The National Economic Council (NEC) says the federal and state governments have reached an out-of-court settlement of the issue of the legality of the Excess Crude Account.
The News Agency of Nigeria (NAN) recalls that the 36 state governments last year instituted a case against the Federal Government, over the legality of the Excess Crude Account and the decision to transfer $1 billion from the account to the Sovereign Wealth Funds (SWF).
Gov. Godswill Akpabio of Akwa Ibom, who briefed State House correspondents on the outcome of the monthly NEC meeting on Thursday, said the matter had been resolved amicably.
The NEC meeting was presided over by Vice President Namadi Sambo at the Presidential Villa, Abuja.
Akpabio said the Council had mandated the Coordinating Minister of the Economy/Minister of Finance to meet with the representatives of the state governors to identify the procedures for the out-of-court settlement.
The Minister of National Planning, the Attorney-General of the Federation, and the Governor of the Central Bank are also to join the Minister of Finance to negotiate with the representatives of the governors.
Akpabio also said that after a presentation on the local and international economic fundamentals that informed the determination of the oil benchmark price by the Coordinating Minister of the Economy, the Council accepted the $72 price used in the 2012 budget.
He said the Council also deliberated on the new Personal Income Tax regime and its effect on the revenues accruable to state governments.
The governor said the Council agreed that the FIRS should work with the state governments to come up with reliable structures to drive taxation.
He said that with the new tax regime the president, governors, deputy governors and National Assembly members would now pay tax on their official emolument.
“The new Personal Income Tax regime will improve revenue generation, and holds significant potential for growing state revenue above what is obtainable now,” he added.
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