Connect with us

Economy

Govs Earn Over N600,000, Not N500,000 – Investigation

Published

on

Kayode Fayemi
  • Govs Earn Over N600,000, Not N500,000 – Investigation

Contrary to the claim by Governor Kayode Fayemi that governors in Nigeria earn N500, 000 per month, the official monetised salary of a governor in the country is actually N648,580.62, findings from an investigation have shown.

Fayemi had said that professors in Nigerian universities earned as much as he earned, and that, in some cases, they earned more than him on a monthly basis.

He said that as a governor, he earned N500,000 monthly salary, arguing that a professor sometimes earned more than that.

The governor berated Nigerian academic for allegedly not taking advantage of certain opportunities which, he said, he was privy to.

However, a document, Remuneration Package of Political, Public and Judicial Office Holders, obtained from the Revenue Mobilisation, Allocation and Fiscal Commission by our correspondent in Abuja on Thursday, showed that there were other allowances which the governor was entitled to.

While a few of the allowances are paid periodically, there are others that are not monetised which the state provides fully, according to the preference of the governor.

The governor’s monthly salary is made up of three items – basic salary, hardship allowance and constituency allowance.

According to RMAFC’s document, a governor is entitled to a monthly basic salary of N185,306.75. He is entitled to a monthly hardship allowance of N92,654.37 and monthly consistency allowance of N648,580.62.

These add up to a monthly salary of N648, 580.62 or an annual sum of N7, 782,967.50.

Other allowances of the governor that are not part of the monthly emoluments are 10 per cent leave allowance which amounts to N222,370.50 per annum.

Should a governor so desire, he is entitled to 400 per cent Motor Vehicle Loan which amounts to N8,894,820.

When a governor completes his tenure, he is entitled to 300 per cent severance allowance, which amounts to N6,671,115. This is apart from what is provided by each state as pension and gratuity.

However, the majority of the allowances that a governor is entitled to are not monetised. This means that the state makes full provision for such items – to the taste of the governor.

Such allowances include the following: Motor vehicle fuelling and maintenance, special assistant, personal assistant, domestic staff, entertainment, utilities, security, and newspapers/periodicals.

Other allowances that are fully provided by the state for the governor are accommodation, furniture, duty tour allowance, estacode and medical.

According to the document, the annualised salary and allowances of the President is N14,058,820 while that of the Vice-President is N12,126,290.

For a senator, the salary and allowances add up to N20, 669,280 per annum. Those of a member of the House of Representatives add up to N17, 271,347.75.

For a minister, the salary and allowances add up to N14,705,164, while those of presidential aides add up to N14, 085,843.75.

On the face value, therefore, it appears that even the aides appointed to serve both the President and the Vice-President earn higher than these two key officials of the state.

However, the reason is that while most of the allowances of lawmakers, senators and presidential aides are monetised, the allowances that are supposed to be earned by the President and the VP are provided by the state – without any limit, just like the governor.

Apart from the salary, the regular allowances that are monetised for the President are only hardship allowance, N1, 757,350.50 per annum; and consistency allowance, N8, 786,762:50 per annum.

For the Vice-President, the hardship allowance is N1, 515,786:25 per annum, while the consistency allowance is N7, 578,931:25 per annum.

The irregular allowances for the President are the severance allowance – 300 per cent of the annual salary or N10, 544,115 – and leave allowance – 10 per cent of the annual salary or N351, 470:50.

The irregular allowances of the vice-president are the severance allowance – 300 per cent of the annual salary or N9, 094,717:50 – and leave allowance – 10 per cent of the annual salary or N303, 157:25.

Other allowances that the President and the Vice-President are supposed to enjoy which are not provided in monetary terms include motor vehicle fuelling and maintenance, special assistant, and personal assistant.

Others are domestic staff, entertainment, utilities, security and newspapers/periodical allowances.

These irregular allowances include accommodation, furniture, duty tour, estacode, medical, and severance/gratuity.

Two other officials of the state whose most allowances are not monetised but provided for by the state are the President of the Senate and the Speaker of the House of Representatives.

In the states, governors and Speakers of the State Houses of Assembly enjoy similar privileges.

These items, which are supposed to constitute allowances for the President and the VP are to be fully provided for these key office holders by the state according to the Remuneration Package of Political, Public and Judicial Office Holders prepared by the Revenue Mobilisation Allocation and Fiscal Commission and passed into law in 2007 by the National Assembly.

The country’s annual budgets give an indication of how much the nation spends on the items required by the President.

Following the outcry of citizens for a downward review of the emoluments of political office holders as a result of dwindling oil earnings of the country, President Muhammadu Buhari had in 2015 directed RMAFC to review the emoluments.

The work of the agency which was concluded in 2016 came to nothing as the President could not act on the report which was submitted to his office.

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.

Economy

Dangote Fertiliser Plant to Commence Shipment of Urea in March 2021

Published

on

Dangote to Sells Petrol in Naira, Plans to Commence Urea Shipment in March 2021

The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, has said Dangote Fertiliser Plant will commence shipment of Urea in March 2021.

The CBN governor disclosed this during an inspection tour of the sites of Dangote Refinery, Petrochemicals Complex Fertiliser Plant and Subsea Gas Pipeline at Ibeju Lekki, Lagos on Saturday.

Emefiele further stated that Dangote Refinery would sell refined petroleum products in Naira when it starts production.

