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Senate President Saraki Pocketed Billions Of Naira From Paris Loan Refund

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  • Senate President Saraki Pocketed Billions Of Naira From Paris Loan Refund

In one of the largest financial scandals in recent years, Nigeria’s 36 state governors and Senate President Bukola Saraki pocketed large slices of funds approved by the Federal Government to reimburse states for the excessive deductions charged to them on account of the Paris Club and other international loans.

SaharaReporters learned that the Governors’ Forum received a hefty sum of the funds. Our team of investigators discovered that some of the governors got as much as N400 million, while Mr. Saraki carted away N2.5 billion out of the first batch of payments made to the states.

Our investigation showed that the Nigerian Governors’ Forum decided to use phony consultants, who then illegally deducted five per cent of the funds paid to the states. Our team found that the Central Bank of Nigeria (CBN) paid the consultants without informing the Accountant-General of the Federation. Once paid, the consultants forwarded a part of their payment to the individual accounts of the governors, with some governors individually receiving as much as N400 million. Former officials of the Federal Ministry of Finance registered and floated two of the companies, GSCL Limited and Biztrust Limited, that masqueraded as consultants.

One of the sources on the investigation disclosed that Mr. Saraki was paid N2.5 billion through a finance consultancy run by one Mr. Okey Mbonu, a former managing director of Society Generale Bank, a family bank the Sarakis robbed into bankruptcy, the bank later morphed into Heritage Bank. Documents exclusively obtained by SaharaReporters’ investigative team showed that the Nigerian Governors’ Forum received a total of N11,550billion from the sum of N231billion that the Federal Government directed to be paid to states last December.

Last week, agents of the Economic and Financial Crimes Commission (EFCC) investigating the illegal payments and subsequent transfer to governors’ personal accounts arrested Ashishana Okauru, Director-General of the Nigerian Governors’ Forum. An EFCC source told our team that, during interrogation, Mr. Okauru admitted that money was funneled through the Nigerian Governors’ Forum to individual governors. He, however, refused to write a statement.

Two EFCC operatives said Mr. Okauru, a former Director of the Nigerian Finance Intelligence Unit (NFIU), an arm of the EFCC, was treated with great leniency and released. The sources also disclosed that Mr. Okauru’s former colleagues at the EFCC helped to keep news of his arrest secret.

The misappropriated funds arose after an accounting reconciliation indicating that the 36 states were overcharged for payments to the Paris Club. Late last year, all the state governments asked the Federal Government to repay what they were overcharged as external debt service payments between 1995 and 2002. The said funds were paid as first line charge deductions from states’ share of federal allocations. The debt service deductions were in respect of loans taken from the Paris Club, London Club as well as other multilateral loans obtained by the Federal Government and the states.

By the time Nigeria reached a final agreement for debt relief with the Paris Club in October 2005, some states had been overcharged. This led to a request by state governments for a refund of the amounts owed by the Federal Government. Based on the requests, President Muhammadu Buhari directed the Debt Management Office (DMO) to raise a team to scrutinize claims by state governments and reconcile them with available records.

For instance, Abia State submitted a claim of $95,437,810.59, Adamawa filed a claim of $92,255,322.54, while Akwa Ibom sought a refund of $255,713, 552.80. Anambra State asked for a refund of $92,374,232.23, Bauchi, $104,092,295.20, Bayelsa, $299,432,862.33, and Benue, $99,542,766.38. After the scrutiny of claims by the DMO, President Muhammadu Buhari approved payment of the sums of $23,859,452.65 (N7.2 billion) to Abia State, $23,063,830.64 (N7.034 billion) to Adamawa State, $63.928,388.20 (N19.4 billion) to Akwa Ibom, $23,093,558.06 (N7.043 billion) to Anambra State and $26,023,073.80 (N7.9 billion) to Bauchi State. Mr. Buhari also approved $24,885,691.60 (N7.6 billion) for Benue State and $74,858,215.58 (N22.8 billion) for Bayelsa.

The Federal Government and the states reached an agreement under which the Federal Government would immediately pay 25 percent of the amounts claimed by each state government. It was agreed that the balance due to each state would be revisited when the country’s financial conditions improve. However, SaharaReporters learnt that President Muhammad Buhari has approved the next tranche of payments to be delivered to the states in February.

