BudgIT Nigeria Profile picture
Sep 20, 2018 10 tweets 5 min read Twitter logo Read on Twitter
THREAD: Friends, ahead of @EiENigeria and partners debate with Osun Guber candidates, let's have a quick review of Osun State Finances.

You will notice that Osun State receipts from FAAC has dwindled. From a Net FAAC Allocation of N46bn in 2013 to N10.4bn in 2017. #OsunDecides
Oil prices started falling in 2014, a big challenge for Osun State has been its accumulation of debt not linked to growth in internal revenues. Total Debt Stock moved from N51bn in 2013 to N167bn as at 2017. #OsunDecides
The big challenge for Osun State is the direct DEDUCTIONS by CBN before it earns FAAC allocation.

According to BudgIT Research, Osun gross allocation between 2015 and 2017 is meant to N109bn. However, N73bn was deducted leaving the state to receive on N36.5bn. #OsunDecides
There were months which Osun received nothing from FAAC as its deductions due to the bond repayments were more than the actual amount meant to be received from FAAC. This happened in March and June 2016. Osun's NET FAAC was in negative. #OsunDecides
According to updated NBS report, its annual IGR has grew from N8.89bn in 2016 to N11.7bn in 2017. This is equivalent to the average Lagos State IGR collection in 14 days.

The State Govt claims N13bn in 2017. #OsunDecides
The main support to pay Osun’s salaries has been from the Paris Club Refund. In total Osun State has received N40.96bn, with the following: Tranche 1 (N11.74bn), Tranche 2 (N6.3bn), Tranche 3 (N6.3bn), Tranche 4 (N16.6bn).

There is no other Paris Club Tranche. #Osundecides
Here is the pattern of Osun State deduction since the start of 2018. N2.4bn is deducted monthly before its final allocation is remitted to the state. When does Osun fiscal challenge end? #OsunDecides
The next State Governor does not have an easy job. As the state govt ended its “modulated/fractional” salaries, which has gone on for 3 years. Osun has also not been able to meet obligations to tertiary institutions. Full salary payments are put at N3.5bn monthly.

Finally, Out of 36 States, Osun ranks number 35 on our 2018 State Fiscal Sustainability Index. It has come up in 35th or 36th position in our last 3 issues, mainly due to high debt and weak IGR.

The answers aren’t easy. Are the candidates up to the task?

If oil prices fall again and there is no further support from FG such as Paris Club Refund, what is the fate of Osun with average IGR around N1bn monthly?

#OsunDecides #AskQuestions

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More from @BudgITng

Sep 19, 2018
Extracts from the 2018 State of States Reports!


This is how your state generated its IGR in 2017! Its Obvious Lagos State is the Elephant in the room.

This is what your state is owing when it comes to DOMESTIC DEBT. Well, Its obvious Lagos state is also taking the LEAD.

This is the details of what your state makes from your VALUE ADDED TAX. Nassarawa State has the lowest.

Read 8 tweets
Aug 8, 2018

NNPC claims it lost N111.42 billion worth of crude oil and products in its custody between 2015 - 2017. This is separate from the N427 billion it claimed as financial losses incurred at its corporate headquarters alone, CHQ within the same period.

NNPC paid N450 billion as subsidy to oil marketers without approval of the National Assembly. As a result, PMS 'consumed' JUMPED from 24.1m litres/day to a peak of 52.7m liters/day in March 2017. The extra, cheap fuel is sent out for sale neighbouring countries.

NNPC deducted N427 billion from Nigeria's crude oil revenue - without approval of the National Assembly @nassnigeria - to cover 'financial losses' at its corporate headquarters, CHQ alone between 2015 - 2017.

This is more than the 2018 budget for Health of N356bn.

Read 8 tweets
Jun 13, 2018
Join us at 12:00 pm as we discuss the Petroleum Industry Administration Bill @NRGInstitute @OSIWA1 #FixOurOil
What is the Bill meant to do? #FixOurOil
What is the objective of the PIAB? What is it meant to achieve? #FixOurOil
Read 27 tweets
May 29, 2018
THREAD: Here is the review of the performance of the current administration of @NGRPresident @MBuhari. We present few charts to show the economic directions, with recent growth less than 2%.

From June 2015 to December 2017, FG has spent N13.23tn, with only 12% (N1.58tn) going to capital expenditure. Source: CBN
FG has spent more on recurrent expenditure than revenue collected. This is shows that contrary to the Fiscal Responsibility Act, FG is borrowing to fund recurrent expenditure.
Read 14 tweets

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