Government Proposed Strategy for Reducing Debt Through FDI
The government claims it is making strides to attract more foreign investment across the economy and decrease the country’s dependency on debt.
After meeting with President Muhammadu Buhari in private today, the Executive Secretary of the Nigerian Investment Promotion Commission, Saratu Umar, briefed state house correspondents on the government’s plans to strengthen the country’s Investment master plan in order to develop the economy.
She also emphasized the commission’s dedication to promoting FDI and easing the process of import substitution.
At the same time, the presidency has stated that nine oil-producing states have received 625.43 billion naira in derivation, subsidy, and SURE-P reimbursements from the Federation Account during the past two years.
Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers are among the states that have got refunds dating back to 1999, as stated in a statement released today by Mister GARBA SHEHU, Senior Special Assistant to the President on media and publicity.
Among the states that benefited were Abia (1.1 billion), Akwa-Ibom (15 billion), Bayelsa (11.6 billion), Cross River (432 million), Delta State (14.8 billion), Edo (2.2 billion), Imo (2.9 billion), Ondo (3.7 billion), and Rivers (12.8).
As of January 11, 2022, eight of the twelve installments owed to the states between October 2, 2021 and January 11, 2022 had been paid.
Using information obtained from the Federation Account Department, Office of the Accountant General of the Federation, the Presidency noted that between 2004 and 2019, the nine states received a total of 477.2 billion naira as a refund of the 13 percent derivation fund on withdrawal from the Excess Crude Account (ECA), without deduction for derivation, leaving a remaining balance of 287.04 billion naira.
According to the statement, states also received a return of the 13% derivation cash on deductions made by NNPC without payment of derivation to Oil Producing states from 1999 to December totaling 64.8 billion naira.
It was previously reported that President Muhammadu Buhari had approved reimbursements totaling 860.59 billion naira, however the Presidency has since confirmed that this amount is still indebted to the benefiting states.