Edo Lost N10b In Federal Revenue Under Jonathan –Oshiomhole | Independent Newspapers Limited
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Edo Lost N10b In Federal Revenue Under Jonathan –Oshiomhole

Posted: Jul 11, 2015 at 1:10 am   /   by   /   comments (0)

By Chesa Chesa,  Abuja


Edo state lost about N10 billion over four years because of unshared proceeds from the Federation Account during the Goodluck Jonathan administration, according to the state governor, Adams Oshiomhole.

The governor made the claim on Friday when he spoke to State House correspondents after he met behind closed-doors with President Muhammadu Buhari, at the Presidential Villa.

Governor Adam Oshiomhole of Edo State

Governor Adam Oshiomhole of Edo State

Oshiomhole who emerged from the meeting with former governor of Rivers state, Rotimi Amaechi, said the loss in federal revenue suffered by Edo state, and others was because the Jonathan government did not share with the states all federally collected revenues as required by law.

He gave the example of the $1.6b remitted last month by the Nigeria Liquefied Natural Gas (NLNG) firm and smaller amounts by Shell and others as taxes, and which was only shared for the first time as bailout to the three tiers of government.

Oshiomhole explained that if the remittances had been done under the Jonathan administration, with Ngozi Okonjo-Iweala as the Finance Minister, the money would not have gotten to the states.

He thus arrived at the conclusion that Edo state alone, which he described as one of the lowest federal revenue earners, would have received up to N10 billion over a period of the last four years if NLNG taxes were shared out to states.

The governor thus commended the new approach to transparency and respect for regulations adopted by the new administration of President Buhari, a reason the governors are happy with him.

His words; “It is not just about the bailout but it is completely a new approach that anybody who is a stakeholder in the matters involving the funds of the federation can see through everything.

“What was extraordinary is that the NLNG has over the years been remmitting funds to the federal government but the federal government illegally refused to transfer these funds to the consolidated revenue fund which belongs to the three tiers of government.

“All that President Buhari has done, in line with his commitments to ensuring that all funds and monies accruing to the federation account are so remitted, is that he has directed the CBN to transfer the funds to the consolidated account.”

“And our commissioners along with federal officials met last week to share those funds in line with the revenue allocation formula. If this money had come under the last President, it will have gone the same way as in previous years.

“The NLNG is not starting fresh to remit. It has been doing that every year plus taxes paid by, I think Shell, amounting to about $500 million added to the amount of $1.6 billion from NLNG that total to the amount of $2.1 billion. And that was the money that was shared.

The governor also pointed out that the Nigerian worker, especially in the public sector, remains grossly underpaid, hence the demand for wage increase by labour movements makes economic sense.

While clarifying that Edo state government did not owe workers any salaries or allowances, Oshiomhole said efforts were being made to boost internally generated revenue.

However, he acknowledged that some states were better placed to get more from IGR because of large number of industries and economic activities going on there.

“For clarity, Edo State government is not indebted to any worker. We are up to date in our salary obligations. We are up to date in our allowances.

“I believe that some states have made a lot of progress in the area of internally generated revenue. But also some states are better placed to make more money or raise more money from internally generated revenue.”