Nigeria’s state governments have requested an extra $2 billion in federal money to cover shortfalls caused by falling global oil prices, an official said Wednesday, highlighting the severity of the country’s revenue crunch.
A panel of finance commissioners representing all 36 states has asked that the money be dispersed by mid-December, saying that without the funds governments may fail to pay salaries and meet contract obligations.
Fully funding security measures before general elections in February next year could also be jeopardised, said Timothy Odaah, the chairman of the States’ Commissioners of Finance Forum.
“This amount of money is needed for state governments to complete their expected obligations,” he told AFP.
“It is a request that we wish Mr President (Goodluck Jonathan) will accomplish,” he added, saying that all state government unanimously agreed on the need.
The panel asked that the funds be released from the oil savings account, which experts say has been depleted over years due to persistent budget shortfalls caused by widespread graft.
Finance Minister Ngozi Okonjo-Iweala said at the weekend that Nigeria was facing “serious challenges” because of the oil price slide and announced special measures to help cope with the falling government revenues.
They include a cutback on foreign travel for government workers and new taxes on luxury items.
The US boom in oil extracted from shale rock has helped create a global supply glut and lower prices.
Nigeria’s main crude product has been trading at $79 per barrel, down from above $100 just two months ago, with oil exports accounting for 70 percent of government revenue.
Odaah echoed a call from analysts for Nigeria to aggressively diversify its economy to make the country less vulnerable to market shocks.
“It is a clarion call for us to reduce our dependence on oil,” he said and argued that state government programmes must be prioritised because they are most effective in targeting job creating sectors such as agriculture.
A cash crunch before general elections was also dangerous, Odaah added, because “political activity engenders some insecurity” and states need funds now to make preparations.
Nigeria has a complex and fiercely debated system of sharing federal money — including oil revenue — among its states, which is driven by population and other factors.
Odaah said that if approved, the extra $2 billion (1.6 billion euros) will be distributed using that mode

- See more at: http://www.vanguardngr.com/2014/11/states-ask-extra-2-billion-amid-revenue-crunch/#sthash.5OXbXZ0g.dpuf

And the poverty continues.

Ask your state government what they have been doing with the funds they get from FG. Nigerians are crazy not to ask

atlwireles:
And the poverty continues.

If you take a look at the States asking for this money, all SW States would be among.

What are the contributions from states to the federal purse nada i say.

Francis5:


If you take a look at the States asking for this money, all SW States would be among.

why should they not be among if i may ask?

The south west and northern states are parasites

You want power but you bring nothing to the table. Who is fooling who

bombay:
What are the contributions from states to the federal purse nada i say.

nigeria is not structured that way

bombay:
The south west and northern states are parasites

Oh ye fool, after the SS states, the SW states comes 2nd in terms of contribution to the revenue.

I love Nigeria, a country of chest beaters. Let me go watch my game.

so the states live from hand to mouth?
suppose the federal government had not been withholding some money as emergency funds?

if the federal government can set up some savings fund like the soverign wealth fund,
wy couldnt the governors, especally the progressive governrs like Fashola, Aregbesola and Amaechi, save for the rainy day?

Governments of the 36 states in the federation have requested to withdraw $2 billion from the country’s $4.11 billion oil savings account to complete projects and provide security ahead of February polls, Timothy Odaah, the chairman of the States’ Commissioners of Finance Forum, said on Wednesday.

Revenues to be distributed to the country’s three tiers of government in October – federal, state and local – were N593.33 billion, down from N603.5 billion in September, Accountant General Jonah Otunla said.

Central government revenues rose to N536.69 billion in October, up 6.9 percent from September owing to improvements in crude revenues, despite a sharp fall in global oil prices, Otunla also said.

http://businessdayonline.com/2014/11/states-seek-2-billion-from-oil-account-for-projects



Look at the big lie from hell. Complete project before feb 2015 . The drop in oil prices is a blessing in disguise.

Look at them defending trash Nigerian states are parasites.

This hard times will help to show state governors who are really good managers and productive...let them keep begging from fg...its same people who fought the fg savings...now they want it...

asha80:
why should they not be among if i may ask?

Read me again: they would be among, in fact, in the fore front.

Oil is the only thing they know of.

Ask Aregbe https://www.nairaland.com/2004907/aregbe-admitted-he-cant-manage#28152005

Osun accuses FG of secretly funding PDP states

http://www.punchng.com/news/osun-accuses-fg-of-secretly-funding-pdp-states


See what crude oil dey cause for one Nigeria.

The Commissioner for Information in Osun State, Mr. Sunday Akere, has accused the Federal Government of secretly funding states under the control of the Peoples Democratic Party.
Akere said this in a statement made available to our correspondent in Osogbo on Wednesday.
He described this as double standard and an attempt to punish states which were under the control of the opoosition party.
While defending the inability of the state government to pay its workforce, the commissioner said that this was due to the steady decline in the allocation accruing to the state from the federal allocation.
He debunked the rumour that the huge debt profile of the state was the reason for its inability to pay workers’ salaries.
The commissioner added that Osun State was not the only state in the federation which was being affected by the paucity of fund.
He said, “It is unfortunate that one do not know the criterion that is used in sharing the revenue allocation these days because our state is now at number 36 on the table.
“We are aware the Federal Government said there is reduction in revenue accruable to the Federation Account, but we are also aware that the Federal Government funds some PDP states secretly through the back door at the expense of the states governed by the opposition parties.
“The reduction in the state allocation was not due to any debt profile. Federal Government did not single out Osun alone as been insinuated by the disgruntled elements, but as a result of what the Federal Government itself described as reduction in the Federal Revenue Allocation due to oil theft in the Niger Delta.
“Those who go around spreading false information are determined to set workers against the state government. The State of Osun is on number 36 on the revenue allocation sharing table.
“Even at this, there are several PDP states that have not been able to pay their workers salary regularly again since July2013 when the downward trend began with some owing between seven to eleven months salary while despite the politicking, we are still able to pay our workers up till September salary.”
Akere appealed to workers in the state for understanding for the time being, saying the situation would soon improve and normalcy would return to the system.

Which money are they talking about? Had it been gej listen to fashola and ameachi that he should share the money what would they have been saying.

Tomorrow u'll see a new thread here, which will b opened by apc e-morons, on how gej could not sustain d ECA n even accuse him of stealing it. Well I'll still not b surprise bc their anthem is lie n more lies.

When Okonjo iweala was asking them to peg the estimated oil price for 2014 budget @ $72 per barrel or there about they were calling her names and the house committe on finance set 50 "jamb" Questions for her thinking they are punishing her and by their resolution they forcefully fixed the the estimated price for $79 per barrel with the happening in the World economy we can clearly see who is right .

Whether you like it or not, we in the SW will keep choping the oil money till oil becomes utterly valueless. Then we will revert to our cocoa or the plethora of solid minerals abundant in our land.


ND oil rocks.