19 States of the Federation will get 2billion naira each as payment from the Ecological Fund as a settlement to be at par with other states.
This is even as the National Economic Council (NEC) approved the extension of the budget support to states, which commenced last year.
The disbursement of the facility which commenced last year was scheduled to end this month of May 2017.
The N2billion payment was recommended by the committee set up by the NEC at its last meeting to investigate the dwindling Ecological Funds which disclosed that the same amount was released to the other states in the last dispensation.
NEC after a briefing by the Accountant General of the Federation at its last meeting resolved to audit the Ecological Fund and set up an Adhoc committee to carry out the mandate. Reports show that between 2007 and 2015, the ecological fund got an average of N48 billion yearly. A total of N432.5 billion accrued to the fund during the nine years.
Briefing newsmen after the Council meeting, on Thursday in Abuja, Kaduna State Governor, Nasir El-Rufai, who briefed alongside his Imo and Bauchi counterpart, Rochas Okorocha and Mohammed Abubakar disclosed that the Goodluck Jonathan-led administration paid out the said amount to states governed by Peoples Democratic Party.
Giving details of the interim report presented to NEC by the 11-man Committee on Ecological Fund which he chairs, El- Rufai said the Ecological Fund currently stands at N33.6billion which only 65% of the federal government’s share.
It disclosed that the previous administration handed out the said amount to States whose governors were close to the President, without formal requests. The 19 states that did not benefit include Adamawa, Akwa-lbom, Borno, Edo, Ekiti, lmo, Jigawa, Kano, Kwara, Lagos, Nasarawa, Niger, Ogun, Osun, Oyo, Rivers, Sokoto, Yobe, Zamfara, and FCT.
The Committee informed Council that the revised sharing formula of the Ecological Funds as modified is as follows: FG 1% States 0.72% LGAS 0.60%. That all states and Local Government Areas have got their share of the Ecological Fund, and that the only thing left is the Federal Government’s share of 1% of the 1% belonging to the FG, (which now stands at N33.6 billion) NEMA and Great Green Wall are statutorily entitled to 20% and 15% respectively.
Only 65% of the FG’s share is available for sharing, the governor explained adding that the 19 states did not benefit from the 1% share that was handed out to other states.
According to him, the report noted that there is a need to establish clear criteria for sharing the 65% of the FG share among States of the Federation, going forward.
However, since the N33.6billion will not go round to the 19 states, the committee recommended that the N2billion be paid in tranches to the states.
“Thirteen billion (N13 B) naira is available for sharing to States since N20 billion must be left in the account for unknown national emergencies. “The committee recommended partial payment to the states since the 36.3billion cannot go round,” the Kaduna state governor said.
On the extension of the budget support programme for the states, the Imo state governor said the council was concerned about the fact that the stoppage of the facility might create lapses in the bid to stabilise the economy.
“We are gradually coming out of recession and if this budgetary support ceases at the end of May, it might create some lapses in our bid to stabilize the economy. So council resolved that the budgetary support be extended to enable the states catch up with the economic challenges of the moment” Okorocha said.
Despite the budget support facility and other bailout funds approved by the government to ease the economic challenges in states, some of the governors are yet to clear the backlog of salaries.
Council also received briefing from the Minister of Agriculture and Rural Development, Audu Ogbe on the severe shortage of tractors in the country as the 2017 farming season enters its critical stage.
The minister suggested the procurement of at least 100 tractors to support the efforts of farmers in boosting food production. He said this had become imperative since the agreement with the Chinese counterparts was taking too long. Council urged the states to step up efforts t acquire more tractors to boost agricultural production in their respective states.
Elizabeth Archibong
