Federation Account: We want more money –Govs

 From Juliana Taiwo- Obalonye, Abuja

GOVERNORS of the 36 states of the federation under the aegis of Nigeria Governors’ Forum (NGF), are demanding more money and advocating a review of the extant revenue formula.

At a meeting with President Muhammadu Buhari in Abuja yesterday, the governors, in addition to a new revenue formula, are also demanding refund of debts owed them for 10 years for federal projects done and 18 months moratorium for debts they owe the Federal Government.

This was just as Buhari has expressed concern that nearly two-thirds of states of the Federation are still having difficulties paying salary despite the bail-out funds provided to them by the Federal Government.

The current revenue formula provided by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) gives the Federal Government 52 per cent while states take 26.72 per cent and local governments 20.60 per cent from the federal account. Oil-producing states get 13 percent from the federal purse.

Governors, under the NGF, in 2012 demanded a drastic reduction in the executive’s share from the Federation Account and an increase of the percentage given to states from 26 percent to 42 percent.

Buhari, at a meeting with the NGF at the Presidential Villa in Abuja, said he was very disturbed by the hardship workers across the country and their families were facing due to the non-payment of salaries.

He has assured that the Federal Government will strive to make more funds available to the states by expediting action on refunds due to them for the maintenance of federal roads and other expenses incurred on behalf of the Federal Government.

Buhari, in line with the demands of the governors, agreed to establish an Inter-Ministerial Committee to study a fiscal restructuring plan for the federation.

The president said the committee will review the plan to improve the finances of state governments and make recommendations on how proposals in the plan should be dealt with by the Presidency, the Federal Executive Council and the National Assembly through legislation.

Buhari told the governors that while he was ready to do all within his powers to help the states overcome their current financial challenges, they should bear in mind that the federal government also has funding problems of its own to contend with.

“You all know the problems we have found ourselves in. You have to bear with us,” he said.

Chairman of the forum, Governor Abdulaziz Yari of Zamfara State and his colleague from Kaduna State, Nasir el-Rufai, who chaired the committee that worked on the Fiscal Restructuring Plan, asked the federal government to do more to help the states financially.

The governors told the president that while they had resolved to take other measures to boost their internally-generated revenue, implementation of the Fiscal Restructuring Plan will help them to deal with their funding problems on short, medium and long-term bases.

They said if the plan was adopted and implemented, states will become more financially empowered to fulfil their constitutional responsibilities.

Fielding questions from State House correspondents at the end of the meeting, Yari described as temporary measures all the support received from the Federal Government in terms of bail-out, restructured debts and 15 per cent of the excess crude account for development.

According to him, the state workforce have increased and since they cannot attempt to cut salaries and wages, and the issue of internally generated revenue cannot be done overnight, they needed more funds to meet the demands of the state.

“You will agree with me that states are the landlords, we own the land and the people, so, the economy of this country lies in the states. Everything comes from the state, the oil, agricultural produce, mining and people are in the states while the federal government is in Abuja.

“So, if any state has any issue and is known to Mr President, I doubt very much if he will be able to sleep with his two eyes closed.

“We are closer to the people and have many challenges in the states. Today we have received support from the federal government in terms of bail-out, restructured our debts, given us 15 percent of the Excess Crude Account for development. All these are temporal measures.

“For the short term we are looking at a situation whereby our debts that are hanging since 2005 right from Obasanjo’s exit from the Paris club, be released to us so that the states that are having difficulties can get money from there.

“We are asking for loan restructuring, bail-out and ECA, we are asking for 18 months moratorium on our debts before we can start paying, so that we would able to strategise.

“To develop Internally Generated Revenue (IGR) is not overnight, it is a long term programme that one has to plan for. And also our service have exploded and there is nothing we can do about it because people are getting their daily bread from there and we cannot say we are going to cut salaries and wages.

“We have to find a solution otherwise we would keep going back and forth because the plan you had for $100 per barrel and with oil now selling for $28 and $31, you will not achieve any thing.

“Part of the medium term programme, we are looking at the revenue mobilisation formula in ensuring that resources which were due for the past 10 years to states will be made available to them after the National Assembly approval. While the agricultural and minining will be a long term programme.

“The committee that will be set up will have the Vice President, Yemi Osinbajo minister of power, works and housing Babatunde Fashola because he headed similar committee on revenue formula at the Nigeria Governors Forum in 2012/2013.