Business
Auditor general queries ministry’s N3.8bn spending from suspended RUGA fund
The Office of the Auditor-General of the Federation has queried the Federal Ministry of Agriculture for spending a total sum of N3.809bn on the suspended Rural Grazing Area scheme without a presidential approval or National Assembly appropriation.
The query is part of the eight audit queries issued against the ministry in the ‘Auditor-General for the Federation’s Annual Report on Non-Compliance/Internal Control Weaknesses Issues in Ministries, Departments and Agencies of the Federal Government of Nigeria for the Year Ended 31st December, 2019.’
The OAuGF had queried expenditures totaling N60,795,898,225.84 by the ministry.
The Acting Auditor-General of the Federation, Adolphus Aghughu, presented the report to the Clerk to the National Assembly, Ojo Amos, on September 15, 2021, while the Senate and House Committees on Public Accounts commenced investigation into the queries.
The Federal Government had introduced the RUGA scheme in May 2019 but was forced to suspend it in the July of the same year due to the wide criticisms that trailed it.
According to the OAuGF, the ministry, in violation of the presidential directive suspending the scheme, allegedly initiated and paid out N3.433bn without due process.
The query read in part, “Ninety-five (95) payment vouchers were raised and paid from RUGA Intervention Fund between 1st August, 2019, and13th September, 2019, totaling N3,433,984,692.66, and the above payments were initiated and paid without due process after the Presidential directive suspending the RUGA project.”
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The ministry also paid out an additional N375,785,893.75 to some individuals and corporate organisations from the RUGA Intervention Fund through 13 payment vouchers without approval, according to the Auditor-General.
According to the report, the payments include N202.7m and N160m paid for transportation and other expenses in support of victims of banditry in Zamfara State, and advance payment meant for sensitisation and advocacy visits to the Governor of the state, respectively.
The report quoted the ministry’s management to have said, “The action is regretted and is also being investigated.”
The office, however, blamed the two expenditures on weaknesses in the internal control system at the Federal Ministry of Agriculture and Rural Development.
The Auditor-General consequently recommended that the withdrawals from the RUGA Intervention Fund be refunded to the Federal Government’s coffers as they were in breach of the extant laws and the financial regulations of the country.
The report also indicted the ministry over extra-budgetary spending of about N48.425bn on contractual liabilities, adding that despite a budgetary release of N98,044,134,611, representing 99.07 per cent of its 2018 capital allocation, the ministry did not take necessary actions to pay eligible contractors, which led to an outstanding contract liability of N48.425bn.
The office also accused the ministry of misappropriating the sum of N7.737bn first quarter capital allocation while paying for the 2018 capital projects, which was fully funded and released.
The query read in part, “There were no acceptable justifications for utilising 2019 1st quarter capital release to pay for 2018projects.”
The Auditor-General, therefore, demanded that the Permanent Secretary of the ministry be asked to give valid reasons for paying for projects fully funded from 2019 releases.
The office also demanded that the money be recovered and returned to government coffers with evidence forwarded to the Public Accounts Committees of the National Assembly or be sanctioned in accordance with financial regulations.
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The audit report also accused the ministry of failure to deduct and remit over N89m stamp duty on contracts in violation of Federal Treasury Circular which makes it mandatory for all MDAs to deduct and remit one per cent stamp duty on contract agreement before payment is made to the beneficiary.
The report further alleged that the ministry paid Value Added Tax of N24,799,539.17 directly to contractors in violation to Paragraph 234 (ii) of the Financial Regulations (2009) which states that, ‘Any loss of government revenue through direct payment of VAT and WHT to contractor or failure to provide for VAT and WHT due and remitting same to the Federal Inland Revenue Service by any ministry/extra-ministerial department shall be recovered from the statutory allocation of the defaulting ministry/extra ministerial office and other arms of government.’
The Auditor-General further indicted the ministry for allegedly violating the Federal Government’s e-payment policy as contained in the government’s E-payment Circular Ref. No. TRY/A8/B8/2008 dated October 22, 2008.
The office said the ministry paid N700,179,314.37to persons other than the direct beneficiaries of such payments through eight payment vouchers, adding that the ministry’s response to the expenditure was that “direct payment could not be made to beneficiaries because they were yet to be enrolled on the GIFMIS Platform; however, efforts are ongoing to conclude the enrollment process.”
