Olalekan Adetayo, Tunde Oyekola, John Charles, Olaide Oyelude, Dennis Naku and Adeyinka Adedipe


Low revenue accruing to state governments monthly from the Federation Account Allocation Committee is forcing the sub nationals to renew their calls for the removal of fuel subsidy, The PUNCH reports.

They are also introducing strategies to increase their Internally Generated Revenue.

For instance, the Cross River State Government last week received only about 15 per cent of its statutory allocation from the Federation Account for March. Figures released showed that out of the state’s gross allocation of N2.22bn, only N34.9m was received as N2.18bn was deducted to service debts incurred by previous administrations.

The PUNCH’s investigation revealed that the issue of low allocation was common to many of the states, making it difficult for them to continue to meet their financial obligations.


Let state decide whether to continue with subsidy – Ekiti

The Ekiti State Government told The PUNCH that it restructured its expenses ahead of the shortfall in revenue being experienced.

The state Commissioner for Finance and Economic Development, Mr Akintunde Oyebode, in an interview with one of our correspondents, disclosed that the state got N2.8bn, inclusive of Value Added Tax, from FAAC in March.

He admitted that the shortfall would have an impact on the state’s ability to embark on new projects.

When asked about the other avenues the state was looking into to generate more revenue, he said, “We are deepening the IGR, and we have digitised our tax system and are also ready to launch our long-awaited GIS solution for land administration.”

Oyebode justified the calls for the removal of fuel subsidy when asked if states would reopen the agitation for its removal.

He said, “The agitation was never rested. Our view is that it is against any sense of federalism for Ekiti, which consumes 0.55 per cent of trucked petrol, to pay over two per cent of the subsidy cost.

“We also believe that states should be given the right to determine if they want to participate in the subsidy of petrol products or not, depending on the fiscal position and priority of each state.”


Our IGR to increase by 50% in six months – Imo

The Imo State Government said it had introduced measures to increase the IGR as a way of increasing its revenue to meet its financial obligations.

The state Commissioner for Information, Declan Ewelumba, told The PUNCH that the state government had automated its revenue service to ensure that all funds due to the state get to the government’s purse, adding that “the target is that the state would have been able to increase its IGR with more than 50 per cent in the next six months.”

When asked if the state will support the removal of fuel subsidy as a way of increasing allocation to states, Ewelumba said the government would abide by the decision of the Federal Government on the matter provided that such would not increase the hardship of the people.


Allocation too meagre to pay salaries, but we’ve never defaulted, says Osun

The Osun State Government admitted that its allocation was too meagre to pay salaries and pensions.

It, however, said because of the creativity it adopted, it had never defaulted in the payment of salaries and pensions.

The Chief Press Secretary to the Governor, Ismail Omipidan, disclosed this in an interview with The PUNCH.

Omipidan disclosed that the state received N177,812,228.90 as allocation for March, describing it as “an improvement from the last one, which was negative N375m.”

The governor’s spokesman said, “Creativity is the word; we just look at where we are and where we want to be and look at the gaps and creatively plan things to take care of those gaps. I think that is the only way one can explain what we are trying to do.

“My principal has been able to block leakages, while setting our priorities right. We don’t spend frivolously. This is why even when the allocation is a far cry from what we need to pay salaries and pensions, we have never defaulted.”

Although Omipidan declined comment on whether states will revisit their call for the removal of subsidy to shore up allocations, a top government official who did not want his name in print, said, “Collectively, I am not sure their (governors’) position has changed on the issue of withdrawal of subsidy.”

The Kwara State Ministry of Finance said the government received a total inflow of N2,886,631,784.67 as federal allocation for March.

Though the March allocation figure is higher by N291,079,653.10 when compared with that of February, it still represents a downward trend in revenue.

The state Commissioner for Communication, Mr Olabode Towoju, said though the allocation was below expectation, the state had fulfilled its obligation by paying workers their full salaries even in March.


We borrow to pay salaries, says Ortom

Benue State Governor, Samuel Ortom, said federal allocation to the state had shrunk, adding that states that received meagre allocations in March must borrow to meet their obligations.

Ortom, who was reacting to the low allocation for the month of March, said states of the federation had for some time now been experiencing a drop in allocations.

He said in some cases, his administration had to resort to borrowing to pay salaries, adding that his administration placed priority on the payment of salary.

“Since 2018, we have been paying salaries up to date and our intention is to continue to pay and to source for funds to carry out capital projects,” he said.


Rivers blames low revenue allocation on economy

The Rivers State Commissioner for Finance, Isaac Kamalu, attributed the drop in allocation for March to poor economy.

“But everybody understands the nature of the economy; the allocation for the month of March was very low,” he said.


Our monthly allocation low – Edo

The Special Adviser to the Edo State Governor on Media, Crusoe Osagie, said although he did not know the exact allocation the state got in March, it would be low just like other states experienced.

He, however, said the state government did not rely on federal allocations to take care of expenditures.

“We manage our resources in such a way that we don’t have to rely on federal allocations. We make arrangements in such a way that our expenditure, like salaries and pension, are taken care of by the IGR,” he said.


