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FAAC: Why FG, govs must open accounts for 774 LGAs, says Ozekhome

Published

1 month ago

August 9, 2024

Senior Advocate of Nigeria, Mike Ozekhome

FAAC: Why FG, govs must open accounts for 774 LGAs, says Ozekhome

Senior Advocate of Nigeria, Mike Ozekhome, has advised governors, the federal government, and local government council chairmen to open bank accounts for Nigeria’s 774 local government areas.

He expressed his views in a statement shared on Thursday, explaining that opening accounts would comply with the Supreme Court’s judgment, which ordered the funds due to the LGAs to be paid directly to them from the Federation Account.

The apex court judgment signaled a major departure from what was obtained over the years, where there was a joint account between the LGA and state governments but controlled by the latter.

Supreme Court had delivered its verdict following the federal government’s suit, which aimed to prevent the governors of 36 states from spending or tampering with the 20.6% allocation from the federation account to local government areas, among other reliefs targeting local government autonomy.

The apex court ruled that the allocations to joint state and local government accounts were merely procedural practices adopted in the past. It emphasized that it was not the intention of the 1999 Constitution for governors to retain funds due to the LGAs.

The apex court declared that the amount allocated to and credited to Local Government Councils in the Federation Account could be paid directly by the Federation to democratically elected Local Government Councils, among other rulings.

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Reacting to the development, Ozekhome stated that compliance with the said judgment is not impossible.

He added that the refusal by state governors to remit to the LGCs was the ugly mischief the apex court judgment sought to cure.

He explained that the content, terms, and directives contained in the judgment are very straightforward and unambiguous.

He said that since the judgment mandates the direct payment of FAAC allocations to the LGCs, the FG, states, and LGCs must obey and enforce it by opening bank accounts for the LGCs for the onward disbursement of their monthly dues.

“The answer is equally simple. The FG, states, and LGCs should now meet (and I am told they have been meeting) at FAAC and decide on modalities and procedures for opening accounts for LGCs so that their allocation under section 162 of the 1999 Constitution is paid directly to them and not to the joint state LG account that is oftentimes waylaid by state governors and fleeced without the helpless LGCs being able to raise a finger, he said.”

“The apex court had declared emphatically that, ‘by virtue of section 162(3) and (5) of the Constitution of Nigeria, 1999, the amount standing to the credit of LGCs in the Federation Account shall be distributed to them and be paid directly to them’; that a state, either by itself or governor or other agencies, has no power to keep, control, manage, or disburse in any manner, allocations from the Federation Account to LGCs.”

He stated that compliance with the judgment is in the interest of justice and would bring true fiscal federalism to Nigeria.

FAAC: Why FG, govs must open accounts for 774 LGAs, says Ozekhome

News

School teachers begin indefinite strike in Abuja

Published

9 hours ago

September 18, 2024

Trends Admin

School teachers begin indefinite strike in Abuja

Teachers in government-owned schools across the Federal Capital Territory (FCT) have started an indefinite strike. This action follows the expiration of a 14-day ultimatum issued by the Nigeria Union of Teachers (NUT), FCT Chapter, to the six area councils in the territory.

On Wednesday, pupils who arrived at school were sent home by their teachers upon reaching the school gates, leaving them disappointed.

Comrade Ameh Baba, the NUT Chairman in Kubwa, confirmed the strike, explaining that it was initiated to push for the payment of 60 percent of the minimum wage arrears owed by the area councils.

He also criticized the councils for failing to implement the payment of 40 percent peculiar allowances and the 25 percent and 35 percent salary increments for teachers.

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Comrade Ameh stressed the importance of primary education as the foundation of human development and urged the government to treat the matter seriously.

The union warned that if the government does not respond within seven days, they will escalate the strike by picketing the area council secretariats and organizing protests, with secondary school teachers joining in solidarity. He also noted that the strike would impact Junior Secondary School 1 students, as their results are due for release.