In a statement, the Federal Ministry of Finance disclosed that President Buhari had urged the states to invest a minimum of 50 percent of the amount disbursed to them in people’s welfare, especially for the payment of salaries and pensions.

In order “to ensure compliance with the directive that a minimum of 50 percent of any amount disbursed is dedicated to this, funds will be credited to an auditable account from which payments to individual creditors will be made. Where possible, such payments will be made to Bank Verification Number-linked accounts and verified,” said the Federal Ministry of Finance. The total amount approved by the President, for payment in batches, was N522.74 billion.

Last December, Abia State was paid N5.093 billion, Adamawa N4.9 billion, Akwa Ibom N13.6 billion, Anambra N4.9 billion, Bauchi N5.5 billion, Bayelsa N15.9 billion, and Benue N5.3 billion. However, owing to the illegal deductions engineered by the respective governors, Abia State got N4.8 billion, Adamawa N4.6 billion, Akwa Ibom N12.9 billion, Anambra N4.6 billion, Bauchi N5.2 billion, Bayelsa N15.1 billion and Benue N5.3 billion.

Our investigation revealed that all the other states also had amounts paid to them chiseled off by the shenanigans of the Nigerian Governors’ Forum and its members through consultants. A source familiar with the process told SaharaReporters that the scam perpetrated by the governors was by far the largest he had ever seen.

This month, N99,003,694, 086.75 is slated to be paid to all the states. Documents obtained by our investigative team revealed that the members of the Nigerian Governors’ Forum were expecting to scoop a total sum of N4,950,184,704.34 from the payments.

A state like Zamfara, which expects to be paid N2,045,885,255.78, will receive N1,943,590,992.99, with the sum of N102,294,262 to be funneled to the coffers of the Nigerian Governors’ Forum and a part of it destined for the personal account of the state governor. A similar situation is bound to play out in Yobe State, due to be paid N1,974,027, 914.66. After the Nigerian Governors’ Forum has done its tricks, the state would be left with N1,875,326,518. Taraba, which is entitled to N2,031, 388,337.99, will receive N1,929, 818, 921.09 after illegal deductions made by consultants arranged by the Nigerian Governors’ Forum.

SaharaReporters

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Enugu Government Gives Reasons For Imposing Tax on Dead Bodies 

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Company Income Tax (CIT) - Investors King

The Enugu State Government has given reasons for its decision to impose a tax on corpses in mortuaries across the state.

The government said its decision was not driven by the need to generate revenue.

Executive Chairman, Enugu State Internal Revenue Service (ESIRS), Mr Emmanuel Nnamani, made this clarification while reacting to the Mortuary Tax circular addressed to all morticians in the state.

Nnamani said imposing the tax was inline with the state Mortuary Tax Law which had existed for years, adding that it was not new to the state.

He further clarified that the mortuary tax was N40 daily only as against N40,000.

Nnamani stated that it is an indirect tax paid by mortuary owners, not deceased family and it is just N40, not N40,000.

He added that since its introduction, nobody has been denied burying their dead ones, adding that if the corpse stays in the mortuary for 100 days, the mortuary is expected to pay the state a sum of N4,000.

“The tax is not meant to generate revenue but to discourage people from taking their dead ones to the mortuary all the time,” he stressed.

According to the circular, ESIRS, in line with the provisions of Section 34 of the Birth, Deaths and Burials Law Cap 15 Revised Laws of Enugu State 2004, approved the implementation of the Mortuary tax.

The law partly reads, “The sum of N40.00 only is to be paid by owners of a corpse once it was not buried within twenty-four hours. The amount continues to count daily.

“Kindly ensure that owners of corpses make the payments before collection of the corpses for burial and then remit the same to the ESIRS in any commercial bank under the mortuary tax in Enugu State IGR Account.”

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Atiku Blasts Tinubu, Says President’s Haphazard Approach to Fuel Subsidy Caused Current Economic Crisis

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Former Vice President Atiku Abubakar has slammed President Bola Tinubu’s handling of the fuel subsidy crisis, referring to him as “TPain.”

Atiku attributed the current economic challenges facing Nigeria to what he described as the “haphazard and disingenuous approach” of the Tinubu administration to fuel subsidy management.

In his statement posted on X on Thursday, Atiku bemoaned the escalating inflation rate, stating that it is severely impacting the lives of Nigerians.

