GOVERNMENTS in virtually all the 36 states of the federation have embarked on alternative ways of generating funds to run their administration as they groan over delay in the release of the monthly statutory revenue allocation by the Federal Government.

Though, the Federal Government denied it was responsible for the late payment of workers’ salaries and allowances in the states of the federation, state governments had held the central government responsible attributing to the late release of the monthly statutory allocations to states and the 774 local government councils.

Nigerian Tribune checks in states across the federation revealed that civil servants received their salaries late in the months of May and June, 2012.

Apart from late payment of salaries of workers, some states have halted work on ongoing projects, while contracts for new projects have also been kept in abeyance.

Some states have also embarked on aggressive tax drive to make up for the shortfall in their revenue, while a few ones are dipping hands into their savings to pay salaries of workers.

Reacting to the alleged delay in the release of the monthly allocation, Minister of State for Finance, Dr Yerima Lawan Ngama, denied that the Federal Government was responsible for the delay in payment of workers’ salaries in states and local councils.

According to him, “it is not true that the Federal Government is delaying the release of statutory allocations to states.  Our major source of funds is the sale of crude oil. At times, there may be delay before the money accruing from the sale of oil is received, and the Federal Allocation Appropriation Committee (FAAC) meetings are not held unless there is money in the account.”

Dr Ngama explained that as a way of dousing the insinuation by some people that the country was broke, “the FAAC meetings had to be shifted from the 12th and 13th day of every month to the 18th and 19th day of every month during which all revenues from oil would have been in government kitty.”

According to the minister, “FAAC meetings are not held unless there is money to be shared,” stressing that within 48 hours after FAAC meetings, “the money is usually released to the states and local government councils.”

Kwara State Commissioner for Finance, Honourable Ademola Banu, who attributed the delay in payment of workers’ salaries to the late release of statutory allocation, said that the state had embarked on aggressive internal revenue drive, adding that, “we are carrying out enumeration of the informal sector and dragging them into the tax net.

“We are also making efforts by collaborating with the Federal Government to ensure that tax payers are well identified and captured so that corporate organisations and individuals pay the appropriate tax.”

He further said that, “the government is also partnering with the private sector and creating a conducive environment for business to thrive, thereby increasing economic activities.  Recently, the state executive council approved the consolidation of all state investments in all revenue generating companies like KIPDC, Kwara Motel and Kwara Ethnix Furniture under Harmony Holding Limited.”

Similarly, Edo State government has embarked on aggressive tax drive, the proceeds of which are being used to either support the shortfall or make up in the event of delay in statutory allocation from the Federal Government.

The Adams Oshiomhole-led administration, according to report, has been supporting the shortfall from the tax drive which has shored up the state finances.

In Ekiti State which is said to rank lowest in the federal allocation ladder, there was delay in the payment of June salaries and allowances of workers and political office holders.  The workers, as a result, embarked on a four-day warning strike but the strike was shelved as government officials pleaded with the workers, attributing the late payment to the delay in the release of monthly allocation.

Though, the state Commissioner for Finance, Mr Dapo Kolawole, remained elusive, his counterpart in the information and civic orientation ministry, Mr Funminiyi Afuye, said that the state had been coping well as the internally generated revenue had been raised from N100 million to N600 million per month.

Afuye said: “Prudent management of our resources has kept us on track and that has been the major reason the state government has been able to keep its social contract with the people of the state. The improved internally generated revenue had also helped in these trying times.”

Benue and Enugu State governments have also embarked on aggressive revenue drive, to make up for the delay in the release of federal allocation.

Benue State Commissioner for Finance, Mr Omadachi Oklobia, declined comments on the lean resources of the state, but the state chairman of Internal Revenue Board, Mr Andrew Ayaban, said the board was making efforts to boost the revenue.

According to him, “the state is going to introduce some levies such as development tax. As a result, adult will pay a little amount. If one million adults pay a little amount for the roads, water and other social amenities they enjoy as residents, it will boost the revenue of the state.”

Nigerian Tribune also gathered that the state Ministry of Finance was working out modalities that would boost the revenue base, to supplement the monthly allocation from the Federal Government.

However, Kano, Borno, Niger and Kaduna states have dug hands into their respective savings, which was made when the state of finance was good.

Kano State government said it had over N20 billion in its savings account last year, adding that “even without getting allocation promptly from the Federal Government, the state government can conveniently borrow money from its savings to cater for salaries and allowances of workers and refund it back to the state coffers when allocation is made by the Federal Government.”

The state governor, Dr Rabiu Kwankwaso, who said he inherited 43,000 workers from the previous administration, disclosed that the state flushed out about 8,000 workers, thereby saving a huge amount of fund which would have been spent on some faceless civil servants.

Niger State Commissioner for Finance, Alhaji Mu’azu Mohammed Bawa, said the state had fallen back on the savings it made from its resources since May 2007, when the incumbent governor, Dr Mu’azu Babangida Aliyu, assumed office.

He, however, noted that the state government was partially broke, saying that “when a state touches its savings on a regular basis, that state can be considered as broke.”

The Commissioner for Finance in Borno State, Yunus Baba Mairami, said the state government had been meeting its obligations through prudent management of resources and good planning, adding that the government had also made some savings in the event of any unforseen contingency.

Kaduna State Commissioner for Finance and chairman, Kaduna Tenders Board, Dr John Ayuba, at the public opening of tender in the state, said the state had money to pay its workers and execute projects.

According to him, “Governor Patrick Yakowa wants to assure that in spite of all the challenges of security that we have today, government will not shut down and one of the things we are doing is to ensure that the dividends of democracy that he has promised the people of Kaduna State is delivered.”

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