Wednesday, 26 September 2012

Excess Crude Account: FG gets New Settlement Terms from states

States have proposed new conditions to resolve the lingering dispute between them and the Federal Government over illegal deductions from the Federation Account. Counsel to the Federal Government, Mr. Austin Aleghe, informed the Supreme Court of the new development when hearing resumed in the suit filed by the states seeking, among others, an order of the court to stop further deductions from the ECA to fund payment for fuel subsidy pending the determination of the suit.
According to the proposed new terms of agreement, the Federal Government will undertake and agree that upon the execution of the terms of settlement, it shall cause all sums standing to the credit of the ECA to be transferred to the Federation Account and distributed within 10 days from the execution of the terms of settlement to the three tiers of government—federal, state and local governments.
Under the new terms, the states are demanding that a limited liability company be established to take over the operations of the National Integrated Power Projects (NIPP) and the $8.425 billion invested in it. They are also demanding that the shares be allotted to the Federal Government, the states and the 774 local government areas with the rights and obligation of each shareholder spelt out.
Similarly, the states are demanding that the $250 million invested in the railway modernisation projects be transferred to a limited liability company, to be formed, in which the Federal Government, the states and the local government areas shall be the shareholders.

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