Bauchi State Governor Bala Mohammed has accused the Federal Government of failing to properly remit revenues generated by the oil sector to the Federation Account, depriving states of their rightful share. Mohammed, who also chairs the Peoples Democratic Party (PDP) Governors’ Forum, demanded transparency and accountability regarding the oil earnings.
Speaking during a courtesy visit by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, ahead of the 2024 Conference for the National Council on Finance and Economic Development in Bauchi, Mohammed criticized the current administration’s handling of oil revenue.
“It’s a miracle that we are one of the biggest oil-producing nations, but we have not benefited for some time since you came on board,” Mohammed said. “You must provide financial services to us at the subnational level to enhance productivity and ensure these resources are used wisely. Without us, there will be no Federal Government.”
The governor emphasized the need for the Federal Government to clarify why revenues from the oil sector, managed primarily by the Nigerian National Petroleum Company Limited (NNPCL), are not adequately distributed among the three tiers of government.
NNPCL’s Role and Revenue Challenges
The NNPCL, which oversees crude oil sales, reported zero contributions to the Federation Account in 2022 due to fuel subsidy payments on Premium Motor Spirit (PMS). However, following the removal of subsidies, the NNPCL disclosed it contributed N4.5 trillion to the Federation Account between January and September 2023. In the first seven months of 2024, the company remitted N431.06 billion.
Despite these improvements, stakeholders, including Mohammed, argue that states have yet to see tangible benefits from the increased revenue, particularly given the significant hike in petrol prices by 490% under the current deregulated regime.
APC Responds to PDP Claims
The ruling All Progressives Congress (APC) dismissed Mohammed’s allegations, urging him to provide concrete evidence to substantiate his claims. In an exclusive interview, APC Deputy National Organizing Secretary Nze Chidi Duru called the accusations unsubstantiated and politically motivated.
“Our call at all points in time is that opposing views are welcome, provided they are constructive and not merely aimed at playing to the gallery,” Duru said. “Senator Mohammed must put down evidence for further elaboration. This administration has ensured transparency in revenue allocation, with more funds reaching states and local governments than ever before.”
Duru further argued that similar claims in the past were baseless and suggested that opposition figures should focus on highlighting systemic issues to improve national revenue management.
NNPCL Silent on Controversy
Efforts to reach NNPCL spokesperson Femi Soneye for clarification were unsuccessful, as he did not respond to calls, messages, or emails.
As debates over revenue allocation persist, analysts suggest the issue underscores the need for greater transparency and collaboration between the Federal Government and subnational entities to ensure equitable distribution of resources.
