Federal Executive Council on Wednesday approved the appointment of Transaction Parties for the Programme at the total estimated cost of N689.96 million (including Fees and Expenses to the Transaction Parties)
Minister of Finance, Zainab Ahmed disclosed this while briefing State House Correspondents after the weekly Federal Executive Council meeting presided over by President Muhamadu Buhari.
The Minister of Finance , Zainab Ahmed said the funds will be sourced from proceeds of FGN Securities Issuance.
Three categories of Transaction Parties are to be appointed for the implementation of the Programme and they include “An International Accounting Firm operating in Nigeria (for verification of the liabilities); ii) Financial Advisers (for the structuring of the Promissory Note); and, iii) Legal Advisers (for legal advisory services and litigations that may arise”
She disclosed that the Bureau of Public Procurement (BPP) has issued Due Process “No Objection” for the appointment of the successful bidders and their respective Fees and Expenses as detailed in Table 1 below.
The recommended Bidders and their Fees and Expenses include
KPMG, Joint Financial Advisers and Zenith Bank/Zenith Capital
Others include Coronation Merchant Bank/Access Bank, UBA/United Capital,
Joint Legal Advisers and SimmonsCooper Partners , D.D. Dodo & Co as well as Perchstone & Graeys at the total cost of N689.955
Federal Executive Council had at its meeting of July 12, 2017, approved the Establishment of a Promissory Note Programme for the settlement of Inherited Local Debts and Contractual Obligations of the Federal Government (the Programme) estimated at N3.4trillion.
According to the breakdown of the Creditors released by the Minister, Pension Liabilities amounts to N400billion, while Staff Claims of N270billion, with unpaid Salaries and 3rd party deductions standing at N24.95billion
Contractors Claims amounts N45.36billion, while Fuel Supply Accrued interest and Foreign Exchange differentials N514.29billion
Federal government indebtedness to State Governments Claims amounts N487.85billion, with Ministry of Health Outsourced Liabilities standing at N9.04billion
Federal government will pay N596.51billion, to contractors, as well as N350.12b for Export Expansion Grant (EEG) Scheme
Federal government is also expected to N112.96billion as judgement debts while DISCOS gets N26.71billion and GENCOS, N495.67billion
The Minister while explaining benefits of the Programme, said it is expected to provide stimulus to the economy and unlock investment across a number of sectors currently having liquidity issues.
“ An immediate a positive impact on the non-performing loan ratios of banks which will in turn, increase the banks capacity to lend, as well as enables the Federal Government to formally recognise and account for its true liabilities in line with the International Public Sector Accounting Standards (PSAS)
The President had forwarded the program for the approval to the National Assembly in compliance with the Fiscal Responsibility Act, while the National Assembly granted the approval in December 2018, for the Issuance of Promissory Notes to two (2) creditor categories from the Programme:
They included refund to 21 State Governments for projects executed on behalf of the Federal Government (Refunds to 4 States – Bauchi, Delta, Kogi and Taraba, were not approved) (N488,743,526,204.77).
The National Assembly also approved Payment to Oil Marketing Companies (OMCs) for Fuel Supply Accrued Interest and Foreign Exchange Differentials amounting to N348,003,054,975.00.
“Subsequent to the submission of this Memo to Council, NASS approved the following additional items, refunds to two (2) State Governments (Delta and Taraba States) – N90,236,461,031.36;
“Payment for six (6) Contractors – N206,065,107,252.69; as well as payment of Exporters Claims under the Export Expansion Grant (EEG) Scheme – N195,089,234,808.63.
The Federal Executive Council also approved the appointment of Transaction Parties for the Programme, as follows
“To incur a total estimated cost of N689.96 million (including Fees and Expenses to the Transaction Parties) in implementing the Programme and that the funds be sourced from proceeds of FGN Securities Issuance.
Minister of Budget and National Planning , Udoma Udo Udoma said Federal Executive Council (FEC) approved knowledge, N- power multi tracking youth and empowerment programme, at the total cost of N5.6 billion
The programme, he said targets 12,000 young Nigerians of between the ages of 18-25 years and is meant to give them trainings and devices.
The trainings intend to transform the 12,000 beneficiaries from unemployed, under-employed trainees to employed citizens and entrepreneurs.
It will deliver to 12,000 beneficiaries informed trainings that will enable beneficiaries build and imbibe technical proficiency such as assembling, repairs, maintenance as well as technology skills and digital literacy across a wide range of electronic brands, products and technology which can be grouped into three areas – mobile devices, computing devices and commonly used electronic devices irrespective of their socio-economic backgrounds.
“It’s a programme that is open to all unemployed youths across the six geopolitical zones. Each of the 12,000 targeted beneficiaries will be empowered to train 5,000 youths via a training platform which means they will need to translate the jobs to 60,000 additional jobs because each of the 12,000 is empowered to train five other youths via a training platform and engage them on his or her platform. The project is awarded to Messrs Softcam.
It’s of nine months’ duration. Softcam will be working with officials of Social Investment Programme.
“It will cost N259,000 per youth for the training and N207,000 for work tools. Thereafter, once they are trained, they will set up their businesses. Each of the 12,000 beneficiaries will set up his/her business. The cost is N5, 595, 865 billion
The idea is to ensure that our youths are trained and capable of handling all these electronic equipment.”
Tony Ailemen, Abuja
