Federal Allocations To States Low Since 2011 – Amosun


The Ogun State Governor, Ibikunle Amosun, has accused the Federal Government of denying the states their allocations, making it difficult for states to pay salaries conveniently.
Mr. Amosun made the allegation on Tuesday at a town hall meeting on the 2015 budget held at the June 12 Cultural Center Kuto, Abeokuta.
He revealed that funds from the federal account had been dwindling since 2011.
He said the situation had worsened to the extent that many states found it difficult to pay workers’ salary.
Mr. Amosun said the wage bill of the state including allowances had risen to about N8 billion monthly. He said only Ogun and Lagos states generate revenue exceeding the allocation from the federation account.
He said his administration would aim at increasing its monthly Internal Generated Revenue, IGR, from its current amount to about N10 billion every month, noting that IGR was the only way state governments could survive the dwindling allocation from the federation account.
The governor noted that the target, which will begin in 2015, will be done without unnecessarily inconveniencing the people.
Mr. Amosun said the administration wished to make Ogun State the economic capital of the nation ahead of Lagos State.
He said he was happy the state had begun to take “its pride position in the comity of nations” with its recent classification as the industrial capital of Nigeria.
“What we are doing today is to take stock and see how far we have gone and those things we need to do better by further listening to our people,” he said.
“Ogun will get to a time when it will be auto-driven, system driven so that governors will not have difficulty in making things happen. They will not have difficulty in paying salaries and doing all of those.
“The Finance Minister has confirmed that there are challenges in revenue accrued from oil revenue due to oil theft and as we are speaking, they are yet to pay us, the only way we can be able to pay salaries is to think outside the box and see how we can improve our IGR.”
Mr. Amosun said his administration had absorbed 450 federal teachers.
He also disclosed that all was set for about five auto assembly plants to be constructed in Kobape, Abeokuta.

SOURCE: PREMIUM TIMES

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