40% reduction in Osun’s federal allocation unjustifiable – Aregbesola

APRIL 18, 2014 BY ADE ADESOMOJU
   
 

Governor Rauf Aregbesola of Osun State has described as unjustifiable a 40 per cent reduction in the federal allocation being received by the state since July 2013.
Aregbesola spoke in Lagos on Thursday during the launching of a book, ‘Yoruba Elites and Ethnic Politics in Nigeria: Obafemi Awolowo and Corporate Agency.’ The book was written by an associate professor at the University of California-Davies, Wale Adebanwi.
The governor said the reduction had no basis as the nation’s oil revenue did not fall.
He said, “If there is anything my state does not have now, it’s money. We are managing with 40 per cent reduction in our allocation from the Federal Government. It is not as if I even enjoy saying I depend on the federal allocation, but the truth is that there is no magic that I would have made to suddenly taken our state out of  dependence on the federal allocation.
“It is important for us to know that there is no justification for that 40 per cent reduction in our allocation. The price of crude oil has remained almost the same at $108 per barrel, and the benchmark, according to them, is $75 per barrel.”
According to the governor, the state is now being forced to source for funds outside the federal allocation in order to meet its responsibilities of paying the entitlements of civil servants and retired workers.
He said, “So we are not close to the benchmark of $75 and yet since July of last year, there is a 40 per cent reduction in our allocation.  What that translates to I will tell you.
“It means I have to get N5.4bn to augment salaries and pension from July to December; N5.4bn extra, outside allocation, to ensure that since civil servants who are still active and those who have retired are paid their entitlements.
“What I receive from federation account is not sufficient to pay salaries.”
The governor, who represented a former governor of Lagos State and National Leader of the APC at the event, Bola Tinubu, who was the chief presenter of the book, bought copies of the new book at N5m on behalf of the Osun State.
He bought copies of the book  on behalf of himself with N500,000 and announced N2m for the launching of the book on behalf of Tinubu.

obongproff:
Madam u guys are just talking bullsh.it. When we were shouting dat shale oil increase will soon affect ur crude oil price u guys wont listen becos u were busy stealing. Bullsh.it!

Until u cut down d salary of dose bastard lawmakers and their foolish sitting allowance, scrap constituency projects, reduce stupid consumption in aso rock and all dat, den u guys are all fuccking sick, selfish bastards!

Idiots! :@

obongproff:
Madam u guys are just talking bullsh.it. When we were shouting dat shale oil increase will soon affect ur crude oil price u guys wont listen becos u were busy stealing. Bullsh.it!

Until u cut down d salary of dose bastard lawmakers and their foolish sitting allowance, scrap constituency projects, reduce stupid consumption in aso rock and all dat, den u guys are all fuccking sick, selfish bastards!

Idiots! :@

obongproff:
Madam u guys are just talking bullsh.it. When we were shouting dat shale oil increase will soon affect ur crude oil price u guys wont listen becos u were busy stealing. Bullsh.it!

Until u cut down d salary of dose bastard lawmakers and their foolish sitting allowance, scrap constituency projects, reduce stupid consumption in aso rock and all dat, den u guys are all fuccking sick, selfish bastards!

Idiots! :@

jpphilips:
Blame it on state Governors, quite convenient for you. The ECR account was only accessible to the Federal govt a breach of section 62 or so of the constitution, Iweala, you went to court and saw that it will be impossible to win and opted to settle out of court in an agreement to share it in accordance with the supreme court sharing formula.
Madam Iweala, the FG cut in the sharing was the supposed sovereign wealth fund of $1b, immediately after elections, the SWF, ECR and foreign reserve were depleted, who did that? state Governors?

Again, in January 2012, there was no money to pay subsidy reason it was removed in the first place, did you explain it to Nigerians that way?
Did you tell them that ECR was used to pay subsidy in the OBJ administration which you served, other than sending Sanusi the Mickey mouse to be bamboozling Nigerians with how our population is so large that we can no longer enjoy our oil wealth?

You said you are increasing the FIRS receipt by 50% in 2015 for luxury goods, did you release a communique as regards goods that fall into the luxury category? as usual, disgruntled Nigerians are jubiliating that there is no cause for alarm, little did they know that increased FIRS receipt means increased taxation, exactly how they didn't interpret subsidy removal with increase in pump price?

When the state Govs were benefiting from the ECR, you were still the person approving foreign loans for them to squander, in other words, you pay federal allocation, pay their share of ECR and go ahead to guarantee foreign loans for them, who are you fooling?

Iweala, you are just an over rated incompetent mofo doing a great dis service to this country.

theM16:


She is a blatant liar. I always knew that from when she started forming like she was doing us a big favor by being a minister cos she left world bank. Bullshit. How much she dey earn for world bank wey she no go allow us hear word. Opportunists everywhere

As usual Nigerians are already falling for her nonsense, during the NSE annual conference, she claimed that a recurrent expenditure of 77% accrued to govt spending is unsustainable, but when she wanted to proffer solution to budget deficit she said, she will increase taxation, now a cut in house of assembly and ministerial allowance will float the economy faster than increasing taxes especially at the sea ports, where importers will seek Cotonou as a more viable alternative.

