The Federation Accounts Allocation Committee (FAAC) meeting scheduled for Wednesday for the month of June failed to hold, heightening fears that the government may be so cash-strapped to meet its obligation to the states.
At the meeting of the committee in May, the 36 states demanded the Committee to extract a word of commitment from the Nigerian National Petroleum Corporation (NNPC) on the unremitted $1.48 billion the audit report said it would have to refund to the federation account.
The states said the early refund by the corporation would save the government the embarrassment of lack of funds as the challenge of dwindling revenue as a result of declining global oil prices bites harder.
Crude oil prices, which rose marginally to about $62 per barrel last week, dropped to about $60.08 per barrel on Tuesday, triggering more anxiety in the states, most of which are grappling with the problem of huge unsettled workers’ salaries running into several months.
At the aborted FAAC meeting on Wednesday, members resolved to take their case before President Muhammadu Buhari for him to consider their proposal for bailout to help them meet urgent financial obligations, particularly to the workers.
During the planned meeting with the president, the governors were said to be considering discussions on the issue of the excess crude allocation and the revenue from there to the 36 states.
The All Progressives Congress (APC) governors had last month requested President Buhari to approve a financial bailout to enable the states pay a backlog of salaries to workers in the states.
Already, workers in Osun, Enugu, Ekiti, Benue and Ebonyi states are on strike over the inability of their
state governments to pay their back log of salaries.
The issue of FAAC allocation and the excess crude oil revenue savings; proposal for bailout to states; revenue enhancement scheme for states formed the agenda of the meeting of the Nigeria
Governors’ Forum (NGF) on Wednesday in Abuja.
Following the swearing in of the various state governors on May 29 and the subsequent inauguration of the executive councils, the state administrations have been anticipating the first FAAC meeting to receive allocations to run the affairs of the states.
Speculations were rife at the venue of the botched meeting that most of the former governors left empty treasuries for their successors in the wake the last elections.
No word was forthcoming from the Federal Ministry of Finance on why the meeting failed to hold as they await the appointment of a new minister by the president.
The minister of state for Finance is usually the Chairman of FAAC, working with the Accountant General of the Federation to host the meeting.
However, last Friday’s retirement of the immediate past Accountant General of the Federation (AGF), Jonah Otunla, and the ongoing selection process to appoint his successor, may have also played a key role in the cancellation of the meeting.
Though Mohammed Dikwa, director of Funds in the AGF’s office was announced as Mr. Otunla’s successor in acting capacity, he is also involved in the selection test for prospective substantive appointee to the office.
Source-Premium Times