NEC Okays Sharing Of $150m NLNG Dividend Among Tiers Of Govt | Independent Newspapers Limited
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NEC Okays Sharing Of $150m NLNG Dividend Among Tiers Of Govt

Posted: Nov 20, 2015 at 7:05 am   /   by   /   comments (0)

The National Economic Council (NEC) has approved the sharing of the sum of $150 million among the different tiers of government out of the $400 million dividends paid by the Nigerian Liquefied Natural Gas (NLNG).

The council reached the decision at its meeting presided over by Vice President Yemi Osinbajo, at the Presidential Villa, Abuja, on Thursday.

Briefing State House corespondents after the meeting, Osun State governor, Mr Rauf Aregbesola, in company with his Enugu State counterpart, Ifeanyi Uguanyi and deputy governor of Nasarawa State, Silas Agara, revealed that the council had also directed that the sum of $250 million from the dividend be invested in the Nigeria Sovereign Investment Authority (NSIA).

He said the decision followed a status report of the NSIA presented to the council by the Managing Director of the Sovereign Wealth Fund Authority, Uche Orji.

“After due deliberations on the report, the council agreed that $250 million from the $400 million NLNG dividend be invested in the Nigerian Sovereign Investment Authority to increase its capital,” he said.

Aregbesola said the council directed the Minister of Finance, Kemi Adeosun, 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 was dissolved.

He stated that the Accountant-General of the Federation reported that the balance of the Excess Crude Account (ECA) stood at $2.257 billion and that not much changed from the last report.

On the report of government agencies generating revenues in foreign currency, but remitting naira equivalent into the Federation Account, the council mandated the Ministry of Finance to investigate and report back.

Aregbesola further said the Central Bank of Nigeria (CBN) had been mandated to embark on sensitisation and public enlightenment on the forex policy and relevant laws and regulations, so as to guide traders and some people who encounter challenges regarding the movement of foreign currency across the nation’s borders.

He added: “We understood that some traders, particularly in the East, encounter challenges at the airports when they intend to go about their businesses.”

The governor revealed that the Director-General of Pension Commission (PENCOM), Chinelo Anohu-Amazu, briefed the council on the contributory pension scheme implementation effort and status of implementation by the states.

According to him, highlight of the briefing was 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.

He said the briefing also highlighted the need for the states to provide legal frameworks, such as enacting state pension laws by those who have not done so, establishment of states pension agencies, consistent remittance of both employees and employers contributions and also full compliance of all provisions of the pension scheme.

On Thursday, NEC witnessed a workshop on Treasury Single Account (TSA) for state governors, with the International Monetary Fund (IMF) Senior Resident Representative, presenting a paper on the TSA.

Presentations were made on the listed sub-topics: “Implementation of TSA in states: Lessons and experience; “Cash management and TSA reform: an overview of international practice; and budgeting reforms.”

NEC also deliberated on the need to reconstitute the members of the governing board of the Niger Delta Power Holding Company, following which the vice president called for the nomination of new board members based on the six geopolitical zones.