She claimed that the reason she is paying half subsidy in 2015 is because oil price has dropped as well as the landing cost, but it doesn't bother her that the pump price remains 97naira against all favorable odds?
If the cost of purchase is low, logistics is low as such subsidy is low, why is the pump price still high, some say it is not deregulated, but our deregulated AGO speak otherwise of that position.

Since Diesel is deregulated, I expected a sharp drop in price of diesel with fall in crude prices, but then when the Govt dont pay subsidy and probably tax the products at point of entry, the importer just sums it up at the pumps, the resultant effect to the end user is outrageous while the Govt pretends to be saving money.

Nigerians need to know that Deregulation of the downstream sector as enshrined in the PIB makes money for the Govt through their pockets but the majority of m0r0ns running the streets of Nigeria think otherwise.

When oil prices was high for over 4yrs, the Naira never appreciated, but each CBN governor was deluding himself that he is keeping the naira stable, if the ECR is shared and stolen, foreign reserve is stolen as well, Iweala's common sense should tell her to appreciate the naira
that will leave less money in the hands of the thieves.

why in less than a month of this oil crisis Nigeria is facing austerity measures if the reserves have not been stolen?

Vote your choice of candidate but if you return this govt of poverty with your vote, God will return serious poverty in your families not even tithe will save you this time. what is so special about mediocrity and incompetence in governance?

obongproff:
Madam u guys are just talking bullsh.it. When we were shouting dat shale oil increase will soon affect ur crude oil price u guys wont listen becos u were busy stealing. Bullsh.it!

Until u cut down d salary of dose bastard lawmakers and their foolish sitting allowance, scrap constituency projects, reduce stupid consumption in aso rock and all dat, den u guys are all fuccking sick, selfish bastards!

Idiots! :@

jpphilips:


You said you are increasing the FIRS receipt by 50% in 2015 for luxury goods, did you release a communique as regards goods that fall into the luxury category? as usual, disgruntled Nigerians are jubiliating that there is no cause for alarm, little did they know that increased FIRS receipt means increased taxation, exactly how they didn't interpret subsidy removal with increase in pump price?

since1914:


That is not even the problem, because, most Nigerians have no problem with paying more taxes. The only problem they have is when the taxes paid are mismanaged. In fact I have always said that if we paid more taxes in Nigeria, people will be less tolerant of corrupt public officials. Just imagine paying 40,000 Naira out of your 100,000 Naira monthly salary, as taxes. You won't go home quietly if any part of that sum is embezzled by any man, we would visit him at home and lynch him publicly. If government increases taxes and we no longer need to buy fuel for our generators because of constant electricity, or if it leads to good and affordable healthcare, then that is progress. Unfortunately, there is no sign that, that will be the case if we agree to pay more taxes.

Before we even talk of increasing taxes we need to take a holistic look at the current tax system and administration in the country. Casual observation shows that we still haven't even exhausted all the avenues of taxation in this country, because there are so many people that are yet to be brought under the tax net. Secondly there is also a lot of leakages in the tax system. The level of corruption at the FIRS is staggering. Most tax officials are living far above their means, this by the way is not a speculation-am speaking from first-hand experience. Tax officials are conniving with tax payers and multinational companies to defraud the government, they are renegotiating tax rates and outrightly grants waivers upon receipt of kickbacks.

The Finance Minister needs to rise up to the ocassion rather than dish out blames, we have long gone past that stage. Now is the time to regain the trust of Nigerians. For a start, now is a golden opportunity for the government to convince the masses about total subsidy removal. Now that the international oil prices have dropped significantly, government should either reduce the pump price of fuel or admit publicly that she is spending a lot less on subsidy now. Which means that we should still have unspent subsidy money in this year's budget.

jpphilips:



I don't know about you but saying Nigerians don't pay reasonable tax, is either you have a low paying job or you don't do business in Nigeria.
Ask the guys who import cars from the US how much they clear a car bought barely $3,000 from the US, what do you think duty is?
I agree with you that people will be less tolerant when they pay higher taxes, but the biggest weapon of corruption "HUNGER" has been flogging Nigerians since 1960, what have they done?
A job that hunger could not do, how do you think increased taxation will fare? bros, they will go home in penury give the change to their pastors and sleep, Nigerians are less humans.

Slonge2:
Is this woman insinuating that the state government is now more powerful than the federal government? It is really appalling that out of gross incompetence, blatant carelessness and lack of foresight, she couldn't envisage the impeding crisis we are now suffering, even with the plethora of tell signs that should have made us better prepared for this crisis. she totally failed in her capacity as the finance minister and is now shamelessly trying to transfer the blame to the state gorvernors, instead of charting out a course through which we can mitigate the effects of the plummeting oil price and work in synergy with the governors to raise IGR and by effect lessen the burden on the ECA.

This woman has been a flop and a massive fiasco in this her second term under GEJ. I am totally bewidered that even with her pedigree she has successfully failed so massively.