Okonjo-Iweala Finally Agrees: Our Economy Is Having Troubles

                    

The crisis arising from shortage of revenue to the Consolidated Revenue Fund, which led to a deadlock in the Federation Accounts Allocation Committee (FAAC) meeting last week, has deepened: there was still no money to share to the three tiers of government on Monday.

The FAAC meeting, which reconvened after penultimate Friday’s failed attempt, could still not hold due to lack of funds in the federation account for distribution to the three tiers of government. But the Minister of Finance, Ngozi Okonjo-Iweala had earlier said "I dey kampe".

The 36 state finance commissioners were invited to the meeting on Monday only to be told by the accountant-general of the federation (AGF), Mr Jonah Otunla, who presided over the meeting, that there was still no money to share. There is serious confusion.

Besides allocation for the month of August, there are arrears of about N75 billion owed the states between February and July, which are yet to be paid.

Ebonyi State commissioner of finance and chairman, Finance Commissioners’ Forum, Mr Timothy Odah, while reacting to the development said: “We told them not to invite us again until all issues are settled. Today by 8am the AGF called me that the minister asked him to preside. He said I should come with the commissioners. I made calls to some of them and we went to him. We are just coming back from him.”

Timothy Odah explained that the AGF appeared very confused as to why the minister of state for finance had convened the meeting when he knew that no money had been remitted into the federation account. 

“In fact, he (AGF) was more confused than anybody,” Odah stated. “He said he wants to let us know that there is no change. We asked him the need for the invitation and he said the minister asked him to invite us. AGF cannot give what he does not have, there is no improvement. The minister is nowhere to be found, the press is saying he travelled to Egypt.”

Mr Odah said it would be the second time in the month of September that the FAAC session would end in a stalemate, adding that they were invited by the minister of state for finance but they have not seen him as “only the AGF addressed a few of our executives and told them nothing was available”.

Speaking on the issue, the coordinating minister for the economy and minister of finance, Dr Ngozi Okonjo-Iweala, finally confessed that Nigeria is experiencing troubles in its revenue.

“We have experienced occasional revenue shortfalls. Even a person managing a household knows that, in a particular month, there could be cash crunch. School fees might come at a particular point or some other payments and you would feel squeezed at that time. But you know that you are still in a strong position to continue to manage your family. Just think of that analogy; that is where we are right now.”