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Experts seek end to overreliance on federation account

Experts seek end to overreliance on federation account

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Some finance and economic experts, on Friday, advocated the restructuring of the economy in a way that would enable  states to have control over their resources.

They said this would help to check situations where many of the federating units would have to always wait for allocations from the federation account before they could carry out obligations such as salary payments and project execution.

Those that spoke to our correspondent in separate telephone interviews are a former Managing Director, Unity Bank Plc, Mr. Rislanudeen Mohammed, and a former Managing Director, Nigeria Deposit Insurance Corporation, Ganiyu Ogunleye.

There had been disagreement in recent times between the Federation Account Allocation Committee and the Nigerian National Petroleum Corporation as a result of revenue underpayment to the federation account.

This year alone, the meeting had ended in a deadlock on four different occasions due to what the committee described as the inability of the Nigerian National Petroleum Corporation to meet its revenue obligations to the three tiers of government.

The inability of the committee to agree on revenue remittances by the NNPC forced an indefinite postponement of the meeting last Wednesday.

The implication of this development is that most states may not be able to pay the June salaries of their workers on time.

Rislanudeen told our correspondent there was no need for states to wait for revenue allocation from the centre if the Federal Government had come up with laws that would enable them to exploit their resources for the benefits of the people

He said the country’s over dependence on oil as a major source of revenue was hurting the economy.

He said, “We need to focus on policies that support backward and forward integration and seek to make agriculture as a business rather than just for self-sufficiency.”

Ogunleye told our correspondent that restructuring the economy would help address the socio-economic challenges facing the country, adding that once the federating units were given the powers to control their resources, it would help promote economic competition.

He said with competition, the federating units would come up with innovative ways of stimulating their respective economies.

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