Oyedele: FG gets only 15% of Nigeria’s resources while states take 85%

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, says subnationals receive about 85 percent of Nigeria’s resources, leaving the federal government with 15 percent despite its extensive responsibilities.

Speaking on Wednesday at Chatham House in London, TheCable reports, Oyedele said the federal government is the most deprived tier, yet handles defence, internal security, foreign affairs and elections, and also gets involved in basic education and primary healthcare.

“Based on data, the center is the most deprived of resources yet it has the most responsibilities. Of all Nigerian resources, roughly 85 percent are assigned to subnational. Only 15 percent to the federal government,” Oyedele said.

“In Nigeria, the federal government collects no income tax from individuals.”

He said 90 percent of VAT goes to states and 10 percent to the federal government.

Oyedele said the federal government plans to transfer some responsibilities to states, better placed to handle them, while boosting its own revenue generation without adding to Nigerians’ burden. It could then fund states for basic education, agriculture and farm-to-market roads through federal transfers.