Economy Archives — Page 3 of 7 — Business Bells

Business Bells

Category: Economy

  • We’re Borrowing Sensibly And Responsibly, Says FG

    We’re Borrowing Sensibly And Responsibly, Says FG

     

    Contrary to the criticisms that have continued to trail the nation’s increasing debt profile, the Federal Government on Monday says it is borrowing “sensibly and responsibly.”

     

    The Minister of Finance, Budget and National Planning, Zainab Ahmed, said this at a press conference in Abuja.

     

    She was joined at the brieifing by the Minister of Information and Culture, Lai Mohammed, and some other top government officials from her ministry.

     

    Ahmed was answering a question on whether the government’s continue borrowing is not capable of impacting negatively on the economic growth recorded so far recorded.

     

    But the minister explained that the government only borrow to invest on infrastructures that will later yield proceeds for the country.

     

    “We are borrowing sensibly and responsibly to invest in critical infrastructures.

     

    “These investments will make returns in future,” she said.

     

  • Buhari To Place 20,000 Nigerian Graduates In Fully Paid Jobs

    Buhari To Place 20,000 Nigerian Graduates In Fully Paid Jobs

     

    President Muhammadu Buhari is expected to make a key announcement on the Nigeria Jubilee Fellows Programme on Tuesday.

     

    The programme aims to place 20,000 skilled young Nigerian graduates (under the age of 30) into jobs in private and public sector organizations around the country.

     

    The jobs will last for 12 months, will be fully-paid, and will seek to help prepare qualifying recent graduates for their future careers and work environments.

     

    This is according to presidential spokesperson, Tolu Ogunlesi.

     

    According to Mr Ogunlesi, the goals of the program include “improving employability, building useful career and leadership skills in young graduates, and connecting employers and potential employees.”

     

    The programme is supported by the United Nations Development Programme (UNDP).

     

    On Tuesday, President Buhari is expected to announce when applications for both fellows and host organizations will officially open.

     

     

  • Crypto Gains Traction in Adult Industry Amid OnlyFans Drama

    Crypto Gains Traction in Adult Industry Amid OnlyFans Drama

    Porn stars, sex workers and others in adult entertainment were taking a closer look at cryptocurrency payments in the wake of a series of troubles with the mainstream financial system, potentially propelling digital currencies into wider use.

     

    The latest problem came earlier this month when OnlyFans announced it would ban sexually explicit content on the sex-friendly creator site, only to reverse course days later following a backlash.

     

    Nonetheless, the drama could accelerate a move to cyptocurrency to allow anonymous payments to performers outside the banking system.

     

    With stricter rules from payment processors and the recent issues with OnlyFans, “it’s obvious crypto will be the solution,” said British performer Adreena Winters, who is also a brand ambassador for an upcoming crypto-friendly adult content marketplace.

    Cryptocurrency

    “Porn has frequently been the factor for new concepts taking off, be it VHS, online credit card payments and even the internet, so I don’t think it’s surprising that porn will be what eventually get crypto to become mainstream.”

     

    Jeff Dillon, chief development officer at Nafty, a cryptocurrency platform launched this year specifically for the adult industry, said the OnlyFans saga “has done more than any marketing we could ever paid for.”

     

    – Sex leads tech –

    Dillon said the sex industry has paved the way for other innovations online, such an online credit card payments and instant verification, and that it may do the same for cryptocurrency if payment processors make it more difficult.

     

    “This is going to catapult momentum for crypto and alternative payment solutions,” he said.

     

    Dominic Ford, founder of JustFor.Fans, an OnlyFans rival which accepts bitcoin, said crypto represents just a small fraction of transactions on his platform because it is more cumbersome, but suggested this could ramp up quickly if popular money transfer tools adapt.

     

    “A cryptocurrency that works online and transcends borders seems an obvious evolution like email was the evolution of mail,” said Ford.

     

    CumRocket, a startup which created a digital coin called Cummies for adult content, announced in recent days it was accelerating work on its own content platform.

