Friday, February 23, 2024

FAAC meeting holds today, record breaking N2trn revenue to be shared

The Federation Account Allocation Committee will meet today to share almost N2trillion in July, the first time in history, as revenue for the three tiers of government.

This is nearly triple the N786, 161billion shared in June and more than triple the N655. 93billion shared in May.

Allocations are usually shared from the preceding month’s revenue, which means June revenue will be shared in July.

Statutory collections make up N1.7 trillion of the federally collected revenues, followed by N293 billion from VAT and N12 billion from electronic money transfer charges.

FAAC is made up of the Minister of Finance as chairman, all state Commissioners of Finance, state Accountants-General, the Accountant-General of the Federation and the Permanent Secretary of the Federal Ministry of Finance.

This “is an immediate and major benefit of fuel subsidy removal, Tope Ajayi, a media aide to President Bola Tinubu said.

“This money that would have been frettered away, in a month, via fuel subsidy will now go into the coffers of government to improve living conditions of the people. What this means is that there will now be more money available for real development.

“States and Local Governments will have enough money to pay salaries of workers and pensioners. Government at all levels will become more solvent, be in a stronger financial position to easily pay new minimum wage and fund development in critical sectors especially in education, healthcare and public transportation.

“Going forward, we should begin to focus attention on our states and local governments to demand more accountability and transparency in the use of public fund. The real governance impact should be at the State and local levels,”Ajayi said.

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