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Local Government Autonomy not Practicable – Gbajabiamila

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House of Rep Speaker-Femi Gbajabiamila
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…Indicts State Governors for killing it

By Martin Paul, Abuja


The Local Government Autonomy which has dangling for years in the National Assembly (NASS), yesterday suffered another setback as the House of Representatives claimed that state governors denied its realisation.

Speaker of the House, Femi Gbajabiamila said that the realization of the autonomy of local government councils was dependant on the people.

He stated at a two-day capacity training for the newly elected councillors and local government council chairmen from Aniocha/Oshimili Federal Constituency of Delta state.



The training was organized by the House of Representatives minority leader, Hon.
Ndudi Elumelu.

Gbajabiamila said that the autonomy of the third tier of the government rested on the people at the grassroots, adding that the National Assembly had successfully amended the constitution for the purpose, but was turned down by states.

“The Minority Leader of the House is here with his councillors of his local government, from his constituency to train them on leadership. “We talk about training all the time but who are we training and what are we training them for? This is leadership training for councilors and I thank Elumelu for thinking about this.

“This institute has been in the making for a long time and I believe at the end of the exercise, they would have received a lot of education on what leadership is all about. “Some people are born leaders, some learn to acquire leadership but either way, whether you’re born a leader or acquire it, you have to go do that training exercise to be able to horn your experiences and qualities you have in order to maximize your skills.

“What better place to start than with the local government councillors. As you all know, that is the bedrock of our society.

“It’s not for us as legislators to do that. I’m sure you’re surprised but it’s actually for the people to address, the reason being, we have a constitutional amendment.

“We will throw it to the people and they will make their decision. We did it the last time but we went back to the states and we couldn’t get the 2/3rd.

“There’s a process. We followed due process. We amended it last time but two-third of the States didn’t agree with us. So it’s the people that will decide whether they want autonomy or not. “We will do what we need to do as the constitution provides”, Gbajabiamila said.

Gbajabiamila also underscored the importance of giving recourse to the principle of separation of powers, asking the newly elected councillors and Chairmen to be bold in discharging their constitutional mandates even at the risk of offending some people.

“I’m just going to have a little interaction with you because a lot of things are misunderstood when it comes to local government level of government.

“Many people believe and say that there are three tiers of government. Yes, there are three tiers of government. But do we understand what a tier means?

“A tier means that there are different layers. And those layers are independent and they check each other. Many people believe there is a separation of powers.

“Let me ask quickly without trying to embarrass any of the Chairmen or any of the Councillors. What do you understand your role to be in government, constitutionally? “Does anybody have an answer to that? I don’t think so, but we all have a general understanding.

“But many of us are not bold enough when we are actually told the specifics of what our roles are because we are beholding to whoever and I said this at the risk of respecting the powers of State Governors, the federal government, and in also balancing it on understanding the powers within these responsibilities of the local government.

“So, there’s something called ultra vires in law and that concept cuts across everything including governance. I as a president cannot interfere in your work, constitutionally given to you by the Constitution at the local government.

 “Neither can you do what the state Governor is supposed to do. “So, when we talk about separation of powers, most time people understand that concept to mean executive, judiciary and the legislature but that’s a very narrow interpretation of separation of powers. “That is the horizontal separation of powers.

“There are two types of separation of powers – the vertical and the horizontal. The vertical separation of powers is what concerns you. “And that is the federal, the state and the local government. It is what makes any sane society work.

“We all try to model ourselves and look at America, look at Germany, look at several other countries not realizing that or understanding that they have clearly defined the roles of everybody and the people who defined this role did it for a purpose.

“So when you go outside the rules that are defined and everybody jumps into everybody’s role will you get what is chaos. But how do you now realize and go back to what we talked about, leadership? You have to be bold even sometimes at the risk of offending some people.

“For some people, they argue that the local government of governance at the local government level is probably the most important in any democracy because you are the ones that are in touch with the people that matter – people at the Grassroots”, he said.

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Federation Account Garners N7trn Revenue in Six Months – RMAFC

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RMFARC
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By Tony Obiechina, Abuja

Revenue Mobilization Allocation and Fiscal Commission (RMAFC) yesterday disclosed that a total sum of N7.31 trillion accrued to the Federation Account between July and Dec. 2023.This was captured in the monthly report to the Federation Account Allocation Committee (FAAC) by the Central Bank of Nigeria (CBN) under the caption “CBN Federation Account Component Statement”.

This amount is higher than the sum of N5.
244 trillion realised in the first half of year 2023, according to a statement signed by the RMAFC Chairman, Mr. Mohammed Bello Shehu and made available to the media in Abuja.The chairman disclosed that out of the total gross revenue inflows into the Federation Account, the sum of N1,692 trillion was transferred to the Exchange Gain Differential Account, thus leaving a balance of N5.
475 billion for distribution.He added that from the amount stated above, the sum of N3.26 trillion was deducted as approved statutory deductions by the OAGF, leaving a net balance of N2.2 trillion for distribution to the three tiers of government within the period under review.The chairman explained that out of the N3.267 trillion statutory deduction indicated above, N2.251 trillion was transferred to the Non-Oil Excess Account as savings, thus leaving a net statutory deduction of N1.016 trillion with further augmentations for sharing among the three tiers of government received from some “reserve accounts.”The statement added that within the period under review, the net sum of N4 trillion was shared with the three tiers of government, an amount higher than the total sum of N3.06 trillion.In terms of percentages, the chairman stressed that “the statutory deduction in the second half of the year constituted 44.12 percent of the total gross inflow into the Federation Account in the six-month period, which was higher than the first half deductions of 42.31 percent (inclusive of transfer to the Non-Oil Excess Account).”On remittances by Revenue Generating Agencies (RGAs), the RMAFC chairman disclosed that out of the total gross revenue inflows into the Federation Account, the Nigerian National Petroleum Company Limited (NNPCL) remitted N874 64 billion in the second half of the year as against the zero-remittance made in the first half of the year.Similarly, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted the sum of N1.56 trillion while the Federal Inland Revenue Service (FIRS) remitted N3.65 trillion

