- Says Cross River receives N500m monthly over loss of Bakassi
BY EDMOND ODOK – The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has recommended the disbursement of over N10 billion from the Stabilization Fund to various states in the last two years.
According to the Chairman of the Commission, Mohammed Shehu, the recommendation was in line with the provision of section 5(7) of cap A15 LFN 2004 under which the stabilization fund was established, and empowers the Commission to work out an acceptable threshold from the stabilization account.
A statement by the Public Relations Officer of the Commission, Nwachukwu Christian quoted the RMAFC Chairman as saying that Cross River State is one of the States that has continuously benefitted from the Fund.
Further explaining that Cross River has been receiving N500 million monthly from the Stabilization Account since 2008, the Commission Chairman said the arrangement was part of the Federal Government’s effort to settle and stabilize the displaced Nigerians who relocated from the Bakassi Peninsula to the State after Nigeria ceded the Peninsular to the Cameroonian government in 2008.
The revenue decline of Cross River State from the offshore oil wells was also cited as the reason for the monthly payment to compensate the state which lost its oil-producing status after the ICJ judgment with the Akwa Ibom state government becoming the beneficiary of those oil wells.
The RMAFC boss further stated that the Act which established the Fund was specifically for any state of the Federation that suffers an absolute decline in its revenue arising from factors outside its control.
He said in such clear cases, the stabilization fund shall be used to initially augment the allocation to that state in accordance with an acceptable threshold to be worked out by Commission.