This he said would save the country from spending 41 percent of the nation’s foreign exchange on importation of petroleum products yearly.

Based on agreement and discussions with the Nigerian National Petroleum Corporation and the oil companies, the Dangote Refinery can buy its crude in naira, refine it, and produce it for Nigerians’ use in naira,” Mr Emefiele said.

That is the element where foreign exchange is saved for the country becomes very clear. We are also very optimistic that by refining this product here in Nigeria, all those costs associated with either demurrage from import, costs associated with freight will be totally eliminated.

Emefiele explained that this will make the price of Nigeria’s petroleum products affordable and cheaper in naira.

If we are lucky that what the refinery produces is more than we need locally you will see Nigerian businessmen buying small vessels to take them to our West African neighbours to sell to them in naira.

“This will increase our volume in naira and help to push it into the Economic Community of West African States as a currency,” Mr Emefiele said.

Continue Reading

Economy

UK Budget 2021: Will Sunak’s Budget Run Into Unintended Consequences?

Published

on

UK EConomy contracts

Rishi Sunak’s Budget will encourage higher earners to consider their “international financial options” and will drive businesses away from the UK, warns the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The warning from Nigel Green, chief executive and founder of deVere Group, comes as the Chancellor delivered his 2021 Budget in the House of Commons, his second since he took on the role.

Mr Green says: “The Chancellor has got an extraordinarily difficult hand to play as he tries to stem the economic damage caused by the pandemic, support jobs and businesses and, crucially, rebuild the public finances.

“Whilst Mr Sunak is being hailed a hero for the continued and unprecedented levels of support, it should also be remembered that he is – in a stealth move – dragging more people firmly into the tax net.

“He is raising taxes under the radar.

“Yes, there is no income tax rise. However, he is freezing personal tax thresholds, meaning as incomes rise and thresholds don’t, he is able to raise money by fiscal drag.”

Earlier this week, the deVere CEO noted: “Those most impacted by this stealth move will be looking at the financial planning options available to them, including international options, in order to grow and protect their wealth.”

Rishi Sunak also confirmed that corporation tax will increase to 25% from 2023, up from the current level of 19%.

Of this tax hike, Mr Green goes on to say: “Lower corporation tax helps job and wealth-creating business to survive and thrive. It also helps attract business to move and invest in the country.

“Instead of increasing taxes, Mr Sunak should have relentlessly focussed on growth and stimulus policies for businesses.  This would have been of greater help to firms, the economy, jobs and, ultimately, the Treasury’s coffers.”

He adds: “Again, this corporation tax hike is likely to serve as a prompt for businesses to consider their overseas financial options.”

The deVere CEO concludes: “The Chancellor had to perform a tough juggling act.  But stealthily dragging more people into the tax net and raising corporation tax might have negative, unintended consequences for the Treasury’s bottom line.”

Continue Reading

Economy

Electricity Consumers Get 611,231 Meters Under MAP Scheme

Published

on

power project

Electricity Consumers Get 611,231 Meters Under MAP Scheme

A total of 611,231 meters have been deployed as at January 31, 2021 under the Meter Asset Provider initiative since its full operation despite the COVID-19 pandemic and other extraneous factors, the Nigerian Electricity Regulatory Commission has said.

NERC disclosed this in a consultation paper on the review of the MAP Regulations.

The proposed review of the MAP scheme is coming nearly four months after the Federal Government launched a new initiative called National Mass Metering Programme aimed at distributing six million meters to consumers free of charge.

“The existence of a huge metering gap and the need to ensure successful implementation of the MYTO 2020 Service-Based Tariff resulted in the approval of the NMMP, a policy of the Federal Government anchored on the provision of long-term low interest financing to the Discos,” NERC said.

The commission had in March 2018 approved the MAP Regulations with the aim of fast-tracking the closure of the metering gap in the sector through the engagement of third-party investors (called meter asset providers) for the financing, procurement, supply, installation and maintenance of meters.

It set a target of providing meters to all customers within three years, and directed the Discos and the approved MAPs to commence the rollout of meters not later than May 1, 2019.

But in February 2020, NERC said several constraints, including changes in fiscal policy and the limited availability of long-term funding, had led to limited success in meter rollout.

NERC, in the consultation paper, highlighted three proposed options for metering implementation going forward.

The first option is to allow the implementation of both the NMMP and MAP metering frameworks to run concurrently; the second is to continue with the current MAP framework with meters procured under the NMMP supplied only through MAPs (by being off-takers from the local manufacturers/assemblers).

The third option is to wind down the MAP framework and allow the Discos to procure meters directly from local manufacturers/assemblers (or as procured by the World Bank), and enter into new contracts for the installation and maintenance of such meters.

“Customers who choose not to wait to receive meters based on the deployment schedule of the NMMP shall continue to have the option of making upfront payments for meters which will be installed within a maximum period of 10 working days,” NERC said.

The regulator said such customers would be refunded by the Discos through energy credits, adding that there would be no option for meter acquisition through the payment of a monthly meter service charge.

“Where meters have already been deployed under the meter service charge option, Discos shall make one-off repayment to affected customers and associated MAPs. Such meters shall be recognised in the rate base of the Discos,” it added.

NERC urged stakeholders to provide comments, objections, and representations on the proposed amendments within 21 days of the publication of the consultation paper.

Continue Reading

Trending