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George Oshogwe Ogbolu
Guest
Bauchi State Governor Bala Mohammed has criticized the lack of benefits state governments are receiving from the increased revenues generated by the oil sector, citing improper remittances to the Federation Account.
Mohammed, the Chairman of the Peoples Democratic Party (PDP) Governors Forum, urged the Federal Government to clarify why collected revenues are not being fully remitted for distribution among the three tiers of government, as required by law.
His comments came during a courtesy visit by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the Bauchi State Government House, ahead of the 2024 Conference for the National Council on Finance and Economic Development.
The governor expressed concerns about the ongoing challenges, describing it as “miraculous” that states have yet to benefit from the oil sector despite Nigeria being a major oil producer.
He emphasized the need for transparency and inclusion, urging the Federal Government to enhance productivity in the oil and gas sector and ensure generated revenues are deposited into the national treasury for equitable distribution.
NNPCL, a key revenue generator for the country, has faced scrutiny over its remittances. In recent years, the company attributed its inability to remit funds to the Federation Account to fuel subsidy payments on Premium Motor Spirit. For instance, in 2022, the NNPCL did not contribute any funds to the Federation Account.
However, the removal of the fuel subsidy appears to have changed the narrative. According to the company’s former Chief Financial Officer, Umar Ajiya, the removal of the subsidy has enabled the NNPCL to start contributing to the Federation Account again.
The company reportedly contributed N4.5 trillion in nine months in 2023 and an additional N431.06 billion in the first seven months of 2024.
Despite these contributions, stakeholders have expected improved disbursements following the removal of subsidies, which resulted in a significant rise in petrol prices.
Governor Mohammed, however, lamented that the anticipated changes have not materialized.
He said, “It’s a miracle that we are one of the biggest oil-producing nations, but we have not benefited for some time since you came on board.
“You have to explain that this is what you are going through. That is inclusion. And if you don’t say it, nobody will know. But, some of us know. We call this leadership and responsibility.
“You have to make our oil and gas sector produce. Not only to produce and sell but put it in our Treasury for distribution and sharing.
“You must provide financial services to us at subnational. Financial services that will help us to enhance our productivity, and also use the resources wisely. Because without us, there will be no Federal Government.”
Responding to the governor’s remarks, the ruling All Progressives Congress (APC) challenged PDP governors to substantiate their claims.
Nze Chidi Duru, the APC Deputy National Organising Secretary, criticized Governor Mohammed for presenting unverified allegations and urged him to provide concrete evidence to support his assertions.
Duru stressed the need for constructive criticism and transparency, highlighting that more funds have been allocated to states and local governments under the current administration.
He called for collaboration to identify and address systemic leakages, ensuring that all due revenues are remitted for equitable distribution.
The APC chieftain said, “Our call at all points in time is that opposing views are welcome in as much as they are constructive towards nation-building, and they are not views expressed only because they want to play to the gallery. If his view is to be taken seriously, it must not be generic and verbose. It must be specific and concrete.
“Senator Mohammed must put down those evidence on the table for further elaboration. It is only at that point that we can then, as a political party, venture to take on the issues in a very objective manner. We have seen clamours of this before now and when you dig further, you will find no substance in it.
“So, by and large, it is welcome, and our call would be that he put the facts. We have always known that proceeds that ought to go into the consolidated revenue account of the country are not things done in an obscure manner. They are things that are done transparently.”
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