State governors, under the aegis of the Nigerian Governors’ Forum are preparing for a confrontation with President Bola Tinubu regarding the Federal Government’s refusal to distribute the Stamp Duty Fund to the 36 state governors and certain consultants.
This fund, amounting to about N3.8 trillion, is crucial for the states’ financial health.
The NGF sources indicate that the governors are frustrated because they believe the Presidency is intentionally withholding the funds to put them under financial strain.
“Already, the governors have been holding meetings on the matter. The thinking is that the Presidency is intentionally holding on to the funds, running into billions of naira because it is the one controlling the agencies collecting the money. This is causing hardship in the states, as the governors also need such funds to implement programmes to cushion the effects of the economic hardship in the country,” said a source from NGF.
The contention over the Stamp Duty Fund stems from the economic challenges facing Nigeria, exacerbated by the removal of oil subsidies, the floating of the naira, and other federal policies. The state governors argue that they require their share of the fund to address these challenges.
“It is not only the federal government that needs more money to implement its programmes, the states also do. The governors are insisting that the fund be released to enable them cope with the escalating consequences of high cost of living in the country. We are all witnesses to the fallouts of the oil subsidy removal, the floating of the naira and some policies of the federal government on the people,” added the source.
A Northern governor has been particularly vocal about the issue, accusing some of the President’s aides of obstructing the release of the funds.
“Even after the President has shown interest in releasing the money, some of his aides are playing the role of fifth columnists. They want to arm twist the governors to be given part of the money, and that it is only when such a promise is made that they can prevail on the President to release the fund. This is an administration which came on board with the mantra of Renewed Hope Agenda. Such actions are giving the administration negative public image,” he expressed.
The distribution of the N3.8 trillion fund is meant to allocate 73 percent to the states, 14 percent to the federal government, four percent to the Federal Inland Revenue Service, five per cent to coordinating consultants, and the remaining two percent to the legal team and Banking Honours among others.
The dispute over the Stamp Duty Fund initially led to legal action by the Attorney-Generals of States and Civil Society Organisations against the Federal Government. The case, marked SC/CV/690/2021, revolved around whether states had the authority to collect stamp duties on transactions involving individuals within their jurisdictions. The conflict was temporarily resolved out of court when former President Muhammadu Buhari promised to pay the governors their share of the proceeds, but this commitment was not fulfilled before he left office.
Amid the current economic crisis, the need for these funds has become more pressing. Governors are looking to the fund to support their state programs. A governor from the South-West has been reassuring his colleagues that President Tinubu will release the funds before the end of the next month.
