- Revenues from Nigeria's crude oil is not really helping state governments, Vice president Osinbajo has implied
- Osinbajo said that federal allocation is making some state too dependent on the centre
- The vice president made this observation in Abuna on Friday, January 31
Too much dependence on federal allocation on the part of state government accounts for why they are not functioning as much as they are expected to do.
This was the view of Vice president Yemi Osinbajo on Friday, January 31, during a lecture at the National Defence College Course 28 in Abuja, Channels TV reports.
Osinbajo said that until funds from the federal government are not more allocated to states, they will not wake up to the reality and need for generation of local revenue.
The vice president said: “The reason why state governments are not generating as much as they should is because there is something coming from the federal government every month.
“If there was nothing coming from the Federal Government, states could put their weight. If the Federal government itself does not generate oil revenues, we will pull our weight."
The vice president said that going by the size of its population, Nigeria should be generating more revenues apart from those spilling from crude oil.
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He, therefore, said that state government must be held accountable for the generation of their own revenues which can be achieved by the creation of an adequate economic environment for businesses.
Meanwhile, Legit.ng reported that the Central Bank of Nigeria (CBN) had called the attention of the federal government to the rising debt profile in the country.
The apex bank in Nigeria made this call during the 271st meeting of its Monetary Policy Committee (MPC) in Abuja on Friday, January 25.
The caution was contained in a state made by the governor of the CBN, Godwin Emefiele, who pointed out that the nation's debt was growing faster than its local and international revenues.
Emefiele, therefore, advised the government to take certain steps towards preventing the rising debts henceforth.
As one of the major steps to be taken, the CBN warned against the sharing of oil proceeds among the three tiers of government during the monthly Federation Accounts Allocation Committee (FAAC) meetings.
Moreover, the MPC urged the government to stop sole reliance on revenues and focus on diversifying the nation's economy by reforming its tax systems.
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