Governors demand $1bn from Excess Crude Account

L-R: Nasarawa State Governor, Alhaji Umaru Al-Makura; Niger State Governor, Dr. Babangida Aliyu; and Kogi State Governor, Capt. Idris Wada (retd.), during the inauguration of Northern States Governors Committee on Reconciliation, Healing and Security in Abuja ...

The 36 state governors have made a request to the Federal Government for the release of $1bn (N158bn) to them from the controversial Excess Crude Account for some developmental projects.

The Deputy Governor, Sokoto State, Alhaji Mukhtar Shagari, said this while briefing State House correspondents at the end of the 10th meeting of the National Economic Council presided over by Vice-President Namadi Sambo at the Presidential Villa, on Tuesday.

The council has all state governors, the Governor of the Central Bank of Nigeria, as well as ministers of Finance, National Planning and Federal Capital Territory as members.

Shagari was joined at the briefing by governors Ibrahim Dankwabo of Gombe State; Kayode Fayemi, Ekiti; and Martins Elechi, Ebonyi.

He said the request was made notwithstanding the governors’ disposition that the litigation on the account should continue.

Shagari explained that the request became imperative because of some ongoing projects in the various states, which the respective governments needed money to complete.

When asked whether the deduction would not be prejudicial, the deputy governor said no decision had been taken yet on the governors’ request as the council still needed the advice of the Attorney-General of the Federation on the matter.

“Council was briefed on the state of negotiations between the Federal Government and the states on the status of the Excess Crude Account and it was advised that negotiations should continue pending the court decision on the matter,” he said.

Fayemi also said the council resolved that there was the need for the harmonisation of figures of external borrowing being sought by state governments.

He said the state governments were advised to reconcile the figures available at the Ministry of Finance with the ones available at the National Assembly.

Meanwhile, the Federal Government will need about N100bn to settle outstanding fuel subsidy claims by oil marketers.

The outstanding amount is said to be the sum of claims that had already been verified by the Ministry of Finance.

Dankwabo said government officials presented the figure to the council, while making submissions on the current fuel scarcity in the country.

He said about N881bn had so far been released to some of the marketers whose claims had been verified.

“Federal Government officials briefed the council on fuel scarcity in the country. They told the council that verification of claims by the suppliers is still ongoing. They said payment of up to N881bn was made so far after verification and that about N100bn was still needed for settlement,” he said.

The governor assured stakeholders that machinery was being put in place by the government to settle the outstanding claims so that sanity could be restored into the fuel distribution system in the country.

On the rehabilitation of federal roads, the governor said the council gave an assurance that states would be paid for all works done on federal roads.

Dankwabo said state commissioners were, therefore, advised to liaise with the Ministry of Finance on the guidelines and borrowing facilities in earnest.

The council was also said to have commended the Federal Government on the framework for the nation’s centenary celebration in 2014 and bought into the plan.

The NEC resolved that state governors should prepare their input to key into the programme before the end of 2012.

Elechi said the programmes for the celebration would commence early in 2013 and terminate in the first quarter of 2014.

On security, Fayemi said the council resolved that the Office of the National Security Adviser should proceed to collaborate with states and expedite action as regards the stoppage of the abuse of siren in states.

He said the resolution was based on the presentation made by the NSA, Col. Sambo Dasuki (retd.).

The Ekiti State governor said it was also resolved that security agencies should provide the guidelines for any state government that might decide to put in place complimentary security system such as vigilante groups.

“It was resolved that states should submit preliminary action on grazing land and security agencies should ensure procurement of tracking equipment to support operation of vigilante groups,” he added.

On the needs in the education sector, the council urged the committee it set up at its last meeting to consider the United Nations Educational, Scientific and Cultural Organisation’s report on education in its report, and directed that the report be submitted at its January 2013 meeting.