AKURE—THE 36 states of the federation have turned down a proposal from the Federal Government that they (states) should use the N12.5 billion earmarked to cushion the effects of the rise in fuel prices to buy luxury buses for distribution to the states. Finance Minister, Dr. Ngozi Okonjo-Iweala, conveyed the Federal Government’s decision to the state Finance Commissioners at their last Federation Account Allocation Committee (FAAC) held at Abuja last week.
Briefing newsmen in Akure, Ondo State Finance and Planning Commissioners, Chief Tayo Alasoadura, said states were unanimous in rejecting the proposal of the Federal Government and the manner in which the palliative fund was to be expended on their behalf . Chief Alasoadura said the Federal Government was expected to release N100 million to each state while the states are expected to argument it with another N200 million totaling N300 million, saying: "When the Hon. Finance Minister conveyed the decision of the Federal Government to us at last FAAC meeting, we kicked against it and told her point blank that the decision was absolutely wrong and unacceptable to the states.
"In fact, we told her that the needs of the states differ and that it was wrong for the Federal Government to unilaterally take a decision on behalf of the states without putting us into consideration. After much argument and counter argument from the minister, we finally did not agree with the decision of the Federal Government.
"We would not allow ourselves to be used as a rubber stamp, things should be done in a normal way. What the Federal Government intended doing is against the principle of federalism," the commissioner said.
However, after the rejection, the minister, according to Chief Alasoadura, insisted that the finance commissioners should discuss the matter with their governors after which a final decision would be taken at their next FAC meeting.
Meanwhile, Ondo State government has given car loan worth N500 million to 692 civil servants in the state. Of the N500 million that was sourced from the money market, the finance commissioner said N225 million was for civil servants, while N200 million is for teachers and the balance for other public servants in the boards and parastatals in the state.
Speaking on the allocation to the states for the months of September, October and November, Alasoadura said N1.7 billion was received for September, N1.9 billion for October and N2 billion for November this year. Alasoadura added that N786 million was spent on recurrent expenditure and personnel cost while another N356 million of the N1.7 billion received for September was expended on statutory recurrent items, adding that N560 million was approved for capital development for the month.
