Otti warns against Nigeria's excessive dependence on oil revenue

From Okey Sampson, Umuahia

Abia State Governor Dr Alex Otti has warned against Nigeria’s excessive dependence on oil revenue, saying it poses long-term risks, especially as global economies continue to transition away from fossil fuels.

Governor Otti gave the warning in his office while receiving a delegation from the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), which was in the state as part of a nationwide data verification exercise aimed at reviewing and updating the data used in revenue allocation between the federal government, states, and local government areas of the country.

“I have always held the view that resource distribution and allocation are important, but resource generation is even more important. We will continue to enjoy the part while it lasts.

“What I am saying is that this is okay for now. But a more fundamental issue is how we make states independent and have them generate enough revenue just in case they have no money to share? It may not be today, but it will happen someday,” Otti said.

The Governor, while assuring the delegation of his administration’s full support for the exercise, disclosed that relevant ministries, departments, and agencies (MDAs) had already been directed to provide all necessary information and support required for the successful conduct of the verification exercise.

“We are happy that you are here on this national data verification exercise, and you can be assured that our team will provide you with all the support and information you require.”

He emphasised that while equitable revenue allocation remains important, greater attention should be given to strengthening internal revenue generation and building economically sustainable states.

The team lead and the federal commissioner representing Ekiti State at the RMAFC, Hon. Omowumi Ogunlola, had earlier, while delivering the chairman’s address, said the team was in Abia State for the formal commencement of the nationwide data verification exercise being conducted across the federation.

She appealed to the state government to provide access to relevant data and records, designate competent liaison officers to work with the Commission’s team, facilitate access to local government areas, and ensure a conducive environment for the exercise.

“Your Excellency, this visit formally marks the commencement of the critical national assignment of verifying and updating the data used in revenue allocation between the national government, states and local government areas.

“This exercise is being undertaken in line with the Commission’s constitutional mandate under the 1999 Constitution, which empowers it to continuously review the revenue allocation formula to reflect changing realities,” she stated.

Ogunlola noted that Nigeria’s revenue allocation system was built on a set of parameters and indices designed to ensure fairness, equity, and justice in the distribution of national resources.

“It is therefore imperative that the data underpinning these indices are periodically verified and updated to reflect present-day realities.

“The ongoing review of the revenue allocation formula has reached an advanced stage, making it necessary to validate the integrity and accuracy of the data that will ultimately guide the distribution of revenue across the Federation,” she added.

The team lead commended Governor Otti for his achievements in the past three years in office.