Okonjo-Iweala Warns Against Heavy Dependence on FAAC Allocation
By Adedapo Adesanya
Ahead of the May 29 inauguration, the Director-General of the World Trade Organisation (WTO), Mrs Ngozi Okonjo-Iweala, has advised incoming governors to stop depending on crude oil and diversify the sources of revenue in their respective states.
She spoke on Monday during an induction organised for elected governors in Abuja, two weeks before the inauguration.
According to her, states with over-dependence on the monthly Federation Account Allocation Committee (FAAC) would be badly hit because there have been erratic outcomes from allocations over the years.
She said, “We need to start preparing now for a time when our oil and gas will no longer serve us as the main sources of revenue. States with a heavy dependence on FAAC allocation will be particularly hit.”
“It is important that you governors start now to diversify your revenue sources. We ought to be seeking to double our growth rate and sustain that higher growth until we attain upper middle-income status,” she added.
The WTO boss also urged the governors-elect to rebuild trust through their policies and programmes to regain the support of Nigerians.
She explained that a lot of trusts had been broken after the 2023 general elections, which reportedly had a lot of disenfranchisement and violence.
“Honourable governors, let us be candid: trust in Nigeria has always been fragile, but following the elections, a lot of trust has been broken.
“Through your words, deeds, and policies, you need to demonstrate to Nigerians that they are equally loved. That they can settle and do business in any part of the country without fear. I love Nigeria deeply, and I want to feel welcome in any part of this country,” she added.
Mrs Okonjo-Iweala also tasked the incoming governors to confront challenges on the fiscal side and emerging global challenges.
She also said they should seize opportunities in global value chains and in the digital space.