breaking news
GOVERNORS have won their battle for more cash, with the President agreeing that the revenue allocation formula should be dumped for a new one.
After a “business-minded” session, President Goodluck Jonathan on Wednesday night backed the governors’ request to enable them pay the N18,000 minimum wage and address infrastructure.
The President and the governors also agreed to set up a committee to address the Sovereign Wealth Fund and its management.
Besides, the governors urged the President to prevail on the Nigerian National Petroleum Corporation (NNPC) to provide records of crude oil being sold and the proceeds.
According to sources, most governors at the meeting canvassed for the review of the revenue formula to be able to pay the N18,000 minimum wage and meet other socio-economic challenges that could lead to better infrastructure, promote job creation and enhance standard of living.
It was gathered that the governors took note of the fact that the last review of the revenue allocation formula was in 2002.
They claimed that the present formula is not equitable and could leave most states crippled.
The revenue allocation formula is: Federal Government (52%); States (26.72%); and 770 Local Government Areas (20.60%).
A committee raised by the Nigerian Governors Forum, headed by Lagos State Governor Babatunde Raji Fashola, has recommended a drastic reduction in the Federal Government’s allocation.
The governors are recommending this formula: Federal Government (35%); States (42%); and Local Governments (23%).
A source close to the Presidential Villa meeting said: “We were persistent in demanding for the review of the revenue allocation formula. We also submitted our proposed review to the President for his consideration and other relevant agencies.
“Armed with facts and figures, the President admitted that ‘the review is long overdue and it will be done.’ This assurance from the President gave us some hope.”
Another source at the meeting, however, said: “After the governors submitted their proposal on revenue formula to the President, he was non-committal on the percentage the Federal Government will concede to states and local governments.
“But he promised that the review may be early next year. That is still promising.”
Responding to a question, a third source said the governors sought to know the state of things in NNPC, especially the proceeds from crude oil sales.
The source added: “Governors are worried that the more oil prices rise per barrel, the more our reserve is depleted.
“They, therefore, persuaded Mr. President to compel the NNPC to make its records available so that we will know how many barrels of oil we are selling daily, the accruing revenue to the country, where the proceeds are kept and what goes into the Federation Account.”
A governor reportedly said: “We are after transparency in the oil sector because there is secrecy in how we manage our oil proceeds.
“The President told us that he has an audit report on NNPC and oil proceeds which he is willing to share with us. I think we may soon meet on the actual situation in the oil sector.
“We know that we have been benefiting from money made from oil, but as governors in a Federal system, we do not know how much the nation is making daily, monthly or per year.
“So, we cannot say whether we are actually getting our due or being shortchanged by those in charge.
“If we are fully in the picture of oil cash, we will appreciate when certain financial decisions are taken by the Federal Government.”
The Sovereign Wealth Fund and its management also came up at the session.
While some governors praised the spirit behind the Fund, others felt the principle of Federalism ought to apply to make it discretionary for states.
Another source said: “After arguments for and against, we agreed to raise a committee to look into all issues raised by the governors.
“The President and the Chairman of the Nigerian Governors Forum, Mr. Rotimi Amaechi, will constitute those who will serve on the committee.”



    The nation newspaper

God bless GEJ if he does this. The weaker the FG, the better.

I would suggest boosting the LGA share though. I think this 3rd tier of our democracy has been neglected for too long.

Am happy with this development.
The states need more money especially states whose governors are changing the infrastructural landscape of their states. Imagine more mone for Fashola, Sullivan Chime, Danbaba Suntai and Rotimi Amechi-they'll certainly further transform their states within the next years.
The wasteful FG is just there feeding 'fat cats' that sit here in Abuja and do practically nothing than loot.




kUDOS TO GEAJ!!

ak47mann:

Am happy with this development.
The states need more money especially states whose governors are changing the infrastructural landscape of their states. Imagine more mone for Fashola, Sullivan Chime, Danbaba Suntai and Rotimi Amechi-they'll certainly further transform their states within the next years.
The wasteful FG is just there feeding 'fat cats' that sit here in Abuja and do practically nothing than loot.




kUDOS TO GEAJ!!

yeah the states need more money to loot,so far therez not fight against corruption and respect for rule of law i dnt support this increase,these thugs in power will just have more money at their disposal

we dont even know how much oil we export.na wa o!