He lamented that despite the growing hardships, Tinubu appears unfazed by the plight of the citizens.

According to him, the haphazard and disingenuous approach of the current administration to fuel subsidy management has been the reason the nation is witnessing current economic crisis.

He said as things stand, there will be no let up in the escalating inflation rate, which is drowning the material well-being of Nigerian populace.

The former VP said it is even more worrying that Tinubu, whom he referred as “T-pain”, is undisturbed by the hardship in the country.

The nickname ‘TPain’ for Tinubu emerged as a play on the first letter of his name and the name of American rapper and producer T-Pain, sparked by frustrations over the rising cost of living under his administration.

The earliest mention of the term on social media dates back to April 2024.

However, it gained significant traction around September 16, after a user on X used it while discussing the President’s visit to Maiduguri to console flood victims.

The term has gained traction on platforms like X and Instagram.

 

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LG Autonomy: Senators Disagree as Governors Allegedly Mandate Chairmen to Move Allocations Into State Accounts

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Senate President Akpabio

Some members of the Nigerian Senate have expressed displeasure over alleged moves by state governors to thwart the feasibility for the implementation of the Financial Autonomy granted to the 774 Local Government Councils across the country by the Supreme Court in August this year.

There was hot debate amid confusion on Wednesday in the Senate soon after the sixth item which has to do with Petitions was handled when Senator Tony Nwoye from Labour Party in Anambra North came up with a Point of Order which was sustained by the President of the Senate, Senator Godswill Akpabio.

Nwoye who came through orders 41 and 51 of the Senate Standing Rules, moved a motion on alleged moves by some state governments to circumvent the implementation of the judgement on LG Autonomy through counter laws from their respective State House of Assembly.

As he was still speaking to his colleagues at the hallowed Chamber, Nwoye ran into confusion over the matter, just as he told the Senate that nine other Senators had co-sponsored the motion.

He specifically alleged that some State Governors are already using their House of Assembly to enact laws that would mandate respective local government councils in their states to remit monies into State/Local Government Joint Accounts ruled against by the Supreme Court.

Immediately he rounded off his presentation containing six prayers for enforcement of the judgement and seconded by Senator Osita Izunaso, APC Imo West Senator Adamu Aliero, PDP Kebbi Central raised a constitutional point of order for stoppage of debate on the motion.

Adamu Aliero who cited section 287 of the 1999 Constitution that makes Supreme Court Judgement enforceable across the country, urged the Senate not to overflog the issue.

Aliero said the Supreme court judgement is enforceable across the country, adding that there is no need for the parliament to be debating anything that has to do with it.

Agreeing with Senator Aliero, Akpabio raised another constitutional issue as he called on the attention of Senators to section 162 sub-section 6 of the 1999 constitution.

The section according to Akpabio, created the State/Local Government Joint Account, which has to be amended in paving the way for full implementation of the Supreme Court Judgement.

Akpabio said what the Senate needs to do is to carry out required amendments of certain provisions of the constitution as far as local governments autonomy is concerned so as to ensure that local councils have their separate accounts.

But before taking a final decision on the motion, the sponsor, Senator Nwoye hurriedly raised order 42 of the Senate Standing rules for personal explanation on the motion the same time, Senator Abdulrahman Summaila Kawu, (NNPP Kano South) raised a similar point of order.

The simultaneous points of Order brought confusion into the session with many senators rushing to the Senate President for a personal consultation, which eventually, made the Senate go to an emergency closed-door session at exactly 12: 46. pm.

Recall that the Supreme Court had in early August this year, barred the 36 governors of the federation from further retaining or utilizing funds that are meant for the 774 Local Government Areas, LGAs, in the country.

The apex court ruled that it was illegal and unconstitutional for governors to continue to receive and seize funds allocated to LGAs in their states.

The Supreme Court had maintained that the “dubious practice” which has gone on for over two decades, was a clear violation of Section 162 of the 1999 Constitution, as amended.

In its lead judgement that was delivered by Justice Emmanuel Agim, the apex court held that no House of Assembly of any state has the power to make laws that could, in any manner, interfere with monies meant for the LGAs.

Stressing that the law mandated that LGAs must be governed by democratically elected officials, the Supreme Court ordered that forthwith, funds meant for the LGAs must be directly paid to them from the federation account.

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