     

    “Sex workers should have the opportunity to join a platform that won’t be subject to any payment processing restrictions, something that the other OnlyFans alternatives that use fiat may be subject to in the upcoming months/year.”

     

    While bitcoin and other digital currencies have seen extreme volatility, adult operators say they can avoid those issues by using them for immediate payments without storing them.

     

    – US law and liability –

    OnlyFans was not the only online service to struggle with acceptance of mature content.

     

    PornHub has been accepting cryptocurrency for its premium service “to keep current with our community’s privacy and payment preferences.”

     

    Visa and Mastercard temporarily banned payments last year to sites owned by porn giant MindGeek, which owns PornHub and other sites, over reports that it was hosting non-consensual “revenge porn”.

     

    And this month, US lawmakers demanded an investigation into alleged child pornography on OnlyFans.

     

    Ford said congressional passage of the FOSTA-SESTA law in 2018 created pressure on the adult content industry by holding online services liable for illegal content such as child exploitation or sex trafficking.

     

    Shortly after passage of the law, the social network Tumblr banned explicit content, resulting in a precipitous drop in usage.

     

    Crypto may be a mixed blessing, said US-based adult content creator Deon Glows, helping circumvent some of the restrictions in the banking system but also bringing in customers “seeking anonymity for unethical reasons.”

     

    “There is skepticism (on crypto) because sex workers want to make the barriers to entry as minimal as possible,” she said.

     

    “I’d like to see banking institutions and payment processors get with the times and be more liberal about the kind of businesses they allow.”

     

    Some adult operators say crypto is promising but not ready for the majority of users.

     

    “We will be looking to implement crypto and other alternative payment mechanisms as a backup and a option to support crypto enthusiasts but certainly not as a primary source for accepting or sending funds,” said a spokesperson for the British-based adult social media platform Unlockd.

     

    Lou Kerner, a cryptocurrency investor and analyst with Quantum Economics, said the adult industry could help bring crypto to more users.

     

    “It’s hard for people who work in the industry to get bank accounts. So they’ve been discriminated against for many years,” Kerner said.

     

    “As the technology becomes easier to use, more in the porn industry will adopt it… Crypto is undoubtedly on its way to mainstream adoption, and the more industries that are ill-served by traditional finance, the faster it will get there.”

     

    AFP

  • FG Has Lifted 10 Million Nigerians Out of Poverty in 6 Years —Minister

    FG Has Lifted 10 Million Nigerians Out of Poverty in 6 Years —Minister

     

    The Federal Government said it has lifted over 10 million Nigerians out of extreme poverty in six years, through the National Social Investment Programmes (NSIPs).

     

    Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar Farouq, disclosed this yesterday at a virtual launch of the Multidimensional Poverty Index (MPI) Survey.

     

     

    Umar Farouq explained that Nigeria has joined many countries that have moved towards improving the efficiency of their decision-making processes through the evidence generated by MPI.

     

    In a statement by her Special Adviser on Media, Nneka Ikem Anibeze, she said: “The consensus around the use of the MPI emerges from different approaches and global agreements, including the Millennium Development Goal (MDGs), which has been replaced by the Sustainable Development Goals (SDGs) to cover the multiple aspects of deprivation at the core of poverty and their inter-linkages.

     

    “It is therefore an honour to join other strong voices to highlight the importance of multi-stakeholder engagements on poverty eradication, zero hunger, quality education, climate action and inclusion, all of which are central to the evidence generated by the MPI.

     

    “The President Muhammadu Buhari-led administration has successfully empowered more than 10 million people out of extreme poverty through the many initiatives of Government, including the National Social Investment Programme (NSIP), GEEP, Npower, NHGSFP and many more.

     

    “This aspiration takes into cognizance the country’s current estimated population of about 200 million people, as well as the need for better evidence for programming.

