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.”
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.”
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