Federation Account: Fashola demands N16bn refund
Written by Soji Ajibola, Lagos Thursday, 12 July 2012
The Lagos State government, on Wednesday, asked for the refund of the N16 billion deducted from its monthly allocation from the Federation Account over its investment in the power sector.
Making the demand while receiving the visiting members of the Senate Committee on Privatisation led by Senator Gbenga Obadara, the state governor, Mr Babatunde Fashola, lamented the way and manner the Federal Government handled issues concerning the state, submitting that the state had been unjustly treated in the ongoing privatisation exercise.
He asserted that if the nation must make a success of the privatisation exercise in the power sector, it must start from Lagos.
He further said “perhaps, the first thing I will say is that our state has been unjustly treated in this federation, especially when it comes to the privatisation of assets.
“We have consistently been given the short end of the stick. Given our contribution to national economy, there has been no reciprocity. Our assets and lands have been servicing the nation; we had these lands to ourselves before they were acquired by the Federal Government for government business and we are saying, if they are no longer serving government business we are supposed to take our lands back.”
Explaining the genesis of the N16 billion illegal deductions, Governor Fashola said, “we invested in power plant. The power was not dedicated to Lagos but they have deducted about N16 billion of our money in spite of court orders. Now, we get punished for taking the initiative.”
He said although the state government supports the privatisation exercise and would not stand on the way of its success, if the money was not refunded, it would constitute a clog to the successful execution of the exercise.