Wednesday, 26 October 2011

Fashola attacks FG over N1.2trnunlawful expenses on fuel subsidy

IKEJA – Lagos State Governor, Mr.
Babatunde Fashola, yesterday, expressed
his disapproval over alleged unlawful
spending by the Federal Government,
stressing that the government had
exceeded the approved N240 billion for the
year on fuel subsidies with an additional
N1.2 trillion by the end of last month.
Speaking to newsmen at Murtala
Muhammed Airport, Lagos, Fashola
noted that additional N1.2 trillion would
have been placed in the Federation
Account, adding that such amount could
have constituted an asset to the 36 states
and the local governments in the country.
He said: “The money has gone without
lawful authorities to spend it and without
consultation with the stakeholders, that is
the federating units.”
Fashola noted that the federal revenue
allocation formula was such that the
central government keeps 52 per cent of
the revenue while the states gets 36 per
cent and the local governments are left
with 20 per cent, stressing that alteration
to the third tier of government cannot
fast-track meaningful development at
the council level.
The governor said: “Now, if you have a
local government structure and a
federation revenue allocation formula
where the national government keeps 52
per cent of the revenues, the 36 states
shares 26 per cent and the local
governments, 774 of them, are left to
share just 20 per cent, just think of it,
can they make any progress?
“The local governments, which are closest
and most impactful to the people have the
least revenue,” he added.
The governor , who noted that local
governments were responsible for primary
health care and education to the local
populace, said they were saddled with
responsibilities beyond their capacities.

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