The Accountant General of the Federation, Alhaji Ahmed Idris has encouraged Accountants-General of States to create additional sources of revenue generation in their various states.
Speaking on Friday in Uyo during the Annual Retreat of Forum of Accountants-General in Nigeria, Idris said creating additional sources of revenue will help them augment the monthly allocation from the Federation Account Allocation Committee ( FAAC).
He urged them to under study Lagos State in the area of revenue generation and accounting, noting that only Lagos state can pay workers salary monthly without depending on the FAAC allocation.
He stated that only a few states in the country were capable of executing expenditure beyond 50 percent without FAAC, adding that much of the distributable revenue from Value Added Tax (VAT) goes to Lagos.
Idris said this was because most of the VAT attracting businesses in the country were located in Lagos state and States deposits in the Deposit Money Banks (DMBs) are invested in Lagos.
He noted that the FG was concerned about the rate of dwindling revenue generation, saying that the Minister of Finance has put in place initiatives like Revenue Performance Management Framework (RPMF) and Strategic Revenue Growth Initiative (SRGI) to ensure speedy revenue enhancement.
“I emphasis the urgent need for you to create additional sources of revenue generation to augment your monthly allocation from Federation Account Allocation Committee
“You are all aware that aside from Lagos state, no other state can pay monthly salary to its workers without recourse to FAAC allocation. In fact, statistics has it that only few states in the federation would be able to execute expenditure beyond 50% without FAAC allocation.
“I encourage you to under study Lagos state particularly on the area of revenue generation and accounting. From my findings however, I discovered that the chunk of the distributable revenue from Value Added Tax (VAT) goes to Lagos state monthly.
“This is so because most of the VAT attracting businesses are based in Lagos and even the FAAC allocation that States deposit in Deposit Money Banks (DMBs) find their way to Lagos where they are invested.
“It is therefore paramount that you put up strategy of attracting investors to your respective states in a business that you have a comparative advantage. This will not only boost your revenue performance but also create employment opportunities for your teeming youth. It will also go a long way to reduce the incidences of kidnapping, Yahoo-yahoo boys and terrorism,” he stated.
Also speaking at the event, the Akwa Ibom State Governor, Mr Udom Emmanuel who was represented by the Secretary to the State Government, Dr Emmanuel Ekuwem, said he was hopeful that the retreat will open the forum to new realities of the profession and how to make the engine of governance operate smoothly.
He said the state is committed and will continue to invest heavily in the construction of roads, investments in education and health care delivery services, development in the tourism sector, and empowerment schemes for youths and women.
The theme of the four-day retreat is “Efficient and Effective Public Finance Management: Role of Accountants-General”.
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