- Is Your Governor Telling You the Truth About Cash-Inflow?
By Hamilton Nwosa(Head, The New Diplomat Business and data tracking desk)
The Fiscal Responsibility Commission (FRC) has revealed the total net revenue of the 36 states and Federal Capital Territory (FCT) at N2.57 trillion excluding Internally Generated Revenue (IGR) by various States and the FCT.
Mr Victor Muruako, the Acting Chairman, FRC, who disclosed this in the 2018 Annual Report and Audited Accounts of the commission and made available to News Agency of Nigeria in Abuja said the report is to create awareness among citizens so that Nigerians and citizens would be aware of how much is available to various States, and the FCT from the FAAC, for developmental purposes.
According to him, this would help citizens ask the appropriate question, and a demonstration of transparency on the part of the Federal government.
Muruako said that Delta had the highest total net allocation or receipt of N213.63 billion and it accounted for 8.32 per cent of the total net revenue of the 36 states and FCT.
He also said that Akwa-Ibom was second with N202.37 billion accounting for 7.88 per cent of the total net revenue or allocation in the year under review.
He said that Rivers ranked third with total net revenue of N172.63 billion or 6.72 per cent of the total net revenue of the 36 states and FCT in 2018.
“Bayelsa which ranked fourth had total net revenue of N153.11 billion representing 5.96 per cent of the total net revenue of all the states and FCT.”
According to him, the forgoing analysis shows that Delta, Akwa-Ibom, Rivers and Bayelsa states which recorded the highest total net revenue in 2018 are all oil producing states that enjoy the statutory 13 per cent crude oil derivation.
He said obviously, this must have contributed to their respective total net revenue in relation to the other states.
“Lagos State accounted for the fifth largest total net revenue in 2018 with N119.02 billion representing 4.64 per cent of the total net revenue of the 36 states and FCT.”
The acting chairman attributed the high revenue level of Lagos State in 2018 to the Value Added Tax (VAT) revenue generated by the state.
Muruako also said that Osun recorded the least total net revenue of N22.84 billion representing 0.89 per cent of the total net revenue for all the states and FCT in 2018.
He said that the low net revenue of Osun was due to the loan deduction at source from her gross statutory revenue.
He, however, said that an analysis of financial receipts or allocations accruing to the respective state governments was required to ascertain the states with relative high funds for developmental purpose and those with comparative low total net revenue in 2018.
“The revenue profile of the states is necessary for comparison with their respective debt balances to determine their sustainability.
“It is instructive that the information above excludes the Internally Generated Revenue (IGR) of the states,” he added.
Dr Peter Adeyemi, a development economist said with this revelations, the citizens of various States of the Federation can begin to ask their governors questions as to what they did with the” States funds and huge receipts from the Federation Account.”
He said: “With information now available, nobody has a hiding place again. Take the States from the Niger Delta region, for example, I think the Citizens would now demand greater accountability from their governors on what they did with these huge allocations. We would also know why a State like Osun cannot perform any miracle because its receiptsfrom the Federation Account is most low…So citizens are being empowered by the Federal government to demand accountability. This raises the question: Is your governor telling you the truth about how much he is receiving from FAAC and what he or she is doing with the funds?’’
