Governors elected under the platform of the Peoples Democratic Party, PDP, Wednesday raised alarm that over 18 federal revenue agencies no longer remit money to the federation account.
The Governors who made the claims in a communique issued after their meeting at Umuobiakwa, Abia State, threatened a show-down with the Federal Government over unremitted revenues by the affected federal agencies especially the Nigerian National Petroleum Corporation, NNPC.
They claimed that high level corruption is going on under the watch of the APC-led Federal Government.
The PDP Governors lamented the soaring cost of living in the country, and blamed the APC-led FG for the economic woes of the country.
They urged Nigerians to reject APC in the 2023 elections, alleging that Nigeria is passing through hell under its watch.
The Governors also berated the APC-led Federal Government over heavy borrowings, accusing it of mortgaging Nigeria’s future.
The governors were led by the Chairman, PDP Governors’ Forum, Gov. Aminu Tambuwal of Sokoto State.
Twelve out of 13 PDP Governors were present at the meeting while Taraba State was represented by the Deputy Governor, Hon Haruna Manu.
Below is the full text of communique.
COMMUNIQUE ISSUED BY THE PDP GOVERNORS’ FORUM AT THE END OF THEIR MEETING AT ABA, ABIA STATE OF NIGERIA
The PDP Governors’ Forum comprising all elected Governors of the Peoples Democratic Party held its regular meeting on Wednesday, 23rd March, 2022, at Aba, Abia State.
The meeting reviewed the excruciating hardship and suffering being meted out to Nigerians by a failed APC led Federal Government; the near collapse of the APC as a viable political party, the readiness of the PDP to take over and offer qualitative leadership options to rescue the nation and issued the following Communique:
1. We lament the terrible pain and hardship facing Nigerians in virtually all aspects of life. The meeting noted that life was much better in 2015 under the PDP than today under the APC as exemplified in the following Comparative Indicators obtained mainly from the National Bureau of Statistics:
a. Diesel which is critical for running of SMEs was N131.47 in 2015, it now costs above N700
b. Fuel: Official and Black-Market was N87/155 in 2015, it now costs N167/350.
c. Aviation Fuel/Air Ticket Rate on Domestic Flights was N110 per Litre/N18,000 in 2015, it now hovers around N700 per Litre/N70,000, where available. Indeed, the scarcity of fuel which has resulted in loss of several man hours is a disgrace to Nigeria.
d. The collapse of the National Grid (126 times in 7 years – (June 2015 to March 2022) and its consequences for non-availability of power is most unfortunate.
e. Kerosene (NHK) used by the ordinary Nigerian for cooking and power was N180 in 2015, it now sells at ₦450.
f. Liquefied Petroleum Gas (LPG) – 12.5kg Cylinder sold for N2,400 in 2015, is now sold at between N8,750 and N10, 000.
g. Prices of basic food stuffs are now three times higher than what they used to be in 2015. Staple foods such as rice, beans, cassava flakes are now slipping out of the hands of average Nigerians. Indeed, a Bag of Rice sold for N8500 in 2015 is now N39,000.
h. Electricity was N14.23 per kilowatt in 2015, it is now N38.530, and not even available.
i. Unemployment rate was 11.4% in 2015, it is now over 33%, one the highest in the world.
j. The poverty rate in 2015 was 11.3% but now about 42.8%.
k. Accumulated Inflation in 2015 was about 4%, it is now 15.50%; Inflation Rate was 9.01% in 2015 and now 15.7%.
l. Perhaps the Exchange Rate has been one of the most disastrous. N150 to a dollar was the parallel market (patronised by most businessmen and Nigerians) rate in 2015, it is now about N580 to $1 in the parrel market and still rising.
m. Debt and Debt Servicing:
Domestic Debt of N8.4T and External Debt of USD 7.3b was incurred between 1999-2015.
While Domestic Debt of N7.63T (June 2015-Dec 2020) and USD28.57b as at Dec 2020 was incurred. External debt of USD21.27b was incurred between June 2015 and 2021.
n. National Debt to GDP Ratio was 23.41% (2016) it is now 36.88% (2022).
o. The Corruption Index has risen from 136 in 2015 to 150 now.
p. Nigeria’s Misery Index, an indicator used in determining how economically well off the citizens of a country are, is usually calculated by adding the seasonally adjusted unemployment rate to the annual inflation rate, has moved from 14.75 percent in 2015 to 50.48 (2021).
q. The major threat to the agricultural sector and food security in Nigeria is insecurity. In the northeast of Nigeria, it is estimated that no fewer than 70,000 hectares of arable farmland have been abandoned in the affected States and Local Government areas. The trend is the same all over the country. This further contributes to food inflation. The APC led Federal Government must take steps to cooperate with States to bring security down to the grassroots.
2. The Forum is surprised that in the face of these statistics of complete failure in all ramifications and areas, the APC still wants to be on the ballot in 2023.
This shows how uncaring and insensitive the APC is. IT HAS BECOME A MENACE TO NIGERIA.