     

    “The Ministry of Humanitarian Affairs, Disaster Management and Social Development therefore, stands ready to collaborate with different government agencies, donor organisations and private investors to shape policies and drive real impact in the use of MPI data to foster government accountability to citizens through improved multi-sectoral interventions targeted at the root of deprivations.

     

    “In addition, the ministry will collaborate closely with the National Bureau of Statistics (NBS) to conduct regular multidimensional poverty measurements alongside monetary measures at both national and sub-national levels to ascertain the true poverty status of Nigeria and use the findings to shape policy and programming.”

     

    Umar Farouq noted that government would partner with private sector actors using the special purpose vehicle of social investments to create a national and state poverty map/tracker which will help provide progress towards poverty reduction goals.

     

    “It will also collaborate with the Ministry of Finance, Budget and National Planning using MPI data to improve budget allocations by sector and State in order to target individuals, communities and areas needing dire attention,” she added.

     

    She thanked the World Bank Group, UNDP, OPHI, UNICEF, the High Commission of Canada, and other bilateral and multi-lateral bodies, for their support towards eradicating extreme poverty by 2030.

     

  • PMI Hits 18-month High in July, Amid Strong Demand Conditions

    PMI Hits 18-month High in July, Amid Strong Demand Conditions

     

    Nigeria’s private sector began the second half of the year on a positive footing as they continued the run of expansion that began in July 2020.

     

    Quicker upticks in output, new orders, purchases and employment supported growth. Despite this, firms were able to keep backlogs at bay, though sentiment did moderate to the weakest since last September.

     

    On the price front, higher raw material, wage and transportation prices were linked to another robust rate of overall input price inflation. Output prices also rose sharply.

     

    The headline figure derived from the survey is the Purchasing Managers’ Index™ (PMI®). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

     

    The headline PMI rose in July to 55.4, up from 53.6 in June. The reading signaled a marked improvement in business conditions, and one which was the strongest since January 2020.

     

    The uptick was centered on stronger demand conditions, with new orders rising at the fastest rate in one-and-a-half years. As a result, firms raised their output levels, and at the joint-quickest rate since August 2020.

     

    Greater output requirements led firms to raise their buying activity during the month, which they did so at the sharpest rate in one-and-a-half years. The sustained period of output and new order growth encouraged firms to add to their inventory holdings. Anticipation of greater demand was also linked to stockpiling efforts.

     

    To cater for higher workloads, firms raised their headcounts. Job creation has now been seen in each month since February. This allowed firms to clear their backlogs for the fourteenth month in a row. The rate of backlog depletion eased to the softest in four months, but was still among the quickest in the series history.

     

    Meanwhile, vendor performance improved again, a trend observed throughout much of the series’ history. That said, the rate at which lead times shortened was the softest in 15 months. According to firms, busier road conditions and material scarcity affected supplier delivery times.

     

    Material shortages drove higher costs, with firms also mentioning rising transportation and staff expenses. Overall input price inflation eased to a seven-month low, but was still strong in the context of the historical average. Output price inflation meanwhile quickened, with the improving demand environment allowing firms to raise their charges.

     

    Finally, sentiment remained positive amid plans to raise exports and expand business operations. That said, the degree of positivity moderated to the fourth-weakest in the series.

     

  • Refineries Suffer 13-Month Loss of N104.3bn, Refine Zero Oil

    Refineries Suffer 13-Month Loss of N104.3bn, Refine Zero Oil

     

    A total loss of N104.3bn was recorded by Nigeria’s refineries in 13 months, even as the facilities refined no crude oil throughout the period, the latest report released by the Nigerian National Petroleum Corporation showed.

     

    An analysis of the updated consolidated refinery financial performance from February 2020 to February 2021 showed that the plants maintained losses monthly.

     

    The NNPC manages Nigeria’s refineries, namely Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company and Warri Refining and Petrochemical Company.

     

    Figures from the corporation showed that the monthly operating expenditures of the refineries surpassed their revenues all through the 13-month duration.

