The National Economic Council (NEC) chaired by Vice President Yemi Osinbajo on Thursday approved $150 million out of $400 million Nigeria Liquefied Natural Gas (NLNG) dividend to be shared amongst the three tiers of government.
The amount is to be shared according to the formula being used by the Federation Account.
The NEC members also agreed to invest the balance of $250 million in the Nigerian Sovereign Investment Authority, in order to increase its capital.
Osun State Governor, Ogbeni Rauf Aregbesola, communicated the NEC decision to State House correspondents at the end of the meeting attended by state governors, deputies and relevant ministers at the Presidential Villa in Abuja.
With him were Governor Ifeanyi Ugwuanyi of Enugu State, Minister of Budget and National Planning, Udoma Udo-Udoma and Nassarawa State Deputy Governor, Silas Agara.
Aregbesola said: “Managing Director of the Sovereign Wealth Fund Authority presented the status report on the Nigerian Sovereign Investment Authority to the council.
“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”.
Aregbesola added that the council also mandated the Ministry of Finance to investigate the report of government agencies generating revenues in foreign currency but remitting naira equivalent into the Federation Account and report.
He also said that the Central Bank of Nigeria (CBN) was mandated to enlighten the public on the forex policy and relevant laws and regulations to guide traders and others who encounter challenges regarding the movement of foreign currency across the nation’s borders.
“We understood that some traders, particularly in the East, encounter challenges at the airports when they intend to go about their businesses”, he added
On the balance in the Excess Crude Account (ECA), Aregbesola said: “At the end of the NEC meeting today, the Accountant-General of the Federation reported that the balance of the ECA stood at $2.257 billion and that is not much change from the last report”.
On the Treasury Single Account (TSA), the governor said the International Monetary Fund’s Senior Resident Representative and some other speakers ran the governors through a workshop on the policy.