No access to Zamfara’s accounts

The PUNCH gathered that the Zamfara State Government currently did not have access to its accounts.

Sources attributed this to the ongoing legal tussle between the state government and ex-council chairmen and councillors over alleged unpaid accrued salaries and allowances.

The state Commissioner for Finance, Alkasim Mutalab, could not be reached for comments.

https://punchng.com/cash-strapped-states-groan-widen-tax-net-begin-aggressive-revenue-generation/

lalasticlala

And taxing the starving masses is now the solution?

This same govt says goodluck Jonathan was doing well because oil was selling above 100 dollars per barrel

Now they're equally selling the same oil above 100 dollars per barrel as they still borrow to do everything, which way my people?

How can a state be borrowing to pay salary of the workers? And for how could this continue and when are they planning to pay back?

THIS COUNTRY IS SO FUNNY

Nigeria as it is now will never remain the same in 15 years to come


Something must give in, terrorism, humongous corruption, states unable to pay salaries.

Structural evaluation of the federation to devolve power or this entity will cave in. Unless a full scale revolution that starts on twitter, takes up the government and leads ably.

If it’s for things to continue this way, not more than 20 years something will happen. Changed laws, balkanization or revolution.

[s]

hisgrace090:
And taxing the starving masses is now the solution?

This same govt says goodluck Jonathan was doing well because oil was selling above 100 dollars per barrel

Now they're equally selling the same oil above 100 dollars per barrel as they still borrow to do everything, which way my people?

[/s]
Cash-strapped states, that's the topic and that's what the report talked about. But somehow, you have left the states and concentrated on the Federal govt.

Always learn to channel your grievances to the appropriate quarters so your proposed online country can have some semblance of sanity when it finally come to reality.

Islie:


https://punchng.com/cash-strapped-states-groan-widen-tax-net-begin-aggressive-revenue-generation/

lalasticlala

useless cbn Governor barawo

States are supposed to be self funding. This is just an example of the ridiculous way Nigeria operates. All States should look inwards, a good starting point would be to cancel the jumbo pensions some States pay ex governors

LeoDeKing:
[s][/s]
Cash-strapped states, that's the topic and that's what the report talked about. But somehow, you have left the states and concentrated on the Federal govt.

Always learn to channel your grievances to the appropriate quarters so your proposed online country can have some semblance of sanity when it finally come to reality.

Cash strapped states because the federal government slashed their IGR to service debts.

Nigeria is becoming a fail and dystopian society

So the 70% below poverty line is where the state want to tax?

Wait oooo..

Is the Government this insensitive?

Removing Subsidy at this material time is digging the grave of the common man.


Diesel that sold less than #350 in January This year is selling at over #800 today and all prices are up already.

As it's today, we already have Hyper-Inflation in the country.

Removing Subsidy would drive prices further up and it would be double wahala for deadi-body and the owner of deadi-body..

Hyper-hyper-inflation loading..


Let govt just dig Mass Graves before removing Subsidy...

The truth is that some states are not meant to be states, how can you depend on federal government to pay staff salaries?

As far as I'm concerned any state that cannot generate its own IGR to take care of itself...should be dissolved and merged with other states....High time we stop all this expensive form of non-performing governance..

hisgrace090:
And taxing the starving masses is now the solution?

This same govt says goodluck Jonathan was doing well because oil was selling above 100 dollars per barrel

Now they're equally selling the same oil above 100 dollars per barrel as they still borrow to do everything, which way my people?

Spot on. My real Niggar

The Oil and Gas IOCs are leaving Nigeria. Oil production is dropping significantly and 93% of the revenue is being used to service debt.

I pity whoever is taking over from Buhari.

Nigeria is finished completely....... no allocations to share

Dialpad:
The truth is that some states are not meant to be states, how can you depend on federal government to pay staff salaries?

It is the way Nigeria was created. Consolidate all revenue sources to the center and strip everyone else off the power to control resources. It's the monster they made.



https://www.youtube.com/watch?v=lRpBLAwIbeA

Why not generate funds by reducing the salaries of the president, governors, senators and judiciary. Let all of them be earning 50k each month. That would go a long way

What is essence of creating states if not for vast development and move government closer to people. But all these states are not developed talkless of sustaining themselves for all these years hence they all depend on Fed allocation and borrowing to run the states without the zeal to be self reliance

That makes no sense

JetStar:


It is the way Nigeria was created. Consolidate all revenue sources to the center and strip everyone else off the power to control resources. It's the monster they made.



https://www.youtube.com/watch?v=lRpBLAwIbeA

LeoDeKing:
[s][/s]
Cash-strapped states, that's the topic and that's what the report talked about. But somehow, you have left the states and concentrated on the Federal govt.

Always learn to channel your grievances to the appropriate quarters so your proposed online country can have some semblance of sanity when it finally come to reality.

Peeps like that are the problem, shameless state’s because FG’s monthly pocket money is low, they cannot pay Salaries, even that useless Ortom must be amongst them?