Gov. Diri Calls for Review of Revenue Derivation Formula…details

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CBN

Governor Diri of Bayelsa State calls for the review of revenue derivation formula in line with the practice of fiscal federalism, says they can’t continue to develop other states with Bayelsa money.

 

Diri, who queried the existing practice where resource-endowed states in Nigeria, particularly in the Niger Delta, get 13 percent as monthly allocation from their resources, insisted that it was wrong to describe Bayelsa as insolvent and unable to exist without monthly federal allocation while its resources were being expropriated to Abuja and shared to other states in the country.

 

CBN

Governor Diri said the Niger Delta is an area that should be better than it is if we were allowed to use our resources for our development. Since I arrived this country, what crossed my mind has been how Bayelsa would be if we practised true federalism whereby we get 100 per cent of our revenue from oil and gas and not 13 per cent as it is today. Maybe we would have had one small Houston in Yenagoa.

 

You cannot take away the resources in my state and the internally generated revenue that would have accrued to us and expropriate it in the name of Federation Account Allocation Committee (FAAC). Every month end, the 36 states in the country gather in Abuja to share resources accruing from my state and they still come back to insult us that our state is insolvent.

 

“I have never seen anywhere in the world where the essence of the FAAC is to share revenue only from oil and gas. What about the revenue from other mineral resources like gold? Why are they not also shared? This is the naked truth,” he said.

 

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