Economy meeting: Here’s what was discussed between Buhari and state governors

Despite the bailout funds made available to states by federal government, Nigerian Governors Forum, on Thursday, pushed for a new revenue allocation formula.

The governors made the demand during a meeting with President Muhammadu Buhari at the Presidential Villa in Abuja.

They handed over a Fiscal Restructuring Plan for the Federation to the President, saying that it was necessary because of the present economic difficulties faced by their states.

The President, on his part, expressed regrets that the governors failed to pay workers despite the bailout funds released to 24 states. He stated that it was of great concern to him.

President Buhari further stated that the federal government will refund the money spent on federal infrastructures in the state, noting also that a committee will be set up to study the fiscal plan presented by the governors.

While reminding the governors that the federal government also has financial problems of its own, the President stated that: “You all know the problems we have found ourselves in. You have to bear with us.”

Speaking to newsmen after the meeting with the President, the Chairman of the Governors Forum, Governor Abdulaziz Yari of Zamfara State, said the new fiscal policy plan was necessary in the face of the growing economic hardship.

He further stated that it was difficult for the state governors to save money when the federal government was taking 52 percent of revenue and allocating a mere 25 percent to the 36 states.

“The meeting is about the economy. We deliberated among our colleagues and we did say we would pass our demands to the Federal Government to look at demands per state.”

“You will agree with me that states are the landlords. We own the land and the people, therefore, the economy of this country lies in the states. Everything comes from the states- the oil, agricultural produce, mining and people are in the states, while the federal government is in Abuja.”

“Therefore, if any state has any issues and is known to Mr President, I doubt very much if he will be able to sleep with his two eyes closed. We are closer to the people and have many challenges in the states.”

Speaking on the bailout funds and restructured debts, the NGF chairman stated that: “Today, we have received support from the Federal Government in terms of bailout, restructured our debts, given us 15% of the Excess Crude Account for development.”

“All these are temporal measures. Each state has a programme right from short to mid and long term which we presented to Mr. President and he graciously accepted and he plans to put a committee in place that would look at the matter starting with short term.”

“Concerning loan restructuring, bailout and Excess Crude Account, ECA, we are asking for 18 months moratorium before we can start paying, so that we would be able to strategise.”

“To develop Internally generated revenue, IGR, is not overnight, it is a long term programme that one has to plan for. And also our service has exploded and there is nothing we can do about it because people are getting their daily bread from there and we cannot say we are going to cut salaries and wages.”

“We have to find a solution, otherwise we would keep going back and forth because you have the plan for $100 per barrel and now oil is selling below the expected price, you will not achieve anything. Therefore, we have deviced a plan for short term, medium term and long term.”

“We are looking at the revenue mobilization formula in ensuring that resources which were due for the past 10 years to states will be made available to them after the National Assembly approval, while the agricultural and mining will be a long term programme.”

“The committee that will be set up will have the Vice President, Minister of Power, Works and Housing, Babatunde Fashola on that committee because he headed similar committee on revenue formula at the Nigeria Governors Forum in 2012/2013.”

“At the same time, some states have committed their resources to some federal government projects like roads and airports. There is a committee that was set up to look into that. We are urging the committee to hasten and complete their work and present to Mr. President so that states can get relief. These governors are in the states and we are supporting the states in so many ways.”

On the difficulty that states face in saving, Yari stated that: “States are only taking 26 per cent, whereas the federal government is taking 52 per cent and you are asking us to save? Anyway, I doubt if the minister made that statement. It is coming from the media.”

“The truth remains that states are taking 26 per cent and the federal government 52 per cent. We are not sovereign so how can we save? We are dealing with our different states’ economy which we are trying our best to fix. Most times, we are busy shouting that what is supposed to be given to us has not been given.”

“For the past three years, we have been asking if the excess crude has been used judiciously. So, the question of saving or not does not arise.”

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