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 FG partners ALSF on capacity building, restates trust in PPP

FAAC shares N582bn as February revenue to FG, States, LGs By Chika Otuchikere The Federation Accounts Allocation Committee (FAAC) has shared a total of N581.566 billion for February 2020 Federation Account Revenue to the Federal, States and Local Governments in the country. This was announced after a rescheduled meeting of the Federation Account Allocation Committee (FAAC) held in Abuja. on monday. The N581.566 billion comprised Statutory Revenue, Value Added Tax (VAT), Exchange Gain, and revenue from Forex Equalization Account. It was announced that the balance in the Excess Crude Account (ECA) was $ 72.221 million. The gross statutory revenue for the month of February 2020 was N466.058 billion. This was lower than the N525.253 billion received in January 2020 by N59.195 billion. For the month of February 2020, the gross revenue available from the Value Added Tax (VAT) was N99.552 billion as against N104.758 billion in the previous month, resulting in a decrease of N5.206 billion. Exchange Gain yielded a total revenue of N0.757 billion, and revenue from Forex Equalization Account was N15.199 billion. A communique issued by the Federation Account Allocation Committee (FAAC) indicated that from the total revenue of N581.566 billion, the Federal Government received N236.118 billion, the State Governments received N159.010 billion, and the Local Government Councils received N119.305 billion. The Oil Producing States received N45.310 billion as 13% derivation revenue and the Revenue Generating Agencies received N21.822 billion as cost of revenue collection. A breakdown of the distribution showed that from the gross statutory revenue of N466.058 billion, the Federal Government received N214.915 billion, the State Governments received N109.008 billion and the Local Government Councils received N84.040 billion. The Oil Producing States received N43.242 billion as 13% derivation revenue and the Revenue Generating Agencies received N14.853 billion as cost of collection. From the Value Added Tax (VAT) revenue of N99.552 billion, the Federal Government received N13.888 billion, the State Governments received N46.292 billion, the Local Government Councils received N32.404 billion and the Revenue Generating Agencies received N6.969 billion as cost of revenue collection. The Exchange Gain revenue was N0.757 billion and the Federal Government received N0.350 billion, the State Governments received N0.178 billion, the Local Government Councils received N 0.137 billion and the Oil Producing States received N0.092 billion. The Forex Equalization Account revenue was N15.199 billion. The Federal Government received N6.966 billion, the State Governments received N3.533 billion, the Local Government Councils received N2.724 billion and the Oil Producing States received N1.976 billion The communique confirmed that in the month of February 2020, Petroleum Profit Tax (PPT), Companies Income Tax(CIT), Import and Excise Duties, Oil and Gas Royalties and Value Added Tax (VAT) all recorded substantial decreases.

 

The Permanent Secretary of the Ministry of Finance, Alhaji Mahmoud Isa-Dutse has reiterated the Federal Government’s commitment to Public Private Partnership (PPP) model as a viable option for the development of infrastructure in the country.

The ministry’s director of information, Mr. Hassan Dodo made this known in a statement in which he said the Permanent Secretary disclosed this in Abuja during the opening of a three-day capacity building workshop on Public Private Partnership (PPP) Projects for Public Servants in the Railway and Inland Dry Port sector.

Dodo said Alhaji Dutse, who was represented by the Director, Technical Services Department in the Ministry, Mrs Fatimah Hayatu, said the Federal Government may not have all the finances required to fund all infrastructure deficit, thus Public Private Partnership (PPP) is the credible alternative to traditional procurement.

He explained that the decision of the Federal Government to commit resources to skills and capacity development of public servants handling PPP projects was in a bid to enhance the officers’ ability to develop, negotiate, attain financial closure and manage the post-contract phase of Public Private Partnership (PPP) projects.

The Federal Government had in 2017, through the Federal Ministry of Finance, entered into a cost sharing grant agreement with the African Legal Support Facility (ALSF), a subsidiary of the African Development Bank, deliberately for the development of capacity and knowledge of public officers charged with the delivery of Public Private Partnership (PPP) Projects.

“The first work stream of the training was held in 2018 and it focused on all aspects of Public Private Partnership (PPP), with participants drawn from various critical infrastructure Ministries, Departments and agencies (MDAs).  The 2019 capacity building exercise, co-sponsored by the Federal Ministry of Transportation, focused mainly on Public-Private Partnerships within the railway and inland dry ports sub-sector of the transportation sector,” he said.

A Deputy-Director in the Federal Ministry of Finance, Barrister Moremi Soyinka-Onijala explained that the capacity building, an initiative of the Honourable Minister of Finance on realizing the need to equip the officers in discharging their duties in Public Private Partnership (PPP); was in line with the Honourable Minister’s responsibility to manage the fiscal affairs of the country.

“The focus of the 2019 training on the railway and inland dry ports showed that the Federal Government was deeply concerned about the infrastructure deficit in the sector and was working to attract private investment to bring in required funds to develop and operate projects within the sub-sectors,” she said.

She expressed optimism that the workshop will increase efficiency and effectiveness in the procurement of PPP projects by reducing the reliance on foreign Transaction Advisors for Public Private Partnership (PPP) projects.

In a presentation, Ikenna Emehelu, a partner with the US law firm Norton Rose Fulbright pointed out that, “Federal Government doesn’t have enough money to build up Nigeria’s infrastructure; PPP model allows the Federal Government to share risk and responsibility of designing, building, financing, operating, and maintaining physical infrastructure projects with the private sector.

“But Federal Government cannot assure that it struck a good deal with the private sector, unless its staff are trained to negotiate with the private sector”.

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