RECENTLY, governments in virtually all the 36 states of the federation have embarked on alternative ways of generating funds to run their administrations as they groan over delay in the release of the monthly statutory revenue allocation by the Federal Government. In spite of a denial by the Federal Government, state governments had held the central government responsible for the late release of the monthly statutory allocations to states and the 774 local government councils.THE situation had led not only to late payment of salaries of workers but some states have halted work on ongoing projects while contracts for new projects have also been kept in abeyance.A Senate report says only five states of the federation could pay salaries of workers without Federal Government statutory allocation. This assertion has been punctured by experts who claimed that none of the 36 states is viable enough to pay salaries without federal allocation!EXPECTEDLY, the Presidency reacted by saying that the major source of funds for the Federal Government is the sale of crude oil and that, at times, there may be delay before the money accruing from the sale of oil is received while Federal Allocation Appropriation Committee (FAAC) meetings are not held unless there is money in the account. The meeting, according to the Presidency, was recently shifted from the 12th and 13th day of every month to the 18th and 19th day during which all revenues from oil would have been in government kitty.PUNDITS have averred that the nation is operating a 'feeding bottle federation' where states are over dependent on the central government. This confirms our earlier comment on the needless agitations for the creation of more states when existing ones are not sovereignly viable. Unfortunately, states have been created without any consideration for elements of viability but to satisfy primordial interests. States also delay release of funds to local governments, further compounding the problems of governance at the grassroots level.IN a situation where federally collected revenue accounts for about 90 per cent of state governments' total revenue, the issue of sharing between the three tiers of government would understandably raise a lot of emotions. It has always been a battle between the federal and state governments on the one hand, and the state and local governments on the other.STATE governments have always advocated that the Federal Government's share should be reduced from its current 52 per cent to 35 per cent. States get 28 per cent while local government councils get 20 per cent.RISING from a meeting of the Nigerian Governors Forum (NGF), the governors equally deliberated extensively on what they tagged the 'continuing unconstitutional deductions' by the Federal Government from the Federation Account in the name of oil subsidy which negates the principles of federalism and budgetary provisions. The governors noted that, despite the increase in pump price of petrol, the quantum of subsidy deduction was still worryingIN a related development, speakers of the Houses of Assembly of South-South states of Nigeria had rejected the 13 per cent revenue derivation currently being paid to them by the Federal Government just as they demanded for the payment of 50 per cent derivation to the six affected states of Akwa 'Ibom, Rivers, Bayelsa, Edo, Delta and Cross River. Although the Okigbo Commission claimed it appreciated the Federal Government's position, but its final report showed greater disposition towards the states.IT is contentious whether the Federal Government has been judicious in its use of the funds available to it. Over the years, despite the huge resources, at its disposal, the nation has witnessed neither an agrarian revolution nor industrialisation that will put the country on the map of developed nations. Instead, white elephants dot the landscape, infrastructure are decaying, and the quality of life has generally declined. With so much money to play around, and with little or no monitoring, it is hardly surprising that corruption has assumed a frightening proportion. In other words, the trickle-down effects of federal expenditure has been abysmal. WE will like to point out, however, that making more money available to the states and local governments promptly carries with it the responsibility of more judicious application of public finds. Even though some states now receive a little more than they did under the military, the frivolous expenditure, such as on overseas trips and jumbo pay packets for political office holders should never be the proper use of revenue accruing to them from the federation account.JUST as there is delay in statutory allocation to the states, so also there is delay in the states releasing funds to the various local government councils. We therefore call on the governments at all levels to promptly release funds to the next level of government but above this, we urge government to ensure quality control of projects executed. Democracy is not just about practising true federalism at the federal level, it is also about giving the people the benefit of the worth of the nation's common patrimony.
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