Engages consultants to probe suspected derivation shortfall
Delta State has approved the revised 2021 to 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) at its virtual meeting presided over by Governor Ifeanyi Okowa.
The Commissioner for Information, Charles Aniagwu, while briefing correspondents at the end of the State Executive Council (SEC) meeting in Asaba, said the government also approved a projection of N306.44 billion budget for the 2021 fiscal year.
Aniagwu listed other projections in the budget as $40 per barrel oil benchmark, oil production volume of 1.86 million barrel per day, inflation rate of 11.9 percent, projected gross domestic growth rate of three percent and official exchange rate of N360/$.
“The document, which is also referred to as the Economic and Fiscal Update, Fiscal Framework and Budget Policy Statement (EFU-FF-BPS), fulfils the requirements of the Fiscal Responsibility Law (2020) as amended. In line with international best practices and the desire of the state government to ensure appropriate financial management and resource allocation, the 2021-2023 MTEF/FSP document is the sixth rolling edition in the series.
“The document is the basis for the preparation of the 2021 budget and having been approved and adopted, it will be passed to the House of Assembly for consideration, approval and application in the 2021 budget,” he explained.
ALSO, the government has approved the engagement of two consultants to probe the suspected shortfalls in the payment of oil proceeds on the principle of 13 per cent derivation by the Federal Government.
While briefing journalists in Asaba on the outcome of the SEC meeting on Wednesday, Aniagwu disclosed that the consultants would review records at the Nigerian National Petroleum Corporation (NNPC), Federal Ministry of Finance and other relevant agencies to reconcile figures and find out if the Federal Government had been faithful to its obligation.
His words: “The decision to probe the proceeds of oil derivation was part of measures to revive the state economy following the impact of COVID-19.
“There are instances where the Federal Government would say that they were paying subsidies. On such occasions, if the total amount is N100, for instance, and the government pays N40 subsidy, they will base the 13 per cent derivation on N60 instead of the initial N100. This is what we want to reconcile by engaging consultants.”
According to Aniagwu, if at the end of the day, nothing is discovered, the consultants will not be paid. “But if anything is realised, we will apply for refunds and the consultants will be entitled to 11.5 per cent.”
He said that SEC also approved N600 million as counterpart fund for the Sustainable Development Goals (SDGs) projects, and another N809 million as counterpart to fund projects handled by the United Nations Educational, Scientific and Cultural Organisation (UNESCO) and other global agencies.