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FAAC remits N120bn to Excess Revenue Account
The Federation Account Allocation Committee (FAAC) has remitted the sum N119.55 billion to the Excess Revenue Account, a statement from the Office of the Accountant General of the Federation revealed Thursday.
The remittance came from the N780.926 billion, endorsed for distribution to the federal, state and local governments.
According to the document signed by Henshaw Ogubike, Director Information, Press and Public Relations, the transfer was occasioned by the current crisis confronting the country and the highly volatile revenue profile in the immediate future.
The three government tiers would share N661.42 billion for the month of March with the latest transfer of N119.55 billion, the statement said.
The Excess Revenue Account is different from the Excess Crude Account (ECA), which was set up in 2004 to house revenues in excess of the budgetary benchmark price, earned from crude oil sales.
Read also: Nigeria may stop oil production if price crash persists –NNPC
According to the framework provided by an ad-hoc committee formed in July 2018, the minimum monthly statutory revenue to be distributed among the three tiers of government from the Federation Account should be N680 billion.
The committee in the report prescribed that any month in which the net distributable revenue available for allocation by the three tiers of government from the federation account fell below the threshold of N680 billion, funds should be drawn from the ECA to augment it.
It similarly recommended that where the net distributable revenue fell between N680 billion and N730 billion, about N50 billion should be transferred as savings.
It went further to say that where the net distributable revenue for the month was between N730 billion and N830 billion, N100 billion should be remitted as savings.
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