School teachers begin indefinite strike in Abuja

News

Students can reapply for loans, we’ve resolved BVN verification glitch – NELFUND

Published

10 hours ago

September 18, 2024

Trends Admin

Managing Director of NELFUND, Akintunde Sawyerr

Students can reapply for loans, we’ve resolved BVN verification glitch – NELFUND

The Nigerian Education Loan Fund (NELFUND) has announced the resolution of a technical issue that disrupted the BVN (Bank Verification Number) verification process for students applying for loans.

The issue, which began over the weekend and persisted through the public holiday, caused delays for many applicants.

In a statement posted on NELFUND’s official X (formerly Twitter) account on Wednesday, the organization confirmed that the issue had been fully resolved by Tuesday morning. NELFUND advised all affected students to log back into the portal, complete their BVN verification, and proceed with their loan applications.

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“Dear Students,

“We have observed that many of you experienced issues with BVN verification while applying for the student loan over the last weekend, including the public holiday.

“We are pleased to inform you that the issue has been addressed and fully resolved as of yesterday morning.

“We kindly advise all affected students to log back into the portal, complete the BVN verification process, and proceed with your loan application,” the statement read in part.

NELFUND also expressed gratitude to students for their patience during the disruption and reassured them that the application process can now continue smoothly without further issues.

Students can reapply for loans, we’ve resolved BVN verification glitch – NELFUND

News

Obasanjo reveals how Abdulsalami almost awarded $280m telecom deal for $3m to friends

Published

10 hours ago

September 18, 2024

Trends Admin

Former President Olusegun Obasanjo

Obasanjo reveals how Abdulsalami almost awarded $280m telecom deal for $3m to friends

Former President, Olusegun Obasanjo, has recounted how the former military Head of State, Gen. Abdulsalami Abubakar (retd), almost shortchanged Nigeria in a lucrative telecommunications deal.

Obasanjo revealed that Abdulsalami almost robbed Nigeria of a $280 million deal during nation’s transition to mobile telecommunications.

Obasanjo said when Nigeria was about to make the switch from landline telephones to mobile phones, some major telecommunication companies approached the country and promised to provide mobile lines for the citizenry, but Abubakar wanted to award the deal to his friends for $3 million.

The former President, however, said he suggested that the contract be made public for investors to bid and the highest bidder was awarded the contract, leading to the $280 million sale.

He made the revelation at the launch of a book titled ‘The Catalyst: Nigerian ICT Evolution through a Journalist’s lens,’ authored by an immediate past Editor of The PUNCH Newspapers, Mr Dayo Oketola, in Lagos.

He also disclosed that he was able to get Etisalat to pay $450 million to get the licence to operate in Nigeria.

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Speaking at the event, Obasanjo said: “The story of telecommunications, particularly mobile telecommunication, is a very interesting one. Before mobile telecommunication, we had spent a lot of money, we had all sorts of companies invited from America, France and even from Britain, but we did not get more than 500,000 lines. People had to queue at the telephone kiosk to call their loved ones abroad. And then, of course, the mobile telephone age came in.

“When it came in, my predecessor in office was trying to give it away, I think, to their friend for $3 million. Then we said, what we would do was to auction it. The three that came in first, I think, paid $280 million for the line. $280 million for something about to be given away for $3 million. That was the first thing we did. Not only that, we achieved competition.

“The three of them were competing. And, of course, the one that had the upper hand in terms of spread, I think, was MTN, followed by Glo. And then, there was Econet. They are now Airtel. And then, of course, later on, we had the fourth one, Etisalat. When Etisalat came, I told them the last one we did was $280 million. We told Etisalat to pay $450 million. They did.

“When they paid $450 million, the ball went in the post and then we were playing. That was how we got money to do what we did at the time we did it. That opportunity can still be made available. The money to develop Nigeria is out there, but that money will not come in unless we create a conducive atmosphere for that money to come in.

“What we did or what Nigeria has done in the good days when things were going well, are still there and can still be done today only if we put ourselves and we are honest to ourselves. We have to show character and attitude.”