AbIa State Governor, Dr Alex Otti, has called on state governments across Nigeria to prioritise economic self-sufficiency and strengthen internally generated revenue, warning that continued dependence on federally shared oil revenues may not be sustainable in the long term.
Governor Otti stated this on Wednesday at his office in Nvosi, Isiala Ngwa South Local Government Area, while receiving a delegation from the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
The RMAFAC delegation are in Abia State to commence a nationwide data verification exercise aimed at updating records used in revenue allocation among the three tiers of government.
The Governor who reaffirmed Abia’s support for the exercise, stressed that the more critical challenge facing states was how to build resilient economies capable of generating sufficient revenue independently.
He noted that although allocations from the Federation Account remain significant, states must begin to prepare for a future in which oil revenues may no longer provide the financial lifeline they currently enjoy.
“I’ve already held the view that resource distribution and allocation is important, but resource generation is even more important.
“A more fundamental issue would be how do we now make our states independent and have them to be able to generate enough revenue just in case they have no money to share. It may not be today, but it will happen someday”, Governor Otti added.
Governor Otti assured the commission of the state’s cooperation in the ongoing verification exercise, saying relevant ministries, departments and agencies had been directed to provide all required information and support.
“We are happy that you are here on this national data verification exercise, and you can be sure that our team would provide you with all the support and every information that you require,” he said.
The governor also highlighted the entrepreneurial capacity of Abia people, describing the state as a hub of commerce, innovation and industry.
He encouraged members of the visiting team to explore various economic centres across the state to gain a deeper understanding of its productive potential.
Earlier, the team leader and Federal Commissioner representing Ekiti State in the RMAFC, Hon. Omowumi Ogunlola, said the commission had commenced a nationwide exercise to verify and update data used in determining revenue allocation to states and local government councils.
According to her, the exercise is part of the commission’s constitutional responsibility to review the revenue allocation formula and ensure that the indices used for sharing national resources reflect current realities.
“Your Excellency, this visit officially launches the critical national assignment of verifying and updating the data used in revenue allocation among Nigerian states and local government areas”, Ogunlola said.
She explained that the ongoing review of the revenue allocation formula had reached an advanced stage, making it necessary to validate the integrity and accuracy of the underlying data before a final framework is adopted.
Ogunlola also commended the Abia State Government for its developmental strides and appealed for continued collaboration to facilitate the successful completion of the exercise across the state.
