Governors agree to share $150m NLNG dividend

The 36 states of the federation will join the federal and local governments to share $150 million out of the $400 million Nigeria Liquefied Natural Gas dividend.

According to the National Economic Council ‎(NEC), whose members ratified the move at a meeting on Thursday, the sum will be shared among the three tiers of government according to sharing formulas applicable to the federation account.

Ratification of the sharing came on the same day state governors, rising from a meeting of the Nigeria governors forum, expressed fears that they were going bankrupt and that more states may be unable to pay workers’ salaries if the revenue of the country continues to be on the decline.

Briefing state house correspondents at the end of the NEC meeting, Rauf Aregbesola, governor of Osun state, said it was also agreed that the balance of $250 million would be invested in the Nigerian Sovereign Investment Authority in order to increase its capital.

“The managing director of the Sovereign Wealth Fund Authority presented the status report on the Nigerian Sovereign Investment Authority to the council,” he said.

“After due deliberations on the report, the council agreed that $250 million from the $400 million NLNG dividend be invested in the Nigerian Sovereign Investment Authority to increase its capital.

“The 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 if the current board is dissolved.

“The council resolved that the balance of $150 million of the said $400 million NLNG fund be shared accordingly in the prescribed formula at the Federation Account.”

On other matters, Aregbesola revealed that Chinelo Anohu-Amazu, director-general of the National Pension Commission, briefed the council of its activities.

“The DG of PENCOM briefed the council on the contributory pension scheme implementation effort and status of implementation by the states,” he said.

“Highlights of the briefing were 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.”

The meeting was attended by the 36 state governors or their deputies as well as ministers; and it was presided over by Vice President Yemi Osinbajo.