Speaking during a visit by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the Government House in Bauchi, Bala Mohammed called for transparency.
Bauchi, Nigeria — Bauchi State Governor, Bala Mohammed, has expressed concerns over the lack of remittance from the oil sector into the Federation Account, stressing that state governments have yet to benefit from the surge in oil revenue.
Governor Mohammed, who also serves as the Chairman of the Peoples Democratic Party (PDP) Governors Forum, urged the Federal Government to clarify why the substantial revenues generated are not adequately distributed among the tiers of government.
Speaking during a visit by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the Government House in Bauchi, the governor called for transparency. The visit occurred ahead of the 2024 Conference of the National Council on Finance and Economic Development (NACOFED), currently taking place in Bauchi State.
“It’s nothing short of a miracle that we are one of the biggest oil-producing nations, yet we have not benefited for some time since you assumed office,” Governor Mohammed said. He pressed for financial accountability and emphasized that proper remittances are essential for subnational financial stability. “You must provide financial services to us that can enhance our productivity and ensure that revenues are used wisely,” he added.
The Nigerian National Petroleum Company Limited (NNPCL) has been a key revenue-generating body for Nigeria, responsible for crude oil sales and other operations. However, the company’s remittances to the Federation Account have been problematic. In recent years, NNPCL cited fuel subsidies as a major obstacle, leading to zero remittance in 2022. Subsidy payments, which drained resources, prevented the firm from paying taxes, royalties, or generating profit.
Umar Ajiya, the former Chief Financial Officer of NNPCL, confirmed earlier this year that subsidy removal had finally allowed NNPCL to resume remittances. According to NNPCL, the company contributed N4.5 trillion to the Federation Account between January and September 2023. In the first seven months of 2024, the company further added N431.06 billion.
Despite these developments, Governor Mohammed argued that the financial benefits have not been evident at the state level. He highlighted the lack of improvement in disbursement, even with the removal of fuel subsidies, which resulted in a 490 percent increase in petrol prices.
In response, the All Progressives Congress (APC) criticized Governor Mohammed for his remarks, demanding evidence to substantiate his claims. APC’s Deputy National Organizing Secretary, Nze Chidi Duru, challenged the governor to provide concrete proof. “Opposing views are welcome if they are constructive and based on facts, not just aimed at public grandstanding,” Duru said in an interview with The PUNCH.
Duru emphasized that under President Bola Tinubu’s administration, states and local governments have received more allocations than ever before. “This is the first time in our history that significant funds have been disbursed to all tiers of government,” he stated. He urged opposition leaders to focus on highlighting specific issues rather than making generic allegations.
He added, “The APC government is open to constructive criticism. If there are recognizable loopholes that need to be plugged to bring in more revenue, we welcome such feedback. These funds are meant for national distribution, not just for the federal government or the APC.”
Duru dismissed previous alarms raised by opposition leaders as unsubstantiated and called on the PDP governors to be specific in their criticisms. He also noted the importance of transparency in managing the funds allocated to various states and local governments.
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