Governors Accuse Presidency Of Withholding N3.8 Trillion Stamp Duty Fund Amid Economic Hardship

Sources within the NGF indicate that the governors are increasingly frustrated, believing that the Presidency is deliberately withholding these funds to exacerbate their financial struggles. This perception is causing significant discontent among the governors, who argue that the withheld funds are essential for implementing state-level programs to alleviate economic hardship.

“Already, the governors have been holding meetings on the matter. The thinking is that the Presidency is intentionally holding on to the funds, running into billions of naira because it is the one controlling the agencies collecting the money. This is causing hardship in the states, as the governors also need such funds to implement programmes to cushion the effects of the economic hardship in the country,” a source said.

A Northern governor, who has been actively advocating for the fund’s release, expressed frustration over the situation. He claims that certain aides of the President are obstructing efforts to distribute the money, despite the President’s expressed interest in doing so.

“Even after the President has shown interest in releasing the money, some of his aides are playing the role of fifth columnists. They want to arm twist the governors to be given part of the money, and that it is only when such a promise is made that they can prevail on the President to release the fund. This is an administration which came on board with the mantra of Renewed Hope Agenda. Such actions are giving the administration negative public image,” he added.

The N3.8 trillion fund is intended to be divided among the federal government, the 36 states, and various agencies. The allocation is proposed as follows: states would receive 73 percent of the fund, the federal government would get 14 percent, the Federal Inland Revenue Service (FIRS) would get four percent, coordinating consultants five percent, legal teams two percent, and Banking Honours and others two percent.

The Attorney-Generals of States and several Civil Society Organisations have taken the Federal Government to court, demanding that the funds generated through Stamp Duties be remitted into state accounts. This legal action underscores the urgency and importance of the issue, as states struggle to cope with the economic challenges exacerbated by federal policies such as the removal of oil subsidies and the floating of the naira.

The ongoing dispute highlights the broader tensions between state and federal authorities in Nigeria, as governors push for financial autonomy and the resources needed to address local economic conditions effectively.

Published by Caleb Alfred