3. The Forum urges Nigerians to reject the APC, a party run undemocratically by a Committee contrary to the Constitution (S.228) with Mr. President regularly issuing instructions and dictates. It is impossible for a party so disorganized to offer good governance to the people of Nigeria.
4. The meeting expressed concern and alarm over various reports and claims of incidents of stealing of crude oil ranging from 80% to 95% of production made by industry practitioners and called on the Federal Government to set up an appropriate mechanism to reverse this trend and bring perpetrators to account.
5. The PDP Governors once again decried the inability of the NNPC to make its statutory contributions to the Federation Account, inspite of Oil selling at above $110. It is patently unconstitutional for NNPC to determine at its whim and discretion when and what to pay to the Federation Account, as it is a mere trustee of the funds for the three tiers of Government: Federal, States and Local Governments. We once again, call for investigations and audit of the quantity of consumption of fuel ascribed to Nigerians and for deployment of technology at the filling stations to determine in a transparent manner the volume of consumption.
The Governors would resist any further attempt by NNPC to ascribe unsubstantiated subsidy claims to other tiers of government.
6. Furthermore, S.162 (1) of the 1999 Constitution of the Federal Republic of Nigeria as amended stipulates that “The Federation shall maintain a special account to be called “the Federation Account” into which shall be
paid all revenues collected by the Government of the Federation…”
and S.162 (10) states that “For the purpose of subsection (1) of this section, “revenue” means any income or return accruing to or derived by the Government of the Federation from any source and includes –
(a) any receipt, however described, arising from the operation of any law;
(b) any return, however described, arising from or in respect of any property held by the Government of the Federation;
(c) any return by way of interest on loans and dividends in respect of shares or interest held by the Government of the Federation in any company or statutory body”
a. As of today, 18 (Eighteen) Federation Revenue Agencies are not paying/remitting any revenue to the FAAC Account. These include (i) Central Bank of Nigeria (ii) Nigeria Maritime Administration and Safety Agency (NIMASA) (iii) Nigeria Liquefied National Gas (NLNG) (iv) Nigeria Communication Commission (NCC) (v) Economic and Financial Crimes Commission (EFCC) (vi) NPA (vii) Security and Exchange Commission etc
(b) FIRS and DPR takes cost of collection of 4% (Four percent) of Revenue collected while Customs collects 7%. In March 2022 for instance, FIRS took N15.4Billion as cost of collection and Customs took N8.4b. If these are annualised, FIRS and Customs collects about N1.84Billion and Customs N100B per annum. Obviously, some states of the Federation’s capital budget does not come close to these.
(c) Nigeria Federation has 49% shareholding in NLNG. According to the Minister of Finance during the 2020 budget performance brief at the National Assembly stated that the federation received dividend of N144billion (One Hundred and Forty Four Billion) from NLNG. These figure to the best of our knowledge was never paid into the Federation Account.
(d)) NNPC deducts N8.33Billion monthly for the rehabilitation of the Refineries in Nigeria. Till date no refinery is working.
(e) On priority projects of the Nation’s oil industry, NNPC deducted N788.78Billion for various investments between 2018-2021 without recourse to FAAC.
(f) NNPC in 2021 alone claimed to have paid over One Trillion Naira as petroleum subsidy. Indeed, the month of March 2022, N220Billion was deducted as oil subsidy with a promise that N328Billion will be deducted in April 2022. This is unacceptable.
(g) NNPC and FIRS as well as other remitting Agencies continue to apply an exchange rate of N389/$1 as against the Import and Export window of N416/$1. The extent of this leakage can be better felt, if this rate is compared to the current N570/$1.
(h) From available records about N7.6T is withheld between 2012 and 2021, by NNPC from the Federation Account. All these are said to be payments for oil subsidy.
(i) Conclusively, we believe that all these leakages in NNPC have been made possible because the President is also the Minister of Petroleum. The urgent separation of these two portfolios have become necessary
7. The Forum noted the approval by the PDP NEC of the Time Table and Timelines for Congresses and Convention of the Party and urged all party members and party leadership to remain focused and united to win power in 2023, to tackle the myriads of problems facing the country.
8. The PDP Governors congratulated the host, His Excellency, Governor Okezie Ikpeazu, the PDP Governors’ Forum Vice Chairman, for his generosity and hospitality in the hosting of the meeting.
9. In attendance are:
• Gov. Aminu Waziri Tambuwal – Sokoto State – Chairman
• Gov. Okezie Ikpeazu – Abia State – Vice Chairman
• Gov. Ahmadu Umaru Fintiri -Adamawa State
• Gov. Udom Emmanuel – Akwa Ibom State
• Gov. Bala Mohammed -Bauchi State
• Gov. Sen. Douye Diri – Bayelsa State
• Gov. Samuel Ortom -Benue State
• Gov. Dr. Ifeanyi Okowa – Delta State
• Gov. Godwin Obaseki – Edo State
• Gov. Ifeanyi Ugwuanyi – Enugu State
• Gov. Engr. Oluseyi Abiodun Makinde – Oyo State
• Gov. Nyesom Wike, CON – Rivers State
• Hon Haruna Manu, Deputy Governor – Taraba State