Recovered funds: Governors to engage FG to recognise states in distribution of proceeds
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Recovered funds: Governors to engage FG to recognise states in distribution of proceeds

- Nigerian governors say they want a share of the recovered looted funds by the federal government

- This is as state governments have lost massive projected revenue via the federation account

- The governors have set up a committee to engage with the federal government to ensure that the state governments are not left out

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The Nigeria Governors Forum (NGF) has resolved to as a matter of urgency, engage the federal government to ensure that federation-funded investments recognise state governments as shareholders in the distribution of proceeds from recovered stolen funds.

This was agreed at the NGF's 8th COVID-19 teleconference meeting held on Thursday, May 14.

The governors expressed concerns about the ownership and distribution of proceeds from recovered looted funds and accounts or investments funded as the first-line charge from the federation account.

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Recovered funds: Governors to engage FG to recognise states in distribution of proceeds

The governors believe states should benefit from the recovered loot by the federal government. Photo credit: NGF
Source: Twitter

A statement signed by the NGF chairman and Ekiti state governor, Dr Kayode Fayemi said the move was due to the recent deductions from state government revenues in the federation account.

Part of the statement read: “The governors noted the threat this poses on the fiscal capacity of states to respond to the demands of the COVID-19 pandemic.

“Members also raised concern about the ownership and distribution of proceeds from recovered looted funds and accounts or investments funded as the first-line charge from the federation account.

“The forum agreed to engage with the federal government to ensure that the governance arrangement of all federation-funded investments recognizes state governments as shareholders in the distribution of proceeds and decision making.”

The governors have also set up a committee that would interface with the federal government on the next medium-term National Development Plan that would help mitigate the impact of the COVID-19 crisis.

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A second committee was also established to steer the activities of the NGF-NESG Economic Roundtable (NNER) – a sub-national platform of the NGF and the Nigerian Economic Summit group created to promote sub-national competitiveness through public-private collaboration.

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Recall that projection by the federal government has indicated that gloom awaits state governments in Nigeria as the country's federation account takes a free fall.

Federal, states and local government councils have lost massive projected revenue which will affect their plans for this year.

Accordingly, many states may be unable to meet their critical obligations, including payment of workers’ salaries, following the huge reduction in their revenue inflow from the federation account.

The states expected to share N3.3 trillion this year will not have more than N2.1 trillion.

This may have triggered the governor's latest move as an avenue to shore up their revenue base.

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