The Kwara State Commissioner for Finance, Mr. Demola Banu, has said that the fall in the value of the naira against major international currencies and the crash of oil prices have been affecting financial transactions, both in the private and public sectors of the Nigerian economy, adversely.

He said it had also inhibited governance and government’s discharge of its financial responsibilities in many states and the local government councils of the federation.

In a session with journalists in Ilorin on Thursday, he said there was the need to increase national productivity and exports to shore up the value of the naira.

Banu said the delay in the receipt of Kwara State’s allocation from the Federation Account was responsible for the delay in the payment of the June salaries of the civil servants.

He, however, said the governments would continue to do everything possible to ensure improvement in the welfare of the residents and prompt payment of government employees.

He urged state governments to improve on their internally generated revenue and other sources of income to reduce their dependence on the federal allocation for the discharge of their financial obligations.

Banu said the state had improved its IGR from its previous N450m monthly to N750m, adding that the state hoped to achieve N1bn as its monthly IGR before the end of the year.

To meet the target, he said the state government had initiated more strategies to improve on its revenue generation. According to him, the state’s monthly wage bill is about N2.2bn, while its allocation is in the average of N2.5bn per month.

Banu said with this heavy bill, little is left for capital projects, making the diversification of the revenue base of the state imperative.

He added that the state was partnering the private sector to stimulate economic transformation in the state.

Banu said, "Most states depend largely on federation allocation. Crude oil accounts for about 90 per cent of export. As a result of vandalism, the quantity of oil exports has really dropped and the price has gone down drastically.

"As of a month ago, it was about $100 per barrel but today it is about $90 per barrel.

"Definitely, this will affect the amount the states get. This is because international demand has gone down. If the demand crashes, it will affect the price."