The presidency has suspended the deduction for loans from the federation account’s allocation of the state governments for the month of March, to enable them pay salaries and meet their other financial obligations.
Finance minister, Mrs Kemi Adeosun, who made this known to the state house correspondents after the meeting of the national economic council in Abuja, ruled out a fresh bail out for the state governments. The minister said the decision was taken due the low revenue shared for the month of March, which she described as among the lowest in the recent memory.
The meeting, she said asked the state governments to provide the presidency with their financial profile to determine the financial support needed by each of them. Adeosun also said the meeting asked the governors to sanitize their salary bill, and maximize the utilization of their internally generated revenue.
Meanwhile, the Federal, State and Local Governments have shared revenue totalling N299.7 billion as allocation from the federation account for the month of March. The revenue, which is one of the lowest since the year 2014, is N39.12 billion lower than n338.7 billion shared in the month of February.
Finance ministry permanent secretary, Mahmud Dutse, announced this at the end of the monthly meeting of the federation account allocation committee in Abuja. From the statutory revenue, federal government received N109.13 billion, 36 state government (N55.2 billion), 774 local governments (N42.6 billion), while the oil producing states got extra n19.7 billion as 13 per cent derivation. From the value-added-tax, federal government got n9.2 billion, state governments (N30.8 billion), and local governments (N21.5 billion).
The permanent secretary also puts the fund in the excess crude oil account at N2.3 billion, an increase from $2.25 billion