If GEJ does this, he would have done ALL that is necessary to fix things at the center. We would then wait for the thieving governors at the state level.

This should also be followed by state police because the Feds won't have enough money to pay the Police now. The states should equip and pay their own police formations in accordance with a provision in the constitution.

the feds should take care of the army and the diplomats, leave the rest to the states.

Sit down there dey fool una sefs say if revenue to d states is increased dey will work harder, or provide more infrastructure in their states, I will never believe dat one not in dis country of our never, those thieving people,no be for dis Nigeria, Wat do d LGA do!!! governors will give dem watever dey choose to give dem and d chairmen will embezzzzzle d rest,

let everybody result to this solution

read www.letter2president..com

It would be pretty suicidal and dumb if the FG accept such a formular. The local government councils deserved to be on par if not much more than the states. That is where the developments should be. Schools, streets, roads should normally be handled by the LGs.

Best news so far, this year.

Kudos to GEJ for this. That center needs to be weakened.

Agreed that the center must be made unactractive,but I would rather suggest this money goes to the local government instead.Development is more needed at that tier of government than the state.

GEJ till 2019

They should share the money based on zones and not states. Since the NW has a lopsided number of states compared to SE, it means they will always get more federal money

The transformation process of GEJ is commendable. It's not gonna be easy, but he will deliver

That means more states will buy more private jets for their governors?

ak47mann:


The President and the governors also agreed to set up a committee to address the Sovereign Wealth Fund and its management.
Besides, the governors urged the President to prevail on the Nigerian National Petroleum Corporation (NNPC) to provide records of crude oil being sold and the proceeds.

Why should they have to prevail on the NNPC to provide records of crude oil being sold & the proceeds?Is that some classified information?Shouldn't that be freely accessible?Na wa for Naij o!

Local Govt should be 5%. They don't do anything except loot and chase people for radio tax. Can anyone point to a road they have even patched? Redundant arm of govt.

Good development, GEJ speed up the transformation

, Local Govt should be 5%. They don't do anything except loot and chase people for radio tax. Can anyone point to a road they have even patched? Redundant arm of govt.



this girl 2 funny

nice one

I support this!

naijaking1:

They should share the money based on zones and not states. Since the NW has a lopsided number of states compared to SE, it means they will always get more federal money

I agree with this. Zones should decide for themselves how many states they want. . . the money the zone gets should be independent of the # of states.

A welcomed development in all ramifications.

Ozin:

Agreed that the center must be made unactractive,but I would rather suggest this money goes to the local government instead.Development is more needed at that tier of government than the state.

That's the best formula. Local govts should be made attractive enough to bring in the best minds. The grass roots people are the real Nigerians, they're the ones toiling day and night and not reaping the fruits of their labour. With a little enlightenment and a few amendments here and there, this could really work.

owobokiri:

That means more states will buy more private jets for their governors?

just what i was thinking

I have not see those that always scream Odechukwu, did they travel for weekend?

amarilo:

I have not see those that always scream Odechukwu, did they travel for weekend?

Odechukwu is a pet name, Even if he does good, Odechukwu Ademumu Abdulclueless Retardeen remains his names,

People give their leaders names all over the world. It psychologically helps!!!

amarilo:

I have not see those that always scream Odechukwu, did they travel for weekend?

Its good news, they cant be here

state na thiefs,i think the local govt deserves a higher percentage coz they are the only one that touches the grassroot where most of the development are needed, all we should ask for is their commitment!

We need to be careful here. I may be wrong but personally I think increasing the allocation to States may be risky considering the antecedents of past State Governors.

A revenue allocation formula which is based on population is useless. The only revenue allocation formula of interest to me is one based on contribution.

^^^^
That will solve many of Nigeria's problems

Yes we need New Revenue Formula.

Goodluck Jonathan should also remember that he need what people will count as achievement (physical) during his presidency.