…As Buhari laments inability of 24 states to pay salaries
[G]overnors of the 36 states of the federation have called for the review of the current revenue sharing formula between the federal government, states and local governments.
The governors who held a meeting with President Muhammadu Buhari on Thursday lamented the state of the economy and their inability to meet up with their responsibilities.
They therefore called for the increase in the allocation of revenue to the states.
Speaking to State House correspondents after the meeting, Zamfara state governor and chairman of the Nigeria Governors’ Forum, Abdulaziz Yari said the governors also demanded the payment of debts owed the states by Federal Government.
“The meeting was about the economy . We deliberated amongst our colleagues and we did say we would pass our demands to the federal government to look at demands per state. You will agree with me that states are the landlords, we own the land and the people, so therefore the economy of this country lies in the state. Everything comes from the state, the oil, agricultural produce, mining and people are in the states while the federal government is in Abuja. So therefore if any state has any issues and is known to Mr President, I doubt very much if he will be able to sleep with his two eyes closed.
We are closer to the people and have many challenges in the states. Today we have received support from the Federal Government in terms of bailout, restructured our debts, given us 15% of the Excess Crude Account for development.
All these are temporary measures. Each state has a programme right from short to mid and long term which we presented to Mr. President and he graciously accepted and he plans to put a committee in place that would look at the matter starting with short term.
For the short term we are looking at a situation whereby our debts that are hanging 2005 right from Obasanjo’s exit of the Paris club, some of the monies that were not paid so that the states that are having difficulties can get money from there,” the governor said.
He also disclosed the governors’ demand for 18 months oratorium before they start paying the debts they owe.
He continued: ” We are asking for 18 months moratorium before we can start paying, so that we would able to strategise. To develop IGR is not overnight, it is a long term programme that one has to plan for. And also our service have exploded and there is nothing we can do about it because people are getting their daily bread from there and we cannot say we are going to cut salaries and wages.
We have to find a solution otherwise we would keep going back and forth because you the plan you had for $100 per barrel and now oil is selling for 28 and 31, you will not achieve any thing.
So therefore we have devised a plan for short term, medium term and longterm.
Part of the medium term programme, we are looking at the revenue mobilisation formula in ensuring that recourses which were due for the past 10 years to states will be made available to them after the National Assembly approval while the agricultural and minining will be a long term programme.”
According to the governor, the committee that will be set up will have the Vice President, Minister of Power, Works and Housing Babatunde Fashola will be in that committee because he headed similar committee on revenue formula at the Nigeria Governors Forum between 2012 and 2013.
“At the same time, some states have committed their resources to some federal government projects like roads and airports, there is a committee that was set up to look into that, we are urging the committee to hasten and complete up their work and present to Mr. President so that states can get relief,” he said.
On the accusation credited to the Minister of Finance, Kemi Adeosun that state governors’ refusal to save for the rainy day was responsible for the present economic meltdown, Yari said “the states are only taking 26 per cent whereas the Federal Government is taking 52 per cent and you are asking us to save? Anyways I doubt if the minister made that statement. The truth remains that the states are taking 26 per cent and the Federal Government 52 per cent, what are they doing with the money? We are not sovereign so how can we save? We are dealing with our different states economy which we are trying our best to fix, most times we are busy shouting that what is supposed to be given to us has not been given. For the past three years we have been saying show us if the excess crude has been used judiciously or not. So the question of saving or not does not arise.
Meanwhile, President Buhari expressed concern that nearly two-thirds of states of the federation are still having difficulties with salary payments despite the bail-out funds provided to them by the Federal Government.
The President told the governors that he was very disturbed by the hardship which state government workers across the country and their families were facing due to the non-payment of salaries.
The President said that the Federal Government will strive to make more funds available to the states by expediting action on refunds due to them for the maintenance of federal roads and other expenses incurred on behalf of the Federal Government.
President Buhari also agreed that to establish an inter-ministerial committee to study a Fiscal Restructuring Plan for the Federation which was presented to him by the governors.
The President said that the committee will review the plan to improve the finances of state governments and make recommendations on how proposals in the plan should be dealt with by the Presidency, the Federal Executive Council and the National Assembly through legislation.
President Buhari urged the governors, however, to understand that while he was ready to do all within his powers to help the states overcome their current financial challenges, the Federal Government also has funding problems of its own to contend with.
“You all know the problems we have found ourselves in. You have to bear with us,” he told them.
