FG, States to share $150 million NLNG dividends


The National Economic Council (NEC) chaired by Vice President Yemi Osinbajo on Thursday approved the sharing of $150 million from $400 million Nigeria Liquefied Natural Gas (NLNG) dividend by the Federal Government and state government.

The Council also approved that the balance of $250 million be invested in the Nigerian Sovereign Investment Authority in order to increase its capital.

Osun State Governor, Rauf Aregbesola briefed State House correspondents at the end of the meeting.

He was accompanied by Enugu State governor, Ifianyi Ugwuanyi, Minister of Budget and National Planning, Udoma Udoh Udoma and Deputy Governor of Nassarawa State.

They briefed the press after about seven hours meeting at the Council Chamber of the State House, Abuja.

Aregbesola said: “The Managing Director of the Sovereign Wealth Fund Authority presented the status report on the Nigerian Sovereign Investment Authority (NSIA) to the council. After due deliberations on the report, the council agreed that $250m from the $400m NLNG dividend be invested in the Nigerian Sovereign Investment Authority to increase its capital.

“Council resolved that the balance of $150 million of the said $400 million NLNG fund be shared accordingly in the prescribed formulae at the Federation Account.

“Council directed the Minister of Finance to constitute an executive nomination committee and work in consultation with NEC to appoint appropriate persons to take over as board members of the NSIA of the current board is dissolved,” he added

On the report of government agencies generating revenues in foreign currency but remitting naira into the federation account, he said that the Council mandated the Ministry of Finance to investigate and report back.

He also said that the Central Bank of Nigeria (CBN) was mandated to embark on sensitisation and public enlightenment on the forex policy and relevant laws and regulations in order to guide traders and others who encounter challenges regarding the movement of foreign currency across the nation’s borders.

Trade Club

“We understood that some traders particularly in the East encounter challenges at the airports when they intend to go about their businesses,” he added.

On the balance in the Excess Crude Account (ECA), he said: “At the end of the NEC meeting Thursday, the Accountant-General of the Federation reported that the balance of the ECA stood at $2.257 billion and that is not much change from the last report.”

According to him, the Director General of PENCOM briefed the Council on the contributory pension scheme implementation effort and status of implementation by the states.

Highlight of the briefing, he said, was on the sustainability of the pension arrangement, scorecards of the states in the implementation of the scheme, the challenges being faced by the states, opportunities and also the steps towards full implementation by the states.

“The briefing also highlighted the need for the states to provide legal frameworks such as enacting state pension laws by those who have not done so, establishment of states pension agencies, consistent remittance of both employees and employers contributions and also full compliance of all provisions of the pension scheme,” he stated

The governor also disclosed that the International Monetary Fund (IMF) Senior Resident Representative made presentation in a workshop for state governors during the Council meeting on Treasury Single Account (TSA).

He said: “Presentations were made on the listed sub topics: implementation of TSA in states: lessons and experience; cash management and TSA reform: an overview of international practice; and budgeting reforms.”

Under the AOB, he said, that the Council considered the need to reconstitute the members of the governing board of the Niger Delta Power Holding Company.

In that direction, he said that the Vice President called for the nomination of new board members based on the six geo political zones.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.