     

    In February, March, April, May, June, July and August 2020, the consolidated losses of the refineries were N9.36bn, N10.3bn, N9.69bn, N9.55bn, N10.23bn, N9.1bn and N7.1bn respectively.

     

    In September, October, November and December 2020, the facilities posted cumulative losses of N7.04bn, N5.49bn, N5.99bn and N8.28bn respectively.

     

    Their consolidated losses continued in 2021, as they lost N5.37bn and N6.88bn in January and February this year, being the most recent update from the corporation.

     

    This came as the oil firm’s latest report further showed that all through these months, the refineries were unable to refine crude oil.

     

    Providing an explanation for this, it said, “In February 2021, the three refineries processed no crude and combined yield efficiency is 0.00 per cent owing largely to ongoing rehabilitation works in the refineries.

     

    “The declining operational performance is attributable to ongoing revamping of the refineries, which is expected to further enhance capacity utilisation once completed.”

     

    The NNPC further explained that it had been adopting a merchant plant refineries business model since January 2017.

     

    It said the model took cognisance of the products worth and crude costs, as it noted that the combined value of output by the three refineries (at import parity price) for the February 2021 amounted to approximately N0.10bn.

     

    It added that there was no associated crude plus freight cost for the three refineries in February 2021 since there was no production, but observed that operational expenses amounted to N6.98bn.

     

    “This resulted to an operating deficit of N6.88bn,” the oil firm said.

     

    The Group General Manager, Group Public Affairs Division, NNPC, Kennie Obateru, recently said the $1.5bn rehabilitation of the Port Harcourt Refining Company had commenced in full and part of the facility would start delivering refined products by September next year.

     

    He told our correspondent that the entire rehabilitation programme would be over in 44 months, stressing that the contractor had already mobilised to site.

     

    The NNPC officially signed the contract with Tecnimont SPA for the $1.5bn rehabilitation programme of PHRC on April 6, 2021, and parties in the agreement announced the commencement of the project.

     

    “It (Port Harcourt refinery) will be completed within 18 to 44 months when counting from April this year. By 18 months some part of the refinery will be producing,” Obateru said.

     

    Also, oil marketers had urged the corporation to try and hasten the rehabilitation exercise of refineries, particularly the revamp of the Port Harcourt refinery.

     

    The President, Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, said, “If the refinery in Port Harcourt can be rehabilitated and it works and comes on stream in a swift manner, that will be a welcome idea.”

     

    He said it was high time the country started refining crude oil, as this would not only create employment but would impact positively on the overall economy of Nigeria.

  • How 100m Nigerians Will Be Lifted Out of Poverty – Osinbajo

    How 100m Nigerians Will Be Lifted Out of Poverty – Osinbajo

     

    • Inaugurates National Steering Committee on Poverty Reduction with Growth Strategy

     

    Vice President Yemi Osinbajo has explained that the Muhammadu Buhari’s administration plans to lift 100 million Nigerians out of poverty in ten years will not be based on a business as usual approach, but a very simple, common sense strategy that will deliver the results as promised.

     

    According to a statement by Osinbajo’s spokesman, Laolu Akande, the Vice President stated this in Abuja on Friday at the inaugural meeting of the National Poverty Reduction with Growth Strategy Steering Committee held at the Presidential Villa.

     

    He expressed confidence that the Committee will be able to achieve rapid progress, adding that “in order not to make this merely, another of those high-sounding committees that eventually achieve nothing, we have to be very intentional about our objectives and how to achieve them.”

     

    He said to members of the committee, that government would adopt a different and more effective approach in actualizing the objective of eradicating poverty in the country for the sake of delivering results.

     

    According to him, “I really want us to approach this as much as possible, commonsensically, so that we are able to resolve all the issues and focus on the real progress.

     

    “I want us to look beyond all of what we are going to be doing, there is going to be a considerable amount of paper work, but a lot of common sense is what grows economies. It’s what other countries have done, not really reinventing the wheel. So, I want us to focus on those commonsensical things, so that we can actually move forward.”

