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State House, Budget Office, 306 Others Spent N149bn Illegally – Auditor-General

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  • State House, Budget Office, 306 Others Spent N149bn Illegally – Auditor-General

The Auditor-General for the Federation, Mr Anthony Ayine, has queried 308 Ministries, Department and Agencies of government over extra-budgetary spending of N149.5bn in 2016.

This is contained in the 2016 annual report of the Auditor-General for the Federation, which was obtained by our correspondent on Sunday in Abuja.

The 2016 audit report is the latest to be prepared by the OAGF for all the MDAs.

The report was submitted to the National Assembly in June through a letter to the Clerk of the National Assembly, with reference C/AR.2016/CONF/VOL.1/01.

The report signed by Ayine, stated that the N149.5bn extra-budgetary expenditure by the 308 MDAs was a symptom of poor budgeting and accounting.

Some of the indicted MDAs are the National Centre for Women Development, with N3.82bn; National Emergency Management Agency, N10.48bn; Police Service Commission, N283.3m; and Tertiary Education Trust Fund, N1.12bn.

Also, National Primary Health Care Development Agency had extra-budgetary expenditure of N18.17bn; State House Operations-Vice President, N78.9m; Ministry of Petroleum Resources, N182.7m; Federal Civil Service Commission, N20.8m; Budget Office of the Federation, N96.5m; and Department of Petroleum Resources, N5.2bn, among others.

The report read in part, “Our examination of the consolidated statement of financial performance and the accompanying Note 13 revealed that 308 MDAs incurred extra-budgetary overhead expenditure of N149,509,623,789.40 in 2016 as their actual overhead expenditure overshot their appropriated budget for overhead costs.

“We, however, note that the total overhead expenditures of N670,827,528,970.26 shown on the statement of financial performance is far lower than the total appropriation for overheads for 2016 at N1,014,145,686,504.48.

“The extra-budgetary expenditure of N149.509,623,789.40 by some MDAs on overheads is a symptom of poor budgeting and accounting.”

Apart from the extra-budgetary spending, the report stated that an examination by the office also revealed that the sum of N12.08bn was transferred in cash to outstation offices and was not made available for the purpose of audit.

The AGF in the report lamented that despite audit queries raised by the office asking for clarifications from the agencies, many of them never responded.

Ayine said, “The MDAs and their accounting officers are reverting to the situation in the past where they did not promptly respond to audit observations.

“I am concerned about this development, which is a major setback to our accountability process. Where accounting officers fail to respond to audit queries, the implication is that they have no explanation to offer.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

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micro-finance-bank

CIT Microfinance Bank Disburses Over N16bn Loans

CIT Microfinance Bank Limited says it has disbursed about N16bn loans since it commenced operations as part of its contributions to the financial sector and empowerment of businesses.

The Managing Director of the microfinance bank, Mr Kingsley Eremionkhale, disclosed this during the company’s 10th anniversary in Lagos recently.

He reiterated that the bank was committed to supporting the growth of small and medium-scale enterprises in the country.

“Since inception, we have disbursed loans worth about N16bn. Our operation is not just about profit-making, but we have impacted many lives, empowered many businesses, and done a lot in terms of our core mandate as a microfinance bank.”

While appreciating its customers who had been loyal to it for years, he said it was concerned about their business success.

The managing director said, “We are part of our customers’ businesses. We provide services beyond lending and savings products and we also give financial advisory services.”

He appreciated the customers who had stayed with the financial institution for many years.

The managing director noted that the MfB is a state-licensed bank operating in Lagos, and a subsidiary of Capitalfield Investment Group.

He also attributed the success of the MfB to the board of directors which it said had been supportive, the management team and its workforce in the past 10 years.

While saying that the bank could lay claims to exponential growth, he said the public should expect more from it.

He also said that it was driving its operations through its digital offerings and our e-channels, to improve its services to our customers.

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Finance

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

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FMDQ

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

FMDQ Securities Exchange Limited has announced the approval of the quotation of the Valency Agro Nigeria Limited N5.12bn Series 1 Commercial Paper under its N20bn CP Programme on its platform.

The Exchange said in fostering the development of the Nigerian debt capital markets, it had continued to avail its credible and efficient platform as well as tailor its listings and quotations services to suit the needs of issuers and registration members through innovative and uninterrupted service delivery.

It said in a statement on Thursday that the Valency Agro Nigeria CP debut issue came at a time when the Nigerian economy was bedeviled with soaring food prices, amidst compounding challenges of insecurity.

It said the agricultural sector and its attendant transformation agenda had never been more important in driving increased and sustainable production of agricultural products as well as the derived foreign earnings through exports.

The Exchange said the proceeds from the issue of the CP would be applied by Valency Agro towards meeting the mid-term working capital requirements of the various agricultural produce under its portfolio such as cashew, sesame, cocoa and in value addition prior to export.

The Executive Director, Valency Agro Nigeria Limited, Mr Sumit Jain, was quoted as saying, “We are thankful to our investors towards showing their faith in our agenda to grow the agriculture-focused business with a clear aim to maximise value addition and create employment opportunities in Nigeria.

“We would also like to commend the efforts made by FBNQuest Merchant Bank Limited’s team to build the reach and FMDQ for their unconditional support for the industry”.

The Head, Capital Markets, FBNQuest Merchant Bank, Mr Oluseun Olatidoye, said, “FBNQuest Merchant Bank Limited is delighted with the successful debut of the N5.12bn Series 1 CP issued by Valency Agro Nigeria Limited. This reiterates our effort to enable underserved sectors access the debt markets, optimise their capital structure and further deepen the domestic capital markets.

“We are proud of the instrumental role FBNQuest Merchant Bank played in this transaction and appreciate the trust the management of Valency Agro placed in us to assist them. Our clients remain our priority, and we strongly believe their success is our success.”

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