Governor Babatunde Fashola says he is suing the President Goodluck Jonathan-led Federal Government over illegal deduction of one per cent from statutory allocation to states in the federation.
The governor disclosed this on Monday while presenting the nation’s grim financial standing before members of the State House of Assembly in Lagos, western Nigeria.
The governor said the decline in revenue was also credited to decline in oil production, which was adduced to pipeline vandalism and crude oil theft and that the debate on accounting on crude oil is out there.
Fashola lamented that since October last year the Federal Government had been deducting one per cent from states’ statutory allocations which was said to be for police reform, describing it as unconstitutional and vowed to challenge it in court.
He said he was told that the National Economic Council took the decision but stressed that despite this, he believed that it is an unconstitutional decision.
Fashola stated that he had written the Federal Government to complain about his opposition to the decision and that the state is heading to the court since he did not receive any reply to his letter, stressing that “the Economic Council has no such powers.”
He also complained that the Nigerian National Petroleum Corporation, NNPC, under-remitted the sum of N2.4 trillion to the federation account, saying that the situation meant that no state of the federation would be able to meet its target for the year 2014 as the 36 states are reeling in serious financial constraint.
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