     

    Citing the example of Bangladesh where a poverty reduction strategy was also implemented, Osinbajo noted how the country’s manufacturing sector was key.

     

    “Bangladesh actually exports more garment than we export oil. Countries that have managed to get out of poverty have created a lot of jobs through industries, and they have developed intentional strategies.

     

    “We must look at what others have done, the smart things that other people have done, and adopt.”

     

    On agriculture, he said: “We really have to think smartly about how we are funding agriculture.

     

    “I think we really need to take a deep dive because governments have made several efforts at poverty alleviation but generally speaking, they have not yielded the sort of results they should yield, and I think it’s because there is a lot of focus on documentation and paper work and very little commonsense approaches,” the VP added.

     

    Osinbajo explained that National Poverty Reduction with Growth Strategy is meant to be a national strategy, not just a federal effort and it is aimed at taking 100 million people, nationally, out of poverty within a target time-frame of 10 years.

     

    His words: “I just want to emphasize that it is a national strategy as opposed to a federal strategy which is why the steering committee is made up of federal as well as state officials.”

     

    While also emphasizing the role of the private sector, the VP said “essentially, this effort must also be directed at how to facilitate private sector creation of jobs. The fact is that there is no way that the Federal Government or the State Governments can create the number of jobs that we need.

     

    “We need to take a few broad looks at the features of what constitutes our present predicaments in terms of job losses and unemployment.”

     

    Osinbajo added that efforts will be made to focus attention on creating opportunities for Nigerians to earn decent livelihoods in addition to equipping them with the necessary vocational skills.

     

    Those in attendance included Governor Kayode Fayemi of Ekiti State, who is also Nigeria Governors Forum Chairman, Governor Babagana Zulum of Borno State and Governor Abdullahi Sule of Nasarawa State.

     

    The Secretary to the Government of the Federation, Boss Mustapha; Ministers of Agriculture, Muhammad Nanono; Industry, Trade and Investment, Niyi Adebayo, and Labour and Employment, Dr Chris Ngige also attended, while the Minister of State for Budget and National Planning, Prince Clem Agba joined the meeting virtually.

     

    Later at the end of the inaugural meeting, and while fielding questions from journalists, Governor Sule of Nasarawa State said “the whole essence of the committee is for the government to be able to take 100 million Nigerians out of poverty in the next 10 years.”

     

    He said that having reviewed the Terms of Reference (TOR), the Steering Committee is now constituting the technical working group and the National Social Protection Network and then resume its meeting after the Sallah break.

     

  • Senate Passes N982bn Supplementary Budget to Boost Military Operations

    Senate Passes N982bn Supplementary Budget to Boost Military Operations

    The senate has passed a supplementary budget of N982 billion for the year 2021.

     

    The budget was passed on Wednesday after Jibrin Barau, chairman of appropriation committee, presented a report during the plenary session.

     

    While presenting his report, Barau said his committee engaged with Zainab Ahmed, minister of finance, and other stakeholders on the request.

     

    While N123 billion was approved for recurrent (non-debt) expenditure, N895 billion was earmarked for capital expenditure.

     

    The figure passed by the senate is N87 billion higher than what the executive sent as supplementary budget.

     

    President Muhammadu Buhari asked the national assembly to approve the supplementary budget request in June.

     

    The budget is meant to boost military operations and to facilitate the procurement of COVID-19 vaccine.

     

    After the supplementary budget was passed, Senate President Ahmad Lawan said the relevant committees of the upper legislative chamber must carry out oversight to ensure that the funds are properly utilised.

     

    “Committees should be alive to know these funds are applied. This is a very necessary intervention by this senate for the country,” Lawan said.

     

    “We have to continue to fund our security agencies even in the 2022 appropriation bill to overcome these security challenges.”

     

    Buhari had presented the initial 2021 budget proposal of N13.08 trillion to a joint sitting of the national assembly on October 8, 2020.

