Excess Revenue: Udenwa Wants 50% Shared
Says FG's unilaterial saving tyrannical
From Cletus Akwaya in Abuja
Governor of Imo State, Chief Achike Udenwa, at the weekend urged the Federal Government to share 50 per cent of the country's excess earnings from the sale of crude oil. He said the Federal Government unilateral decision to save the money was tyrannical.
Udenwa who spoke with newsmen in Abuja enroute Katsina to attend the turbanning of the Speaker, House of Representatives, Hon. Aminu Bello Masari, said the Federal Government ought to have discussed with all beneficiaries of the Federation Account before arriving at the decision to save the money.
The excess crude revenue is the proceed of oil exports above the budgeted benchmark of $25per barrel. While the Federal Government has been saving the revenue from excess crude sales since January, state governors have been demanding that the money. But now at about N320 billion be shared. Oil prices have since last week hit a 25-year high of $42.2per barrel in the international market.
According to Udenwa, "This (excess crude account) is where you see the Federal Government's tyranny comes in. It is right that as a nation, we save something. This excess crude belongs to every Nigerian, it behoves us to have dialogue. The Federal Government has no right to say this money will never be shared."
Rather than save all the money for the "rainy day," he suggested that 50 per cent of the extra-budgetary earnings be shared to beneficiaries of the Federation Account to enable the states finance some on-going development projects.
"Why should I go borrow N1 billion from the banks at high interest rates for development projects when my money is lying idle in a CBN account without any interest?" he asked saying, the decision did not make economic sense.
Besides, Udenwa contended that the Federal Government's decision to float N150 billion at the capital market was a clear indication that "it is not doing well," adding that the most sensible thing was for all the stakeholders to meet and agree on a sharing formula for the excess money from crude sales either on a monthly or quarterly basis.
But the Minister of Finance, Dr (Mrs) Ngozi Okonjo-Iweala, yesterday said the excess crude account was commended by the Managing Director of the International Monetary Fund (IMF), Dr. Rodrigo De Rato, who visited the country last week.
Okonjo-Iweala who featured in the Federal Radio Corporation of Nigeria (FRCN) programme, Eagle Square said the IMF has on the basis of the Federal Government's prudent management of the oil windfall pledged the Fund's cooperation to monitor the country's economic reform programme. She said this would engender international confidence in the nation's economy especially in the area of foreign direct investment.
Speaking on the jostling for the presidency in 2007, Udenwa advised those nursing presidential ambition from the North to drop the idea.
He said since the South East geo-political zone has produced the presidency for just six months under the regime of the late Major General Aguiyi Ironsi, as opposed to about 25 years for the North, justice required that the zone be allowed to produce the president in 2007.
He argued that the nation's political history has always recognised the North, South and West as geo-political entities, saying the reference to an alleged "agreement" between the North and South in respect of 2007 presidency was not tenable.
"No where was it ever agreed. We attended that meeting where the matter was raised, it was me who stood up to say that that position was not acceptable to our people since it meant waiting until 2015 before an Igbo man could become president and there was no agreement on that," he stated.
Asked why politicians from the South East were yet to indicate interest in the 2007 presidential election, Udenwa said "the South East is very much committed to producing the presidency in 2007" adding "it doesn't mean that the person who comes out first will always win."
"We are not waiting till the time of primaries. As time goes on, our aspirants will emerge. We are not going to fight anybody. We are saying that equity demands that we produce the next president of the country, "Udenwa added.
He also criticized the inability of the Federal Government to give the country a new revenue formula five years into the democratic dispensation, saying the Federal Govern-ment was unduly benefiting from the present sharing arrangement.
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