Abia Pushes for Alternative Revenue Sources as Otti Hosts RMAFC Team

Governor Alex Otti has called for a concerted national effort toward alternative revenue generation, insisting that states must reduce dependence on crude oil allocations from the federation account.

Otti made the call while receiving a delegation from the Revenue Mobilization Allocation and Fiscal Commission, RMAFC, at the Government House in Umuahia during the commission’s nationwide data verification exercise for the review of the country’s revenue sharing formula.

Speaking on the importance of sustainable economic planning, the governor said resource generation was more critical than resource allocation and distribution.

“I’ve already heard the view that resource distribution and allocation is important, but resource generation is even more important,” Otti said.

The governor recalled that in 2018, while writing as a columnist for a national newspaper, he had raised concerns about the future of Nigerian states if crude oil eventually lost its global value.

“In one of my interventions, I argued that if we woke up one morning and oil had suddenly disappeared or dried up, or it was no longer a commodity that people wanted to buy, then we would have a problem,” he said.

He referenced the COVID 19 period when countries struggled to sell crude oil due to low global demand, describing it as a warning sign for oil dependent economies.

“Some countries were begging people to just come and carry crude oil because they were producing and nobody was buying,” the governor added.

Otti stressed the need for states to become financially independent through internally generated revenue and other sustainable economic models.

“It may not be today, but the time will come when there may be no money to share,” he warned.

The governor also noted that several countries have already set targets to phase out fossil fuel usage by 2040, urging Nigeria to align with global economic and energy realities.

He assured the RMAFC delegation of the state government’s cooperation and support for the success of the data verification exercise in Abia.

Earlier, Chairman of the Revenue Mobilization Allocation and Fiscal Commission, Dr Muhammad Shehu, said the visit marked the official commencement of a critical national assignment aimed at updating data used in revenue allocation among states and local governments.

Represented by the Federal Commissioner representing Ekiti State, Hon. Omowumi Ogunlola, the RMAFC chairman explained that the exercise was part of the commission’s constitutional responsibility to continuously review the revenue allocation formula in line with changing realities.

He appealed for the support of the Abia State Government in providing access to relevant data, records, and liaison officers to ensure credible verification and data collection.

The commission also commended Governor Otti’s leadership style and welfare driven policies, particularly in areas affecting women and vulnerable groups.

Abia State Commissioner for Finance, Mr Uwoma Ukandu, disclosed that the RMAFC team had been in the state since Sunday and was assessing efforts by the government to improve revenue generation, especially in the health and education sectors.

The delegation included the Federal Commissioner representing Abia at the commission, Mrs Linda Nkechi Oti. Also present at the meeting were the Chief of Staff to the Governor, Pastor Caleb Ajagba, and other government officials