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FAAC meeting deadlocked, as Nigerian govt faces revenue crunch

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After more than three and a half hours of intense deliberations Wednesday, the monthly Federal Account Allocation Committee (FAAC) meeting came to a halt without resolution of some of the major agenda presented.

The meeting, presided over by the Finance Minister, Zainab Ahmed with the commissioners for finance from across the 36 states in attendance, failed to reach a decision on the modalities of making statutory allocation of funds to the three tiers of government.

Africa’s largest economy has been striving hard in recent times to come to terms with dwindling income, posed by acute downturn in the global oil market from where the bulk of its fortune comes.

While addressing journalists, Hassan Dodo, Director of Press Federal Ministry of Finance said the conference had ended in a stalemate even though he never gave details of the development.

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However, a finance ministry official disclosed that the meeting fell through over dissatisfaction with the sum presented by revenue generating agencies for distribution among across government levels.

It is anticipated that the challenge will be reconsidered at the National Economic Council meeting today, which Vice President Yemi Osinbajo will anchor.

In barely eight weeks, the country external reserves shed well over $2.254 billion dollars (N827.218 billion) leaving a balance of around $36.019 billion at the moment.

As of Wednesday, Brent, the international benchmark for Nigeria’s crude, plunged further, this time to $24 per barrel, marking its lowest level in 16 years.

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