Economy & Politics
FAAN denies allegation of stolen N750 million, admits breach of procurement process
FAAN says that the accusation of the theft was just a low and unsubstantiated blow.
The Federal Airport Authority of Nigeria (FAAN), has denied allegations of stolen N750 million from its coffers, as alleged by an online medium. The aviation agency, while describing the allegations as entirely false, said that no funds to the tune of N750 million were approved or even went missing due to fraudulent contracts, as alleged.
This was disclosed in a series of tweet posts by FAAN, through its official Twitter handle on Thursday, July 30, 2020.
An online medium had reported a stolen N750 million, following a fraudulent contract scheme that may have indicted top staff of FAAN. However, while speaking under conditions of anonymity, a highly-placed source within FAAN stated that the only procurement issue that was identified happened in February 2020.
According to tweet posts from FAAN, “Allegations of a stolen N750 million from the coffers of the Federal Airports Authority of Nigeria (FAAN) is entirely wrong, as no funds to the tune of any amount were approved or ever went missing due to a fraudulent contract.
READ MORE: FAAN now manages Murtala Muhammed International Airport’s toll gate
‘’The Managing Director himself, discovered and queried some procurement documents in February 2020. When the answers to the queries were found unsatisfactory, an investigation was launched, the staff involved were suspended, and later replaced in their official capacities.
‘’The recommendations of the management investigation were forwarded to the Federal Ministry of Aviation in June 2020. All this is fully documented and in line with federal civil service procedures.’’
The statement also pointed out that some of the names being bandied around had no role in the failed procurement process. It encouraged investigative reporters to cross-check their stories and get factual information instead of smearing innocent people and settling personal scores.
READ MORE: FG pays doctors’ N15.8 billion hazard allowance
The statement from FAAN says that the accusation of theft was just a ‘low and unsubstantiated blow’ that could have been better clarified instead of going all the way to run the organization down. It also reiterated that a failed attempt to undermine the integrity of the procurement process, is not a theft, just as there was never any theft.
Also speaking on the issue of half salary to members of staff as was also reported by the online medium, a source in FAAN said due to paucity of funds, management decided to ease the burden of expenditure for all staff in view of the big Sallah on Friday by paying half salary to all senior staff only, with the balance to be paid next week.
All FAAN junior staff were paid their full 100% salaries (that is GLs 1-7). It also stated that a notice to this effect was on all FAAN staff platforms since yesterday and the unions later got to know of it.
READ ALSO: UPDATED: Nigeria Inflation rate hits 12.2% as food index rises
An online media report had alleged that some top officials of FAAN and some of their children had conspired to steal N750 million from the aviation agency by re-awarding old contracts that had earlier been awarded by the Aviation Minister, Hadi Sirika.
They alleged that the fraud was carried out by staff of the procurement department with the help of officials of the account and audit departments.
No missing N750m in FAAN
Allegations of a stolen N750 million from the coffers of the Federal Airports Authority of Nigeria ( FAAN) is entirely wrong, as no funds to the tune of any amount was approved or ever went missing due to a fraudulent contract.
— Federal Airports Authority of Nigeria (@FAAN_Official) July 30, 2020
Economy & Politics
FG places high profile Nigerians under security watch for terrorism financing
The FG has said that it is currently profiling a large number of high profile Nigerians who have been alleged to have reasonable links to terrorism financing.
The Federal Government has said that it is currently profiling a large number of high profile Nigerians who have been alleged to have reasonable links to terrorism financing.
This follows the arrest of an undisclosed number of suspects recently after the convictions of some Nigerians on terrorism financing in the United Arab Emirates (UAE).
This disclosure was made by the Attorney General of the Federation and Minister of Justice, Abubakar Malami, during a chat with the press at the Presidential Villa, Abuja on Friday.
What the Attorney General of the Federation is saying
The Minister said that the convictions of Nigerians in the UAE has given rise to wider and far-reaching investigations in Nigeria.
Malami in his statement said, “As you will actually know, sometimes back, there were certain convictions of Nigerians allegedly involved in terrorism financing in the United Arab Emirates (UAE).
That gave rise to a wider and far-reaching investigation in Nigeria and I’m happy to report that arising from the wider coverage investigation that has been conducted in Nigeria, a number of people, both institutional and otherwise, were found to be culpable, I mean reasonable grounds for suspicion of terrorism financing have been established, or perhaps has been proven to be in existence in respect of the transactions of certain high-profile individuals and businessmen across the country.
I’m happy to report that investigation has been ongoing for long and it has reached an advanced stage. Arriving from the investigation, there exists, certainly, reasonable grounds for suspicion that a lot of Nigerians, high-profile, institutional and otherwise, are involved in terrorism financing and they are being profiled for prosecution.
In essence, it is indeed true that the government is prosecuting and it’s indeed initiating processes of prosecuting those high-profile individuals that are found to be financing terrorism. It is indeed true.
However, Malami did not give the number of such suspects as he maintained that investigation was still ongoing until a conclusion is arrived at.
“As to the number, the investigation is ongoing and it has to be conclusive before one can arrive at a certain number, but one thing I can tell you is it is a large number and they are being profiled for prosecution.
It is indeed a large number and I’m not in a position to give you the precise number as at now because the profiling and investigation are ongoing.”
Malami warned that government will not hesitate to invoke the full wrath of the law on anyone found culpable in sponsoring terrorism in the country as nobody found culpable in terrorism financing will be spared.
What you should know
It can be recalled that in March 2021, the Association of Bureau De Change Operators of Nigeria (ABCON) confirmed the arrest of some of its members by security operatives over the investigation of some of their transactions which border on money laundering, terrorism financing and Know Your Customer status.
