Nigeria in deep economic trouble: “FG, states, LGs share N518.5bn for June”

Two weeks after sharing tax proceeds from the Nigerian Liquefied Natural Gas, NLNG, the three tiers of government yesterday shared a larger amount of cash from the Federation Account for the month of June than they did for the month of May 2015.” With all due respects to my colleagues in the media, this is a story for the front page of every newspaper and headline news on electronic media

For those who have lately rained maledictions on the governors of Nigeria in general, and inexplicably Ogbeni Rauf Aregbesola of Osun state in particular, it might give them a pause for reflection on the true state of the nation’s economy.

Without defending the governors against charges of profligate spending, the published allocation for June goes a long way towards sustaining the point that the fault is not entirely their own – irrespective of political affiliation, APGA, APC or PDP.

Incidentally, the fault does not belong entirely to the Federal Government under Jonathan either. A lot of what has happened could be traced to our faulty federal system, as will be explained later and to external factors which are totally out of their control.

The majour source of our current problem lies in the federal government assuming sole responsibility for determining the benchmark of price and volume of crude exports on which the annual budget is based, exclusively reporting the revenue generated without verification by the two other tiers of government, states and Local Governments, and declaring whatever the FG wanted as gross revenue, distributable revenue and Excess Crude revenue. It was a “Father knows best” system which had landed us in trouble.

Vanguard