{"id":63274,"date":"2018-07-31T17:08:50","date_gmt":"2018-07-31T16:08:50","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=63274"},"modified":"2018-07-31T17:08:50","modified_gmt":"2018-07-31T16:08:50","slug":"faac-serial-deadlockswhen-will-this-quarrel-over-sharing-of-free-money-stop","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/faac-serial-deadlockswhen-will-this-quarrel-over-sharing-of-free-money-stop\/","title":{"rendered":"FAAC Serial Deadlocks:When Will This Quarrel Over Sharing Of Free Money Stop?"},"content":{"rendered":"
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By: Ifeanyi Izeze<\/div>\n
<\/div>\n
It has become a routine ritual that every month, the Federation<\/div>\n
AccountAllocation Committee (FAAC) must end with fighting over shortfalls<\/div>\n
inremittance of accrued revenue into the central coffer. This year alone,<\/div>\n
we have recordedseven deadlocks in FAAC meetings. It ended inconclusive in<\/div>\n
February for Januaryallocation, March for February allocation, April for<\/div>\n
March allocation, also on3th June for May allocation and two times in July<\/div>\n
for June allocation<\/div>\n
<\/div>\n
By the way, what is FAAC in the first instance? Isit not the forumwhere<\/div>\n
money is shared as allocations among the Federal, States and<\/div>\n
LocalGovernments? \u00a0This meeting is chaired by the Minister of Finance and<\/div>\n
Commissionersof finance from the 36 states of the federation and FCT every<\/div>\n
month, as well asrepresentatives of revenue generating agencies.<\/div>\n
<\/div>\n
How long can wecontinue like this? For somemonths now, it has been the<\/div>\n
federating states as usual accusing the FederalGovernment and the Nigerian<\/div>\n
National Petroleum Corporation (NNPC) of failing toremit tens of billions<\/div>\n
of Naira of the monthly accrued revenue into theFederation Account.<\/div>\n
<\/div>\n
Curiously, our usual reactions have always been to rush to berate theNNPC<\/div>\n
and other revenue generating agencies of the federal government but<\/div>\n
wefailed to see or rather honestly acknowledge that there is something<\/div>\n
seriouslywrong with the way our federal system is structured. We should<\/div>\n
ask ourselves:is this how federal system of government works in other<\/div>\n
climes where it ispracticed such as the United States of America whose<\/div>\n
model we claimed to havecopied?<\/div>\n
<\/div>\n
It has become an indisputablefact that today\u2019s Nigerian states essentially<\/div>\n
have been reduced to parastatalsof the Federal Government and have become<\/div>\n
dangerously addicted to the monthly\u201chandouts\u201d (allocation) they receive<\/div>\n
from Abuja? This is a result of decades of dodging harddecisions on the<\/div>\n
negatively skewed relationship between the federal on one handand the<\/div>\n
state and local governments on the other.<\/div>\n
<\/div>\n
How do you reconcile that the combined Internally Generated Revenue<\/div>\n
(IGR)from all the 36 states came up to less than one percent of Nigeria\u2019s<\/div>\n
nominal GrossDomestic Product (GDP)? Internally generated revenue is far<\/div>\n
less than what thestates require to run their administrations and many<\/div>\n
state and localgovernments survive by consuming more resources than they<\/div>\n
can generateinternally – thanks to the generous handouts from the<\/div>\n
federation accounts andthe \u201cspirit of fighting\u201d that goes with it.<\/div>\n
<\/div>\n
With these every-month quarrels over sharing of free money by<\/div>\n
thethree-tiers of government, it should have dawned on us that we have<\/div>\n
promoted, orrather tolerated a defective political economic structure.<\/div>\n
<\/div>\n
We politicized the creation of states and local governments over theyears<\/div>\n
and ended up having states and local governments that are too weak tomeet<\/div>\n
their constitutional responsibilities to their people. Consequently<\/div>\n
theFederal Government emasculated them and took away those<\/div>\n
responsibilities thatshould actually be handled by the states and local<\/div>\n
governments.<\/div>\n
<\/div>\n
As aconsequence, the Federal Government appropriates, along with<\/div>\n
theseresponsibilities, huge resources to itself and leaving little or<\/div>\n
nothing to thelocal and state governments. For example, in the allocation<\/div>\n
of revenue from theFederation Account, the Federal Government is unduly<\/div>\n
favoured at the expense ofthe States and Local Governments. Out of every<\/div>\n
Naira in the Federation Account,56 kobo will go to the Federal Government!<\/div>\n
This is neither efficient norequitable.<\/div>\n
<\/div>\n
If we accept thewisdom behind calls for a restructuring of the polity, we<\/div>\n
must be ready tobuild a foundation for its success: we must, in other<\/div>\n
words also restructure andstrengthen the economies of the sub-national<\/div>\n
units (the states) by making moremoney available to them for grassroot<\/div>\n
development.<\/div>\n
<\/div>\n
Former VicePresident and presidential hopeful on the platform of the<\/div>\n
Peoples DemocraticParty (PDP), Atiku Abubakar, in his recent speech at the<\/div>\n
London\u2019s RoyalInstitute of International Affairs (Chatham House),<\/div>\n
frontally challenged thispresent arrangement and suggested some cogent<\/div>\n
policy roadmaps that if taken,may redress some of the problems of our<\/div>\n
negatively skewed federal system.<\/div>\n
<\/div>\n
Though political opponents including the ruling party, APC, may take itas<\/div>\n
subtle campaign for the PDP presidential ticket, there are some<\/div>\n
takeawaysfrom the Atiku\u2019s speech at the Chatham House London that deserve<\/div>\n
to beseriously considered if we actually want to help the states<\/div>\n
strengthen theireconomies and free them from the present cap-in-hand<\/div>\n
situation.<\/div>\n
<\/div>\n
Atiku on \u201cTheImportance of Strengthening the Economic Management System of<\/div>\n
the FederatingStates in Nigeria,\u201d said \u201cThere is nothing as addictive as<\/div>\n
states that are dependent on theirmonthly share of revenue from crude oil<\/div>\n
sales and the only way to get them tomanage their economies in an<\/div>\n
economically viable way is to cure them off thataddiction.\u201d<\/div>\n
<\/div>\n
The need to reverse the current sharing formula and allocate more moneyto<\/div>\n
the local, states and federal governments in that order, cannot<\/div>\n
beoveremphasized. This will make the centre less attractive and drive<\/div>\n
developmentto the grassroot through the activities of local governments in<\/div>\n
addition towhatever the state governments will also add to improve the<\/div>\n
quality of thelives of the ordinary Nigerians. We must commit to a new<\/div>\n
development agenda withfocus on wealth creation by the states, rather than<\/div>\n
wealth distribution fromAbuja to state and local government headquarters.<\/div>\n
God bless Nigeria!<\/div>\n
<\/div>\n
(IFEANYI IZEZE:\u00a0iizeze@yahoo.com<\/a>;234-8033043009)<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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    By: Ifeanyi Izeze It has become a routine ritual that every month, the Federation AccountAllocation Committee (FAAC) must end with fighting over shortfalls inremittance of accrued revenue into the central…<\/p>\n","protected":false},"author":1,"featured_media":63275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-63274","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"\nFAAC Serial Deadlocks:When Will This Quarrel Over Sharing Of Free Money Stop? - Pointblank News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/faac-serial-deadlockswhen-will-this-quarrel-over-sharing-of-free-money-stop\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FAAC Serial Deadlocks:When Will This Quarrel Over Sharing Of Free Money Stop? 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