Saturday, May 16, 2015

Tougher times ahead as states share N388.3billion, lowest allocation in 10 months

Tougher times loom for states and local governments in the country as the Federation Account Allocation Committee (FAAC) yesterday announced N388.339 billion as the sum due to the three tiers of government for April 2015.

The said sum is a far cry from the the N435.061 billion shared among the three tiers of government the previous month, raising fears that the decrepit financial situations in states and local governments may worsen. Already, some states are unable to pay workers’ salaries.

Before now, the three tiers of government had lamented sharing around N560 billion mid last year when the slump in the price of oil in the international market began.

Assuming that the N388.339 billion is pro-rated among the state governments and the Federal Capital Territory to the exclusion of federal and local governments (which is impossible), each of them will receive on the average a paltry N10.495 billion to meet all their financial obligations for May 2015.

The states and local governments have also denied knowledge of any remittance of the sum of $1.48 billion the auditing firm, PricewaterhouseCoopers, instructed the Nigerian National Petroleum Corporation (NNPC) to pay into the federation account.

Addressing journalists at the April Federation Account Allocation Committee (FAAC) meeting on Friday, the Chairman of Commissioners of Finance forum, Barrister Timothy Odaah, said the states were not aware of any such remittance from the NNPC.

“Mr. President has directed that the money be paid into the federation account, same also as the Minister of Petroleum, but it is important to note that we have not seen anything,” he said.

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