Vice President Yemi Osinbajo has said that a minimum of N700billion must be generated and shared by the Federation Account Allocation Committee monthly to the three tiers of government to enable them meet up with obligations of salaries payment, statutory transfers and debt servicing.
Osinbajo said this in Abuja at the opening session of a two-day national workshop on alternative sources of revenue generation for sustainable development in states and local councils in Nigeria.
The vice president, who was represented at the event by the Minister of Finance, Mrs. Kemi Adeosun, said the huge funds required to run the programmes of government had made it imperative to find alternative sources of revenue.
He said over the years, the country’s over-reliance on statutory transfers from the Federation Account had resulted in the unsustainable culture where states were coming to Abuja every month to collect their share of revenue.
Osinbajo stated that the need to diversify the revenue base of the country had become inevitable because the oil sector was prone to lots of vulnerabilities.
For instance, he said in the period of oil prices, FAAC distributed as much as N909billion in June 2014.