozi Nma Odu, has expressed gratitude to the Nigerian Institute of Food Science and Technology for upgrading her to the status of a Fellow by the President and Governing Council of the Institute.
Prof Odu expressed this when a delegation of Fellows and other members of the Institute visited her at the Government House in Port Harcourt, yesterday to perform her Investiture as a Fellow of the Institute of Food Science and Technology.
Prof. Odu said that what the Institute has done for her is exceptional, adding that she feels so humbled by their kind gesture and proud of the Institute which she described as a trailblazer.
I want to thank our Emeritus Prof. Simeon Achinewhu for keeping the flag flying and I am pleased to be a part of this family”. Prof. Odu further stressed.
The Deputy Governor who called for continuous prayers for the success of the Governor Fubara-led Administration, noted that prayers were their greatest defense in times of trouble.
“This Administration needs God to sustain us, we need God to direct our steps, we need God to navigate especially when you have challenges, God has done it thus far and I believe the good Lord shall lead us until we finish when he wants us to finish.” The Deputy Governor further stressed.
Also speaking the leader of the delegation, Emeritus Prof. Simeon Achinewhu, said they were in the Government House to decorate the Deputy Governor as a Fellow of the Nigerian Institute of Food Science and Technology, in line with the directive of the national body of the association to formally present the Deputy Governor with her award and certificate of membership, following are indelible contributions to the growth of the association.
Earlier, the Chairman South -East Chapter, of the Nigerian Institute of Food Science and Technology, Dr. Bariwere Samuel, while assuring the State Government of its readiness to partner with the State on its food safety programs, said it is willing to deploy its expertise and resources to compliment the State Government’s efforts in ensuring the availability of safe and nutritious food for its citizens.

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