     

  • FG Suffers N15tn Revenue Shortfall in Six Years

    FG Suffers N15tn Revenue Shortfall in Six Years

     

    The Federal Government recorded a revenue shortfall of N15tn from 2015 to 2020, official data obtained by our correspondent have shown.

     

    The revenue shortfall led to a funding gap of N3.75tn in the implementation of capital projects of Ministries, Departments and Agencies, according to an analysis of the budgetary provisions and budget implementation reports from the Budget Office of the Federation.

     

    According to the documents, the total revenue projection for the six-year period was N31.9tn, while about N16.9tn was generated, resulting in a shortfall of N15tn.

     

    The total revenue allocated for capital projects in the period under review was N11.9tn, while the actual amount released to the MDAs was estimated at N8.2tn.

     

    The data showed that in the 2015 fiscal year, the Federal Government approved the sum of N557bn for capital projects, out of which N387bn was actually released, resulting in a funding gap of N169.6bn.

     

    From the N1.58tn budgeted for capital projects in 2016, the sum of N1.21tn was released, creating a deficit of N368bn.

     

    For 2017, N1.56tn was released for the execution of capital projects, out of the budgeted amount of N2.17tn. This resulted in a funding shortfall of N611.35bn.

     

    In 2018, the government approved N2.8tn for capital projects but released N1.8tn for implementation. This caused a funding deficit of N1.01tn.

     

    Further analysis of the data revealed that in 2019, a funding gap of N863.9bn for the execution of capital projects was recorded.

     

    In the 2019 annual budget, the total amount of N2.03tn was allocated for capital expenditure, out of which N1.16tn was released.

     

    An analysis of the revised budget for the 2020 fiscal year showed that N2.6tn was projected to be spent on capital projects, but N1.94tn was released. This resulted in a funding gap of N733bn.

     

    Economists told our correspondent that the annual revenue shortfalls could be largely attributed to the disproportionate reliance of the Nigerian economy on crude oil.

     

    They advised the Federal Government to focus on expanding its revenue sources in order to generate adequate revenue to finance capital projects for the benefit of the country’s economy.

    How LG Refrigerators Deliver Smarter Culinary Life and More Hygienic Food Management

    They explained that the revenue projections contained in the annual budgets were largely based on crude oil prices.

     

    A professor of Economics at the University of Ibadan, Adeola Adenikinju, said, “What the government should do is that they need to reduce their dependence on oil because oil will continue to transmit shocks and volatility to the revenue system.

     

    “And as much as possible, the executive and the legislature should work together to create a benchmark price for oil that is realistic; it shouldn’t be set arbitrarily. In other words, they should be more realistic in projecting oil price to mitigate the volatility on that side.

     

    “By expanding our revenue base this will enable us fund capital projects that are critical to a developing economy like ours.”

     

    Another expert and the Chairman Chartered Institute of Bankers of Nigeria, Prof. Uche Uwaleke, lamented that whenever the government recorded a revenue shortfall, the capital component of the budget suffered while the recurrent expenditure was prioritised.

     

    He said, “Prioritising capital projects will create job opportunities, reduce unemployment, reduce inflation via increased output, enhance ease of doing business and foreign investments, and strengthen the naira value.

     

    “In short, doing so will facilitate economic growth and development generally.”

  • Consolidated Revenue Fund Overdrawn by N2.48tr, says Auditor-General

    Consolidated Revenue Fund Overdrawn by N2.48tr, says Auditor-General

     

    The Auditor General of the Federation, Aghughu Adolphus Arhotomhen, has queried alleged unsubstantiated transfer of N3.627 trillion from government coffers to entities to fund recurrent expenditure in the 2018 financial year.

     

    He also said the Consolidated Revenue Fund was overdrawn to the tune N2.483 trillion in total disregard of Financial Regulation (FR) 710.

     

    Financial Regulation (FR) 710 stipulates that “No government bank account shall be overdrawn or any temporary advance obtained from a bank. In the event of an account being overdrawn, the Officer Responsible shall be made to refund any bank charges incurred thereon.”