ABCON in its statement said that it considers these as serious allegations especially given the security challenges facing the country. It appealed to the authorities to expedite action to ensure that innocent people who have been caught up in this investigation can be released and so that they can return to their anxious families and resume their lives.
Economy & Politics
Top States in Nigeria with highest IGR per population in 2020
Nairametrics ranks the 36 states of the Federation, including the Federal Capital Territory, based on their IGR per population.
Nigeria’s states generated a sum of N1.31 trillion internally in 2020, representing a marginal decline compared to N1.33 trillion recorded in 2019, and an increase compared to N1.17 trillion in 2018.
The downturn is attributable to reduced state revenue as a result of disruptions caused by the covid-induced lockdown, while the crash in crude oil prices also hampered economic growth.
Internally generated revenue is regarded as income generated by various states in the country, independent of their share of the revenue from the Federation Account. However, apart from the clear exception of Lagos State, all others depend largely on statutory allocations to run their state affairs.
Nairametrics ranks the 36 states of the Federation, including the Federal Capital Territory, based on their IGR per population, taking into account the estimated population size of each state as at 2016 and 5% growth rate between 2016 and 2020.
READ: Lagos State projects monthly IGR target of N60.31 billion for 2021 fiscal year
Geo-political zones
In terms of IGR per population for the six geo-political zones in Nigeria, South West takes the lead with an average of N13,966, having generated a sum of N561.01 billion and an estimated population of 40.17 million people. The South-South region followed with an average of N8,694 and a total aggregate IGR of N263.17 billion.
On the flip side, the North-Eastern region, which houses states like Bauchi, Borno, Yobe, etc. recorded the lowest IGR per population of N2,061 closely followed by North West with an average of N2,855.
Here are the top 5 states with the highest IGR per population in 2020.
READ: FG returns N78 billion to Rivers State as amount spent on federal roads
Lagos State – N31,794
Lagos State, regarded as the economic hub of the nation, with a total estimated population of 13.18 million people as of 2020, generated a sum of N418.99 billion as IGR in 2020. This represents an increase of 5.1% compared to N398.73 billion recorded in 2019.
- In terms of IGR per capita, Lagos State generated an average of N31,794 from each member of the population in 2020, as against N30,257 generated in the previous year.
- It is no surprise that Lagos State tops the rank, being a major epicentre for economic activities in the country. Lagos State is the largest city in Africa in terms of GDP, and the State is widely known for its large industries, with most corporations in the country headquartered within the state.
- It also houses major seaports in the country as well as the State Government’s aggressive taxation policies. These, amongst others, ensure the state makes more revenue internally compared to other states of the Federation.
- According to data obtained from the National Bureau of Statistics, Lagos State received a total of N115.93 billion as Federal allocation in the year 2020, representing 21.67% of the total revenue available to the state in the year.
- This shows the exceptional ability of the state to run its affairs, using its internally generated revenue with little or no support from the Federal purse.
READ: Kano State presents N147.9 billion budget for 2021 fiscal year
Abuja – N24,600
The Federal Capital Territory generated a sum of N92.06 billion in 2020, the third-highest state IGR in the year. However, based on IGR per population Abuja seats in second position with an average of N24,600.
- This represents a 23.5% increase when compared to N19,925 recorded in 2019.
- Abuja is the capital territory of Nigeria, with a total estimated population of 3.74 million people across a 7,315km square area.
- The state houses a lot of Federal ministries, having been made the country’s capital in 1991. Abuja is also a major conference centre in the country, as it hosts various meetings and summits annually.
- A cursory look at the data showed that the state’s IGR only accounted for 57.85% of the total available revenue, indicating that 42.15% of its revenue was gotten from the Federation account.
Rivers State – N15,281
Rivers State, being a major oil-producing state in the country, generated a sum of N117.19 billion as internally generated revenue in 2020.
- However, with an estimated population of 7.7 million people, its IGR per population stood at N15,281 in 2020, representing a decline of 16.5% when compared to N18,307 recorded in 2019.
- Rivers State is in the Niger Delta region of the country with much of the businesses in the state being oil exploration companies.
- Evident from the data obtained from the NBS, Rivers State relies heavily on statutory allocations from the Federal Government as well as their share of the 13% oil derivatives as it received a total of N141.19 billion from FAAC, representing 54.64% of the total available revenue in the review period.
Delta State – N10,045
Delta state, another state in the Niger Delta region of the country, with an estimated population of 5.9 million, generated a sum of N59.73 billion as IGR, and an average of N10,045 as IGR per population.
- Delta State is a major oil-producing state and ranks second to Rivers State. The State supplies about 35% of Nigeria’s crude oil and some considerable amount of natural gas.
- Delta State in the period received a sum of N186.83 billion as statutory allocation in 2020, thereby taking a huge part (75.8%) of the total revenue available to the state.
- Its IGR only accounted for 24.2% of the available revenue in the period, while N46.11 billion was generated as PAYE.
Ogun State – N9,263
Ogun State, a neighbouring State of Lagos State, generated a sum of N50.75 billion. In terms of IGR per population, the State generated a sum of N9,263.
- The State’s average income per population decreased by 28.4% compared to N12,945 recorded in 2019.
- The State is strategically located, bordered to the East by Ondo State, to the North by Oyo and Osun States, to the South by Lagos State and the Atlantic Ocean, and to the West by the Republic of Benin.
- Ogun State also joins the list of states that are much dependent on FAAC allocations as statutory payments stood at N37.7 billion, representing 42.61% of the total revenue.
Bottom five
Katsina – N1,386
Jigawa – N1,416
Benue – N1,736
Niger – N1,804
Bauchi – N1,821
