The deepening revenue crisis facing the Federation Accounts Allocation Committee (FAAC) for over 18 months is helping to refocus the attention of Governor Adams Oshiomhole on Internally Generated Revenue (IGR) in Edo State.

For several months, the allocation to the state from FAAC has been on the downward trend, hampering developmental strides of the Oshiomhole administration. In the last allocation, the state lost well over N2 billion. An average of N1.5b monthly is being generated as IGR.

As one of the oil producing states, Edo is getting the least allocation from the federation account,  not enough to meet the developmental challenges.

The minister of state for finance, Alhaji Bashir Yuguda, while speaking at the FAAC meeting in July, blamed the decline in the amount which accrued to the federation account on oil theft and vandalisation of oil pipelines in parts of the country.

Oshiomhole admitted that the situation is very challenging and outlined the state’s coping strategies: “We have been able to pay workers and pensioners salaries and are meeting our other financial obligations during this turbulent period because of our being very prudent.

Edo has been able to raise  Internal Generated Revenue (IGR) from N500 million to above N1 billion monthly.” With a meagre monthly allocation of an average of one billion naira from the federation account and an internally generated revenue of little above one billion naira a month, the governor has maintained a motivated workforce paid as and when due; built, renovated and reconstructed primary and secondary schools across the state; rehabilitated and constructed health facilities; built and reconstructed roads and streets designed and completed with covered drains, walk ways and street lights; provided communities across the 18 local government areas in the state with portable water and electricity as well as flood control, environmental sanitation and beautification.

Benin City, the Edo State capital, is undoubtedly a cleaner, safer, orderly and beautiful city compared to the decay of the past. Compared with other Niger-Delta oil producing states’ huge monthly allocation of an average of N20 billion and internal revenue receipt of eight billion, Oshiomhole, by all standards, qualifies to be termed a genius in financial management, prudence, accountability and transparency.

Meanwhile the governor has stressed the need for government and security operatives to stop oil theft and pipeline vandalisation in the country since the Federal Government continues to blame the revenue shortfalls on these factors. The Federal Government must find a lasting solution to this problem in order to ensure prompt payment of civil servants salary and delivery of developmental projects across the country for the benefit of the people.

In Edo, more than half of our allocation goes to  civil servants who are less than two per cent of the population of the state. And we have a bad culture of not paying tax but we have a unique culture in Edo State which expects government to do everything for them.

Lack of stringent punishment for oil thieves is part of the factors responsible for the rising wave of criminal activities in the Niger Delta.  The huge financial gain in illegal bunkering is another factor responsible for the persistent oil theft in the Niger Delta. I have always advocated a special court to try offenders as part of the measures to fight the menace.

Inwalomhe Donald is of the Justice Research Centre, Benin City, Edo State