The Nigeria Governors Forum which consists of all the Governors of the 36 states of the federation, has said that due to the dwindling revenue allocation, payment of salaries would be difficult in the months ahead.
The presentation was signed on behalf of the Chairman of the Forum, Governor Kayode Fayemi, by the Head, Legislative Liason, Peace and Security, Hajiya Fatima Y. Usman Katsina
The Forum raised the alarm in a presentation it made to the House of Representatives ad hoc committee investigating daily PMS consumption in the country.
It, however, attributed the situation to the inability of the Nigerian National Petroleum Company, NNPC, Limited to make remittances accrued from oil and gas into the federation account.
“The report had noted that ‘federation (FAAC) net oil & gas revenues have been declining since 2019 and are projected to decline significantly in 2022 by between N3 billion and up to N4.4 billion unless action is taken now.”
An analysis of the average monthly PMS consumption by states showed that a third of the country accounts for over 65 per cent consumption of PMS. The analysis showed that Lagos, Oyo, Ogun, Abuja, Delta, Kano, Kwara, Edo, Rivers, Kaduna, Kebbi and Adamawa accounted for 65 percent of PMS consumption in the Country.
The Forum said further that remittances to FAAC would continue to shrink as NNPC recovers this shortfall from the Federation as a result of crude oil price recovery. Also that with the coming into effect of the Petroleum Industry Act, gross oil & gas revenues could be (much) lower than currently projected because of the new fiscal terms and the earmarking of deductible revenues specified in the PIA, and that could reduce net oil & gas revenues even further.
“It is our prayer that Nigerians can benefit from the bounty that God has blessed our nation with, and that Nigerians can enjoy the special privileges of being members of an oil producing nation”, the Forum added.
