Governors launched a fresh appeal to the Federal Government, to consider “poor states” for another round of budget support.
The new bailout, they said, would enable the states offset staff salary arrears and other allowances.
Aside Lagos and Rivers states, most of the governors persuaded the Minister of Finance, Kemi Adoesun, to find ways of sustaining the budget support facility to poor states, especially when the amount that accrues into the federation account was less than N600 billion.
This follows confirmation that some states have defaulted in some of the criteria set out for accessing the funds, a development that has stalled it for a few months.
Ebonyi State Governor, Dave Umahi, who briefed State House Correspondents after yesterday’s National Economic Council (NEC) meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa in Abuja, said for the month of September 2017, a total of N630 billion was available for states to share, hence, non of the states would qualify for the special intervention or bail out.
He said: “We came to understanding that any month the total sharable revenue in the federation account is less than N600 billion, the the Minister of Finance will give each state budget support.
“We concluded that in the last 12 months and that continued for the second year. States have done very well; some states have been able to pay their accumulated salary debts and also increased their commitment to infrastructure and generation of revenue.
“However, from July, that was not paid, and in the month of August, I think about seven states were paid because, according to the minister, other states did not comply with the set down rules; the most outstanding of that was the non remittance of Value Added Tax (VAT) from the states.
“So, those seven states have been paid, but more states have complied, and we requested that those states that have complied should be paid.
“The good news is that in the month of September, the sharable amount is N630 billion, so there would be no budget support for the states.”
The governor gave a breakdown of funds in the excess crude account on behalf of the Finance Ministry He said stabilisation account balance as at September 26, 2017, stood at N4.354 billion, while development of natural resources account balance as at September 26 stood at N84.693 billion. Excess crude account balance as at September 22 stood at $2.3 billion.
Source: News Agencies
