The 36 state
governments on Monday restated their demand for more transparency and
accountability from the Nigerian National Petroleum Corporation (NNPC)
and other revenue collection agencies in the country to enhance the
profile of federally generated revenue.
Akwa Ibom State
governor, Godswill Akpabio, who made the states’ position known at the
retreat for Revenue Mobilisation Allocation and Fiscal Commission
(RMAFC) commissioners and management in Uyo, Akwa Ibom State, restated
their resolve not to relent in their agitations for a greater share
from the federation account as the commission is working on a new
allocation formula for the country.
“The call from the
states for more revenue allocation would persist given the need to
promote development from the grassroots to the centre, instead of the
present situation of the federal government taking on too much funds
for very little work done,” the governor said.
Transparency report
The Nigerian
Extractive Industries Transparency Initiative (NEITI) in its latest
report indicted the NNPC for lack of transparency in the measurement of
revenue flows from exploration of oil and gas. The NEITI report, which
covered activities in the oil and gas sector between 2006 and 2008,
also revealed impropriety in the sale of tax and royalty oil by the
corporation.
“Improved
accounting procedures are required to improve the transparency of
NNPC’s handling of these components of the proceeds of crude sales,”
the report added, noting that the volumes reported by NNPC for crude
oil lifting differed from those reported by companies operating the
terminals.
Mr. Akpabio argued
that instead of the Federal Government deploying a larger proportion of
funds from the Federation Account to consultancy services and other
sundry expenses that do not impact positively on the people, such
monies should have been given to the states that have more
developmental challenges to attend to.
Urging the RMAFC to
urgently come up with a new revenue allocation formula that would
ensure equity, justice, and fairness to all stakeholders, the governor
pointed out that the Federal Government must agree that development can
only move from the states to the center and not the other way round.
According to him,
the commission must also closely consider addressing the issues of
compensation for states currently suffering from the adverse effects of
oil production activities and security beyond 200 metres isobaths,
adding that a critique of existing processes for reviewing indices of
sharing the 13 per cent derivation fund must be carried out to avoid
the recurrent problem of over payment and under payment for some states.
Diversifying revenue base
The governor said
there was need for RMAFC to seriously tackle the diversification of the
country’s revenue base, adding that a close examination of all past
reports on lack of transparency and accountability on the part of
stakeholders in the collection and management of revenue accruing into
the federation account would be helpful.
Vice president,
Namadi Sambo, who declared the retreat open, pledged federal
government’s readiness to support RMAFC in producing a new Revenue
Allocation Formula, adding that government was aware of the enormous
responsibilities of the commission and would not renege in its pledge
to provide the necessary environment for it to deliver on its mandate.
Mr. Sambo,
represented by the minister of finance, Olusegun Aganga, said
government is desirous to reduce the high cost of governance, adding
that it has already taken steps in the 2011 budget to address the
issue, while challenging the RMAFC to come up with a solution to the
problem.
RMAFC chairman, Elias Mbam, said the retreat, which was packaged to
enable the newly appointed members of the commission to carefully
examine and understand the operations and fundamental responsibilities
of its operations, would also provide the opportunity to set its agenda
and chart a new course for the achievements of its targets.
