Wike criticizes PIA, says Act will shorten monthly allocation to States
Wike criticizes PIA, says Act will shorten monthly allocation to States
By Eloyi Matthew
Governor Nyesom Wike of Rivers State has criticized the newly signed Petroleum Industry Act (PIA), claiming it will reduce remittances by the Nigerian National Petroleum Corporation (NNPC) to the federation account, thereby slicing the monthly allocation to states.
The Governor stated this while speaking at the Government House, Port Harcourt last week shortly after signing the Valued Added Tax Law No. 4 of 2021, which authorizes the Rivers State Government to henceforth collect Value Added Tax (VAT) in the state.
He explained that the NNPC under the new Act, will be unbundled and this will lead to every state having to look inward to survive without waiting for the federal government’s Federation Accounts Allocation Committee (FAAC) allocations.
In his words, “With the Petroleum Industry Act passed and signed into law, there shall be unbundling of NNPC, which means that NNPC remittance to the federation account will be less, requiring every state to look inwards on how to survive.”
He said that over the years, states have become weak that they could barely survive without monthly revenue received from the allocation.
Referring to the recent drama with the Federal Inland Revenue Services (FIRS), he pointed out that when agencies of the central government are allowed to demand and collect taxes meant for states to collect, they have to resort to “begging”.
Speaking further, Governor Wike said there were plans already for FIRS to introduce road tax and this was likely to take away more duties from the states and further emasculate them financially.
