State governors under the Nigerian Governors’ Forum (NGF) are preparing for a confrontation with President Bola Tinubu due to the Federal Government’s refusal to distribute the N3.8 trillion Stamp Duty Fund. The governors claim this decision is causing financial strain on their states.
According to NGF insiders, the governors believe the Presidency is deliberately withholding the funds, which are crucial for implementing state programs to alleviate economic hardships. The fund, collected from stamp duties, is meant to be shared between the federal government, state governments, and various consultants.
A Northern governor has been particularly vocal, accusing some presidential aides of blocking the fund’s release despite the President’s willingness to distribute it. The governor alleges these aides are using the situation to exert pressure on the governors for a share of the funds.
The withheld funds are significant, with states entitled to 73%, the federal government 14%, the Federal Inland Revenue Service (FIRS) 4%, coordinating consultants 5%, a legal team 2%, and others 2%.
The issue had previously led to legal action, with state Attorney-Generals and Civil Society Organisations suing the Federal Government to remit the funds to state accounts. The case was resolved out of court when former President Muhammadu Buhari promised to pay the governors, but the funds were not released before he left office.
The economic challenges following the removal of oil subsidies and other federal policies have intensified the governors’ need for these funds. A South-West governor has assured his colleagues that President Tinubu will release the funds by the end of next month, urging patience.
