No reason federal allocation cannot improve – Bayelsa
Bayelsa State government has carpeted the Nigerian National Petroleum Corporation (NNPC) over dwindling federal allocation, saying there was no reason the allocation cannot improve.
John Gboribiogha Jonah, deputy governor of Bayelsa State, made comments on the impasse between the NNPC and the Governor’s Forum on Wednesday, while presenting the income and expenditure profile of the state for the months of June and July in Government House, Yenagoa.
Jonah expressed worry that while every analysis showed that things had improved, the indications from the NNPC were contrary to the thinking of the Governor’s Forum with regards to remittances.
He noted that crude oil exploitation had improved due to reduction in militant activities in the Niger Delta region, just as the naira was devalued by 100 percent, which ought to have resulted in improved federal allocations.
In his words: “So, even if you are not increasing, the thinking of governors forum is that as long as you have devalued, you can compensate for the loss of crude oil exported. Now the oil increased, we are always the victims. Niger Delta violence, but now they are out there enjoying, having a field day. Nobody disturbs.
“Why should money be reducing while all the variables you can identify are very favorable and increasing. Up till now, as far as I am concerned, they have not given us an answer.”
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The deputy governor disclosed that since Nigerians started criticizing the subsidy payment, NNPC had changed the name, saying if they continued to use the word subsidy, they would be in trouble. According to Jonah, the NNPC said Nigeria consumed 60 million litres of petrol per day while the Department of Petroleum Resources (DPR) said it was 36 million litres per day, and that the former has been paying subsidy on 60 million litres.
On the issue of smuggling across the borders, Jonah said the entire border filling stations have a total capacity of 4.0 million litres and that even if Nigeria was supplying the neighboring countries, it could not be up to 10 million litres. “Customs disclosed that we are consuming 38%. Of course, they pay subsiding on something that does not exist. As far as Governor’s Forum is concerned, they are paying subsidy and they pay it from excess crude account. These are the things that make our 13% go down,” he stated.
Urging people to investigate the figures put out by the NNPC as they are not ghosts, he countered people who say Niger Delta states have so much money without finding out the amount of money that go to other states and their local government areas.
He stated that people were always saying that Niger Delta states were having so much money, especially Bayelsa State, “but I’m sure most of you have not tried to find out the quantum that goes to various states.”
He emphasized that the NNPC had been unable, so far, to answer the questions raised by the Governor’s Forum, the Nigeria Customs Service and DPR on the figures it had given on petrol consumption and smuggling among other things.
The deputy governor said as a result, Bayelsa State had to make do with the balance of N4.14 billion for the months of June and July.
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