State governors, under the aegis of the Nigerian Governors’ Forum (NGF), are gearing up for a confrontation with President Bola Tinubu over the Federal Government’s refusal to share the Stamp Duty Fund, amounting to N3.8 trillion, with the 36 state governors and some consultants.
Sources within the NGF reveal that the governors are frustrated, believing that the Presidency is deliberately withholding the funds to further tighten their financial constraints.
“The governors have been holding meetings on this issue. They believe the Presidency is intentionally holding onto the funds, which are running into billions of naira, as it controls the agencies collecting the money. This is causing hardship in the states, as the governors need these funds to implement programs to mitigate the economic hardship in the country,” an NGF source stated.
The source added that the governors need the funds just as much as the federal government to cope with the rising costs of living and to implement state programs. They argue that the adverse effects of federal policies, such as the removal of the oil subsidy and the floating of the naira, are being felt at the state level.
A Northern governor, making efforts to get the funds released, expressed frustration that some of the President’s aides are obstructing the process.
“Even though the President has shown interest in releasing the funds, some of his aides are acting as fifth columnists, demanding part of the money for themselves and promising to influence the President only if such promises are made. This contradicts the administration’s mantra of a Renewed Hope Agenda, giving it a negative public image,” the source said.
The amount to be shared is approximately N3.8 trillion, with states expected to receive 73 percent, the federal government 14 percent, the Federal Inland Revenue Service (FIRS) 4 percent, coordinating consultants 5 percent, the legal team 2 percent, and Banking Honours and others 2 percent.
State Attorney Generals and Civil Society Organizations had previously taken the Federal Government to court to remit the stamp duty funds into state accounts. The case was settled out of court under former President Muhammadu Buhari, who committed to paying the governors, but the payment did not materialize before he left office.
With the current economic situation and the need for funds to execute programs, state governors are pushing harder for the release of the funds. A governor from the South-West has been reassuring his colleagues, promising that the President will release the funds before the end of next month.
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