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PDP NEC Meeting Ends with Damagum as Acting Chairman

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By Johnson Eyiangho, Abuja

Peoples Democratic Party (PDP) 98th National Executive Committee (NEC) meeting yesterday ended without a word on the much talked-about replacement of the party’s Acting National Chairman, Amb. Iliya Damagum, an indication that he will continue to function in that position.

In an interview with newsmen after the meeting, the PDP spokesman, Hon.
Debo Ologunagba said for now, the party is focusing on issues of reconciliation and its stability, adding that the issue of the Acting National Chairmanship had been “deferred to the next NEC meeting, which is tentatively scheduled for August 15, 2024″.
Also speaking, the Governor of Bauchi State and Chairman of the PDP Governors’ Forum, Bala Mohammed said the party is united as there was no dissension and rancour.
In his words, “It was planned that the party would have an implosion. PDP is more than that. We have gone beyond all that. This party is united, guided by experience and constitutionality.”There were a lot of permutations and mischievous thinking outside there. But we looked at all the issues and we worked along our guidelines and constitution.“There is no problem or dissension and problem among members,” Mohammed said.The well attended NEC meeting was held amid tight security as police and personnel of the Department of State Services (DSS) condoned off roads leading to the PDP Secretariat, Abuja and diverted vehicular traffic.It will be recalled that the PDP National Working Committee (NWC) had passed a vote of confidence on Damagum during its meeting on Tuesday.A communique issued at the end of the three hours meeting commended all the organs of the party for their collective resilience, steadfastness and commitment towards the unity, stability and sustenance the party despite daunting challenges.The communique commended the efforts of the NWC in its effort towards rebranding the party and urged all party members to continue to work together for the success of the PDP for the benefit of Nigerians and sustenance of democracy in our country.

The document which was read by the PDP National Publicity Secretary, Ologunagba, however, expressed concern over what it described as the ill-implemented policies of the APC administration, leading to worsening insecurity, harrowing economic hardship, soaring unemployment rate, high cost of food and other necessities of life with pervading misery and despondency across the country.”NEC expresses serious apprehension over the spate of acts of terrorism and violence including the escalated cases of mindless killings, mass abduction of innocent Nigerians and marauding of communities in various parts of the country.”NEC condemns the insensitivity, nonchalance, incompetence and arrogance in failure of the APC administration which continues to conduct itself in a manner that shows that it has no iota of interest or commitment towards the wellbeing of Nigerians.”NEC also condemns the creeping totalitarianism and tendencies towards a One-Party State which is inimical to the peace, stability and corporate existence of our nation as well as the development of Democracy and good governance in the country,” it said.The communique demanded that President Bola Tinubu should urgently convene a special National Security Council meeting to proffer a holistic solution and measures to curb the disturbing insecurity with its attendant negative consequences on the nation.It also called on the president to “immediately rejig his Economic Team to bring in persons of proven integrity and competence without bias and vested interest to assist in repositioning the economy.”NEC further demands that the Federal Government should review all policies and programmes which are stifling the economy with suffocating effect on the lives of citizens; including the increase in price of fuel without cushioning measures, hike in electricity tariff, increased taxation and implementation of adverse fiscal policies,” the communique added.Present at the meeting were FCT Minister Nyesom Wike, former Vice President Atiku Abubakar and many other past and presently elected members of the PDP.

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CBN Reduces Banks’ Lending Rate to 50 Percent

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By Tony Obiechina, Abuja

Central Bank of Nigeria (CBN) yesterday announced a review of the loan-to-deposit ratio (LDR) for banks from 65 percent to 50 percent to align with the current monetary tightening.

LDR is used to assess a bank’s liquidity by comparing its total loans to its total deposits.

An increase in the loan-to-deposit ratio allows banks to expand their credits to businesses and individuals, however, a decline in LDR reduces their ability to loan customers from depositors’ funds.

CBN disclosed the increase in a circular titled “Re: Regulatory Measures to Improve Lending to the Sector of the Nigerian Economy”, signed by Adetona Adedeji, CBN Acting Director, Banking Supervision Department.

“Following a shift in the b  ank’s policy stance towards a more contractionary approach, it is imperative to review the loan-to-deposit ratio (LDR) policy to align with the current monetary tightening by the CBN,” the apex bank said.

“Accordingly, the CBN has decided to reduce the LDR by 15 percentage points to 50%, in a similar proportion to the increase in the CRR rate for banks.

“All DMBs are required to maintain this level and are further advised that average daily figures shall continue to be applied to assess compliance.”At the last monetary policy committee (MPC) meeting on March 26, the CBN retained the CRR at 45 percent and the liquidity rate at 30 percent.

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