HIGHER FAAC USELESS FOR STATES IN POOR ECONOMY, DWINDLING NAIRA VALUE -GOV MUFTWANG
Plateau State Governor, Caleb Muftwang says there is nothing worthwhile is receiving fat Federal Allocation when the value of such is low because of weak purchasing power of the naira and poor economy.
Governor Muftwang who spoke on Tuesday while on a national television said it is not disputed that there is an increase in the monthly federal allocation to the 36 state governments.
He however, stated that the purchasing value of the monthly allocation have instantly “decreased significantly," even before it is received.
Governor Muftwang statement was in direct response to what Nigerian President, Bola Tinubu had said in his broadcast to End-Bad-Governance protesters last Sunday.
President Tinubu had listed the removal of petrol subsidy and the floating of the naira as part of reforms of his administration.
Those reforms, the president insisted, had led to State and Local Governments receiving the highest allocations ever in the country’s history from the Federation Account.
But Governor Muftwang insisted saying that: “It is true that in terms of amount, it has actually increased but in terms of purchasing power, in terms of real value, it has decreased very significantly.
“So, we shouldn’t just look at the amount, let’s look at the purchasing power of the amount that the state has so far received from the federation account.
“It doesn’t need any rocket science. When the last administration came in in 2015, the dollar exchanged to about N180 to the naira. Today, you are telling me that money has increased but all of us know the value of the naira to the dollar.
“And we are still a consumer nation; many of the things we are using in governance are imported and so they are dollar-denominated.”
On record, the Federal Government gets a total of 52.68%, states get 26.72% while LGs get 20.60% of the country’s monthly revenue allocation.
The allocation is disbursed by the Federation Account Allocation Committee (FAAC) of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) that operates under the Presidency.
