The Commissioners for Finance of the 36 states of the federation have raised an alarm: The Federal Government has been overdrawing subsidy deductions by N85 billion monthly since January.
The commissioners, under the aegis of the Forum of Commissioners of Finance of Nigeria, said that instead of the N74 billion monthly deductions provided for in the 2012 budget, the Federal Government has deducted a total of N304 billion for January to February.
In a memo to the Nigerian Governors’ Forum, the commissioners said if the trend continues, the Federal Government will end up spending N1.9 trillion on subsidy this year.
The commissioners said that already, the Federal Government has deducted N477.233 billion from revenues due to the state.
The memo, signed by the Chairman of the Forum of Commissioners of Finance of Nigeria, Eze R. Echesi, reads in part: “If this trend continues for the next 12 months, this will amount to N1.909 Billion thereby making the 2011 figure a child’s play.
“It is equally noteworthy that total subsidy deductions for the first two months of 2012 is N304.003 billion which amount is already higher than 2011 approved Federal budget of about N240 billion.
“We have also been informed that the approved budget for 2012 fuel subsidy is N888 billion and this translates to N74.000 billion monthly. What is still not clear yet is whether this figure is meant to take care of both NNPC and PPPRA.”