     

    Besides, the AuGF, in his report submitted to the National Assembly, queried the funding of government investments in non-existent or moribund companies to the tune of N84.702 billion, adding that there was no evidence supporting investment of government in the companies.

     

    The part two report with reference number GF/AR.2018/VOL.II/02 of 25th March, 2021 was signed by the Auditor General of the Federation, Adolphus A. Aghughu and addressed to the Clerk to the National Assembly.

     

    According to the report, the sum  of N8.101 trillion was transferred to fund recurrent expenditure-receipt’ in the Consolidated Statement of Financial Performance, while the sum of N11.728 trillion by 944 MDAs gave rise to an unsubstantiated difference of N3.627 trillion which was recognised in the Consolidated Statement of Financial Performance.

     

    “The audit is unable to validate the correctness or otherwise of the difference under reference,” the AuGF said.

     

    The report said further that about 103 MDAs exceeded their Personnel Cost Budget by ₦641.757 billion in 2018 while another 115 MDAs had zero Personnel Cost even though there was Budget allocation for them.

     

    It queried the sources of extra funds for salaries and wages to the 103 MDAs and why there was zero personnel budget for the 115 MDAs even though the MDAs under reference had annual budgets approved for them.

     

    It expressed concern about the completeness and accuracy of the consolidated figures with respect to salaries and wages, adding that “the above anomalies could be attributed to absence of strong quality assurance around the consolidation process at the Office of the Accountant-General of the Federation.

     

    The risk to government resources, it said, is the fact that the consolidated financial statements may have been misstated while there may have been unauthorised virement instead of seeking approval of the National Assembly.

     

    It put the total amount of GIFMIS finalised payments for randomly selected 99 MDAs at ₦536.050 billion and the consolidated salaries and wages at ₦532.352 billion, leading to an understatement of ₦3,698 billion.

     

    The report said there was no further information to enable the audit to verify the understatement.

     

    It attributed the discrepancy to “weaknesses in the internal control systems around the consolidation process at the Office of the Accountant-General of the Federation”.

     

    The audit report disclosed that there were certain irregularities in the disclosure of aids and grants to MDAs to the tune of ₦219.562 billion, which it said was in contravention of Auditor-General for the Federation’s recommendation in 2017 report that ‘Aid and Grants’ should be disclosed in a recommended format.

     

    It said “as a result of the above violation, the sum of ₦219.562 billion shown as Aid & Grants could not be validated, and there was ‘Foreign Grants’ of ₦4,200.00 (Four thousand two hundred naira) as well as ‘Domestic Grant’ of ₦17,100.00 (Seventeen thousand one hundred naira) totaling ₦21,300.00 in favour of Federal Ministry of Foreign Affairs.

     

    “Audit is concerned as to what amount in foreign currency was donated to the extent that its naira equivalent was ₦4,200.00. The donor was not disclosed to enable audit follow up with circularization”.

     

    It said this makes accountability difficult and could cast doubt on the existence and accuracy of reported figures.

     

    On doubtful government investments in NITEL and other Moribund companies, the report said  about N84.702 billion was invested in companies whose going concern and continue existence are in doubt, adding that “efforts by the audit to verify the investment in NITEL yielded no result as the Agency in question had been liquidated.

     

    “Continued recognition of these investments without fully disclosing their impairment status in the Consolidated Financial Statements as required by the above IPSAS cast doubt as to their accuracy and existence.

     

    “Audit therefore concludes that since there is no evidence that supports government investment in NITEL and other companies, it is more likely that these investments may have been impaired,” it said.

     

    The Auditor General’s report also stated that some government agencies embarked upon overhead expenditure without appropriation while some others carried out unapproved virement to fund their overheads.

     

    It said about 14 MDAs incurred overhead expenditure totaling N162.924 billion without appropriation in total disregard to the 1999 constitution as amended, leading to possible misappropriation of funds.