To make up for the shortfall in the total distributable revenue for March 2021 in Nigeria, an augmentation was made in the sum of N8.65 billion from the Forex Equalization Fund Account by the government.
This statement was made by the Chairman of the Progressives Governors Forum, PGF and the Kebbi state Governor Abubakar Atiku Bagudu in a press release.
Governor Bagudu stated this in response to the Edo state Governor, Godwin Obaseki who claimed that the federal government printed between N50 billion – N60 billion to bridge the shortfall in the distribution of federation revenues to the three tiers of government in Nigeria in March 2021.
Governor Bagudu said Governor Obaseki’s statement challenges the ability of both state and federal governments to manage finances.
“Given the significance of the statement from a sitting governor and the possible negative impact it has brought to the credibility of both the federal and State government in managing government finances, the Forum is obliged to put a statement out.
“To set the records clear and to the best of our knowledge, the total distributable statutory revenue for the month of March 2021 was N596.94 billion. Due to the shortfall in gross statutory revenues by N43.34 billion compared to the previous month, an augmentation was made in the sum of N8.65 billion from the Forex Equalization Fund Account, which brought the total distributable revenue to N605.59 billion.
“Federation revenues distributed monthly primarily consist of mineral revenues from the sale of oil and gas, as well as non-mineral revenues from customs and excise duties, company income tax, and value added tax” Bagudu said.
The PGF Chairman explained that the government has been offsetting fiscal shocks to the economy since 2008 from other savings services from the federation account such as distributions from the domestic excess crude proceeds and the foreign excess crude savings account.
He added that the federal government has supported all states regardless of political affiliation equitably with funds.
“Not only have we received budget support, bail out support to meet salary obligations and infrastructure refunds to all states, this was implemented in the overall public interest without discrimination on the basis of party affiliation. This is why it’s unfortunate and disingenuous to allege preferential treatment of APC states when PDP governed states are even greater beneficiaries of all the support.
“While the right to criticize and hold alternative views is acknowledged, all state governments have been equitably treated by both the Federal Government and national institutions, particularly the CBN. The support include, among others, bailouts, special interventions and various refunds that were owed to states prior to the Buhari administration,” the statement read.
“This unfortunate and inaccurate assertion by Governor Obaseki becomes even more worrisome when juxtaposed with the official statement released after the meeting of PDP Governors last week, calling for restructuring and greater devolution of powers to the States. It would appear that matters that require the collective resolve of all leaders are now being turned into purely partisan, point scoring claims.
“Every discerning Nigerian knows that the APC’s position on restructuring and devolution is clearly articulated and accurately captured in the report of Governor Nasir el-Rufai’s committee on True Federalism. And the APC Governors Forum has since made representation to NASS in furtherance of that position. However, since there are constitutional boundaries, we cannot usurp the responsibilities of the NASS on constitutional reform process, having made our position known” Bagudu added.
