By Abigail Philip David
Bauchi State Governor Bala Mohammed has accused the Federal Government of failing to properly remit oil revenue to the Federation Account, preventing state governments from benefiting from improved earnings in the oil sector. Speaking during a visit by Finance Minister Wale Edun at the 2024 National Council on Finance and Economic Development conference in Bauchi, Mohammed, who chairs the PDP Governors Forum, called for transparency in the handling of oil revenues.
Mohammed criticized the lack of benefits for states despite Nigeria being a major oil-producing nation. He said, “It’s a miracle that we are one of the biggest oil producers, yet we have not seen benefits. The Federal Government must ensure revenues from oil and gas are properly remitted for equitable distribution among the tiers of government.”
The governor acknowledged that fuel subsidy removal had improved NNPCL’s remittances, but argued the benefits had not trickled down. NNPCL, Nigeria’s national oil company, confirmed earlier this year that the end of subsidies allowed it to remit ₦4.5 trillion to the Federation Account in the first nine months of 2023, and ₦431 billion in the first seven months of 2024. However, stakeholders have expressed concerns over insufficient disbursement to states.
APC Responds
The ruling APC dismissed Mohammed’s claims as unsubstantiated. Deputy National Organizing Secretary Nze Chidi Duru urged the PDP governors to provide evidence of revenue shortfalls. “Opposition views are welcome, but they must be constructive and evidence-based. Senator Mohammed should present facts, not generic accusations,” Duru said.
He emphasized that the Tinubu administration has allocated more funds to states and local governments than previous governments. Duru added, “This is the first time in our history that significant funds are reaching all levels of government. It’s important to assess how these resources are being utilized.”
Duru also called on the PDP to identify any revenue leakages. “If there are gaps in remittances, the Federal Government will address them. Constructive feedback will help improve accountability and revenue collection,” he said.
NNPCL Silent on Claims
Efforts to reach NNPCL spokesperson Femi Soneye for clarification were unsuccessful, as calls and messages went unanswered.
The debate underscores ongoing tensions between the two major political parties over fiscal responsibility and revenue allocation, with both sides calling for greater transparency and accountability in oil sector management.
