Ogun State House of Assembly today acknowledged two correspondences from the State Governor, Prince Dapo Abiodun, requesting the Assembly’s approval to reconcile unauthorized debits, utilize the balance due to the State as a result of unauthorized debits from the ECA, PPT & Royalties Account to net off domestic liabilities of the State to the Federal Government; and deduct, at source, a 5% consultancy fee (of the balance to be paid) to the NGF consultant, AJAP Financial Services Ltd.
According to one of the letters read today at the plenary presided over by Speaker Olakunle Olumo, “I write to inform Mr. Speaker and the Honourable Members of the House that the Federal Government, thought the Federal Ministry of Finance, Budget and National Planning, through a reconciliation process has established that States of the Federation were debited without recourse on proceeds from the Excess Crude Account (ECA), Petroleum Profit Tax (PPT) & Royalties accounts.
Consequently, Mr. Speaker, the Federal Government disbursed 40% of the reconciled amounts to State Governments as approved by the Federal Accounts Allocation Committee leaving an unpaid refund of 60%. At a meeting held on Thursday 30th March 2023, State Governors under the auspices of the Nigeria Governors’ Forum (NGF) resolved that this balance due (that is, 60% of remaining reconciled amount) be used to net-off State’s liabilities to the Federal Government and to deduct at source, a consultancy fee of 5% payable to the NGF Consultant, Ajap Financial Services Ltd.
As a result, the approval of Mr. Speaker and the Honourable Members of the House is sought to: Utilize the balance due to the State as a result of unauthorized debits from the ECA, PPT & Royalties Account to net off domestic liabilities of the State to the Federal Government; Deduct, at source, a 5% consultancy fee (of the balance to be paid) to the NGF consultant, AJAP Financial Services Ltd”.
In the same vein, the Governor while seeking the approval for the recovery backlog of stamp duties owed to the State and payment of consultancy fee in another correspondence stated, “I write to inform Mr. Speaker and the Honourable Members of the House that the 36 States of the Federation filed a case in the Supreme Court seeking amongst other reliefs, the refund of all monies collected as Stamp Duties to State Governments from January 2015 to December 2022.
Consequently at a meeting on the 30th March 2023, the Governors of the 36 States under the auspices of the Nigeria Governors’ Forum (NGF) resolved to explore an out of court settlement to enable the States access the unremitted backlog (Extract attached). Subsequently, the NGF engaged the services of a consultant, Ajap Financial Services, Ltd. to broker and facilitate payment to all States.
As a result, the approval of Mr. Speaker and the Honourable Members of the House is hereby required for the deduction at source, a 5% consultancy fee to be paid to the NGF Consultant, AJAP Financial Services Ltd from the State’s share of the backlog recovered on Stamp Duties for the period between January 2015 to December 2022”.
