Udom Emmanuel
As the federating units in the country continue to grapple with the paucity of funds to take care of their recurrent and capital expenditures, the need to tackle the controversial issue of fiscal federalism is once again being brought to the fore.Stakeholders in Akwa Ibom State are questioning the rationale behind the allocation of a “paltry” N1.92 billion capital votes to the state from the 2016 Federal Government budget despite being one of the biggest contributors to the federal purse.
Described as the least from the federal capital votes for all the 36 states of the federation and the Federal Capital Territory (FCT) in the total budget outlay of N6.06 trillion, the budget for federal projects in Akwa-Ibom has raised a lot of dust in the state. Reacting to what they described as “Abuja’s gross insensitivity to Akwa-Ibom”, elders of the Peoples Democratic Party (PDP) under the aegis of the Akwa Ibom Vanguard wondered why a state that is laying the golden eggs should be so treated with levity in the allocation for capital projects.
Speaking on behalf of the group, Senator Anietie Okon argued that the state as the highest producer of crude oil in the country should have been treated with dignity. He questioned the yardstick that was used in arriving at such a paltry sum from the federal budget.
Giving further breakdown of the six geo-political zones in the country and the federal capital territory as seen in the 2016 approved budget, Senator Okon described it as a staggering contrast to the sum of N1.92 allocated to the state. He said, “Compared to the N209 billion allotted to the FCT for the execution of 662 capital projects, it is painful that only a meager sum of N1.92 was allocated to Akwa Ibom. Adamawa is allocated N5.98 billion; Borno and Gombe got N5.46 billion and N9.70 billion respectively while Nasarawa and Niger were allocated N12.59 billion and N14.75 billion.
“In fact, what is more surprising and confusing to most people of the state is the fact that out of the 36 states allocation, it is only Akwa Ibom that has the least of N1.92 billion, a fact that is calling for a lot of explanations on the rationale that was used in arriving at this sum.” To further drive home their call for re-examination of the allocation, Senator Okon presented zone-by-zone analysis of the allocation saying such would help Nigerians to give a fair judgment on the issue.
According to him, “In the North Central zone, FCT got N209 billion, Kwara State; N14.10 billion, Nasarawa State; N12.99 billion, Benue State; N7.26 billion, Plateau State; N6.63 billion and Niger State; N14.75 billion. “In the North West zone, Katsina State got N9.52 billion, Kano State; N32.14 billion, Jigawa State; N3.56 billion, Kebbi State; N3.15 billion, Sokoto State N2.97 billion, Zamfara State; N2.93 billion and Kaduna State; N19.32 billion. “In the North East zone, Adamawa State got N5.98 billion, Borno State; N5.46 billion, Gombe State; N9.70 billion, Taraba State; N9.32 billion, Bauchi State; N9.23 billion and Yobe State; N6.99 billion. “From the South West zone Lagos State got N16.14 billion, Oyo State; N12.28 billion, Osun State; N6.52billion, Ogun state N7.95billion, Ondo state N3.77 billion and Ekiti State; N2.32 billion. “In the South East zone Abia State got N6.93 billion, Anambra State; N3.02 billion, Enugu State; N10.15 billion, Ebonyi State; N4.63 billion and Imo State; N3.49 billion. While in the South-South zone, Akwa Ibom State got N1.92 billion, Cross River; N10.75 billion, Delta State; N7.55 billion, Edo State N4.58 billion, Bayelsa State; N3.27 billion, Rivers State; N7.29 billion.”
The group stated further, “Indeed, it is difficult to understand why states with no contribution to the federation account would be allocated greater sums of money for capital projects than Akwa Ibom state and other oil-producing states that contribute heavily to the revenue account.” And because of dwindling revenue that had become the lots of the states since the inception of the All Progressives Congress (APC) government at the centre, the state governor, Udom Emmanuel, has in the interim, appealed to President Muhammadu Buhari to refund the N142 billion debt it owed the state for the construction and rehabilitation of some federal roads in the state in the past eight years.

00laleyedavid:
Udom EmmanuelAs the federating units in the country continue to grapple with the paucity of funds to take care of their recurrent and capital expenditures, the need to tackle the controversial issue of fiscal federalism is once again being brought to the fore.Stakeholders in Akwa Ibom State are questioning the rationale behind the allocation of a “paltry” N1.92 billion capital votes to the state from the 2016 Federal Government budget despite being one of the biggest contributors to the federal purse. Described as the least from the federal capital votes for all the 36 states of the federation and the Federal Capital Territory (FCT) in the total budget outlay of N6.06 trillion, the budget for federal projects in Akwa-Ibom has raised a lot of dust in the state.[/qoute]

This is why fiscal federalism is needed instead of crying about being treated fairly. Let states keep their revenue and pay taxes to the federal government. Economic and politicial reform we need reform. My short list being land and mineral rights out of exclusive domain of federal government. This would give citezens access to royalty directly to oil, economic freedom.

[quote author=00laleyedavid post=51390040]
Giving further breakdown of the six geo-political zones in the country and the federal capital territory as seen in the 2016 approved budget, Senator Okon described it as a staggering contrast to the sum of N1.92 allocated to the state. He said, “Compared to the N209 billion allotted to the FCT for the execution of 662 capital projects, it is painful that only a meager sum of N1.92 was allocated to Akwa Ibom.

“In fact, what is more surprising and confusing to most people of the state is the fact that out of the 36 states allocation, it is only Akwa Ibom that has the least of N1.92 billion, a fact that is calling for a lot of explanations on the rationale that was used in arriving at this sum.”

Shouldn't the rationale be evident by the federal allocation formula? Instead of wailing about bring paid more raise arguements about it being bad system. The system rewards states for being lazy and unproductive. Since you receive it even if you don't produce an mineral revenue. I would argue this looking at coresponding IGR numbers. The northern states also generate least.

00laleyedavid:

“Indeed, it is difficult to understand why states with no contribution to the federation account would be allocated greater sums of money for capital projects than Akwa Ibom state and other oil-producing states that contribute heavily to the revenue account.” And because of dwindling revenue that had become the lots of the states since the inception of the All Progressives Congress (APC) government at the centre,

the state governor, Udom Emmanuel, has in the interim, appealed to President Muhammadu Buhari to refund the N142 billion debt it owed the state for the construction and rehabilitation of some federal roads in the state in the past eight years.

Lol that qoutes funny. These states are simply parasites. They have tons on mineral resources be sit on theor hands. They are mining all the minerals they're bless with.

The federal government seems to owe everybody money for roads maintenance. They might as well turn over the ownership to states. The federal government needs to reduce its responsibilities an allow States to do some of these functions.

My man space this article into paragraphs to make it easier to read.

Sorry my Microsoft phone was misbehaving

Blue3k:
My man space this article into paragraphs to make it easier to read.

Akwa-Ibom has one of the highest input into the federation account and should never receive less than a state like Niger with such a margin of 12 billion(Niger state) - 1.9 billion(Akwa-ibom)