The report also accused the ministry of failure to deduct and remit Withholding Tax and Value Added Tax of N8,886,291.47 from two contractors to relevant tax authorities as required by extant regulations.
Punch
Business
MTN, Airtel to share network infrastructure in Nigeria
MTN, Airtel to share network infrastructure in Nigeria
Airtel Africa has partnered with MTN Group to expand digital inclusion by sharing network infrastructure in Uganda and Nigeria.
In a statement in Lagos on Wednesday, Airtel said the sharing agreements aim to improve network cost efficiencies, expand coverage, and provide enhanced mobile services to millions of customers.
A sharing agreement is a formal arrangement between two or more parties to share resources, assets, or services.
According to the telecommunications company, the partnership will benefit customers in remote and rural areas who do not yet fully enjoy the benefits of a modern connected life.
Airtel assured that both parties will ensure the agreement complied with local regulatory and statutory requirements.
Sunil Taldar, chief executive officer (CEO) of Airtel Africa, said telecommunications companies are driving digital financial inclusion by building common infrastructure within the regulatory framework.
Taldar noted that the collaborative approach not only advances digital transformation and financial inclusion but also reduces the duplication of expensive infrastructure.
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As a result, Taldar said operational efficiencies are boosted, ultimately benefiting customers.
He further said telecoms continue to compete fiercely in the market, differentiating themselves through their brand, services, and offerings.
“The initiative is part of a growing global trend toward network sharing. By collaborating, telecoms operators can explore innovative and pro-competitive solutions to improve service quality while managing costs more effectively,” Taldar said.
“The sharing of infrastructure has the potential to enable the delivery of world-class, reliable mobile services to more and more customers across Africa.”
Taldar added that following the conclusion of agreements in Uganda and Nigeria, MTN and Airtel Africa are also exploring various opportunities in other markets, including Congo-Brazzaville, Rwanda, and Zambia.
Ralph Mupita, MTN Group CEO, said there is a need to invest in coverage and capacity to ensure high-quality connectivity to meet customers’ increasing demands.
“As MTN, we are driven by the vision of delivering digital solutions that drive Africa’s progress,” Mupita said.
“We continue to see strong structural demand for digital and financial services across our markets.
“To meet this demand, we continue to invest in coverage and capacity to ensure high-quality connectivity for our customers.”
Mupita added that there are opportunities within regulatory frameworks for sharing resources to drive higher efficiencies and improve returns.
MTN, Airtel to share network infrastructure in Nigeria
Business
NNPCL in historic initial public offer, ready for capital market
NNPCL in historic initial public offer, ready for capital market
The Nigerian National Petroleum Company Limited (NNPCL) has announced that it is in the final stages of preparation for its much-anticipated listing on the capital market, in line with the provisions of the Petroleum Industry Act (PIA) 2021.
The company’s Chief Corporate Communications Officer, Olufemi Soneye, disclosed this in a statement on Thursday in Abuja.
According to the statement, the Chief Finance and Investor Relations Officer, Olugbenga Oluwaniyi, revealed the development during a consultative meeting with partners at the NNPC headquarters.
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He stated that NNPCL is currently engaging with potential investors through an exercise called the “NNPC Ltd. IPO Beauty Parade,” which aligns with capital market regulations ahead of its Initial Public Offer (IPO).
“According to the CFIO, the aim of the IPO Beauty Parade is to access potential partners and determine in what ways they could be of support to the company,” the statement explained.
The statement further highlighted that NNPCL is seeking partnerships in three key areas: Investor Relations, IPO Readiness Advisors, and Investment Banking Partners. Companies with the most competitive offers will be selected for each category.
An IPO is a public offering in which a company’s shares are sold to institutional investors. Under the PIA, NNPCL is required to list its shares on the capital market in compliance with the Companies and Allied Matters Act (CAMA) 1990.
NNPCL in historic initial public offer, ready for capital market
Business
Naira rises to N1,560/$ in parallel market
Naira rises to N1,560/$ in parallel market
The Naira yesterday appreciated to N1, 560 per dollar in the parallel market from N1,570 per dollar on Wednesday. But the Naira depreciated to N1,540 per dollar in the Nigerian Foreign Exchange Market (NFEM).
Data published by the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira rose to N1,540 per dollar from N1,539 per dollar on Wednesday, indicating N1 depreciation for the naira.
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