Sunday 29 September 2013

N466 Billion Revenue Deficit: More Governors set to oppose Jonathan

There are
indications that the raging revenue
allocation crises between the
presidency and the State governors
may spite more governors to go
against President Goodluck
Jonathan.

All the governors are said to be very
displeased with the Federal Government
over the non-payment of the three
months’ allocations by the Dr. Ngozi
Okonjo-Iweala-led Ministry of Finance.
The 36 states governors of the federation
had lamented over the non-receipt of
their arrears of about N466 billion from
the federation action for about three
months.

It is pertinent to recall that the Chairman
of Finance Commissioners Forum, Timothy
Odaah had rejected the recent allocation
from the Office of Accountant General of
the federation allocations on the basis
that the states were being owed N336
billion, with the N75 billion being the
balance of the July 2013 arrears, N121
billion from June augmentation and over
N90 billion as July augmentation.

It has also become glaring that all the 36
state governors are not happy about the
piece rate system which the federal
government has resorted to in allocating
revenues due to them.
According to a northern governor, whose
state is said to be currently “been
grounded” due to insufficient allocation
from the federations account has
confirmed that most of the governors are
now “quite upset over the financial
distress imposed on us by the Federal
Government.”
The governor who is said to be one of the
strongest supporters of Jonathan is also
seriously fighting tooth and nail to meet
up with the financial obligations of his
administration.

He however spoke anonymously recently
revealing thus: “If urgent steps were not
taken by the Presidency to put an end to
the emerging financial crisis in the states,
more governors would be forced to
distance themselves from Aso Rock Villa
and the Finance Minister.
“We are afraid that if the current
situation, which we believe is artificially
created so as to punish some states and
their governors is not stopped, many
governors would be left with no option
than to seek redress.

“It is difficult for the Finance Minister to
convince us that after generating N1.05
trillion in July this year, a figure that was
well over the projection by government
for the month, states could not be paid
their full allocations for the month.
“As we speak, we have not been paid for
August and September while our people
are anxiously looking up to us as
governors to give them dividends of
democracy through provision of life-
changing projects.
“In almost all the states, the salaries and
emoluments of civil and public servants
have not been paid while contractors are
on edge waiting to do battle with the
governors.

“If we may ask, where has all the money
gone since Okonjo-Iweala keeps insisting
that the economy is robust and kicking?”,
he queried.
Although the G-7 comprising of the “rebel
governors of the Abubakar Baraje-led
New PDP” have already publicized their
displeasure that their governments are
experiencing financial stress while the
supporters of Jonathan due to loyalty, are
finding it hard to lay theirs bare in public
view.
Another governor from the South has also
lamented over the situation stating that
the financial position of his state is so bad
that he now avoids his office due to daily
throng of contractors who besiege his
office to ask for funds.
“I have no genuine excuse to give since
they won’t believe that for the past three
months we have not been given our full
remittances by the centre.

“This is what we have been exposed to by
the Federal Government even with
increased revenue confirmed by the
Central Bank of Nigeria accruing to the
purse of the government.
“Nigerians should be more vigilant by
asking the Finance Minister where our
money is being kept. Let them tell
Nigerians what happened to the balance
of the N1.05 trillion that accrued to
Nigeria after N792billion was shared to
states for July.
“We have made the point that it is either
they are hiding our money for 2015
elections or they are deliberately
manipulating the economy to give
Nigerians the impression that all is well
when the nation is broke.”
The Accountant-General of the Federation
(AGF), Jonah Otunla, called the Chairman
of Commissioners Forum to collect a
paltry sum of N75 billion released by the
Nigerian National Petroleum Corporation
(NNPC) out of the outstanding N466
billion of the state government
allocations.

The Federal Government, through the
AGF, was reported to have raised
N548.393 billion as the Statutory
Revenue for the three tiers of
government for August after it met tough
resistance from the state governments.
Most obviously, the President now risks
more opposition from some other
governors who are said to be on the
verge of an outburst after an internal
implosion when they can no longer
withstand the situation.

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