Fiscal crisis looms in, as FAAC’s allocation falls by 10% to N582bn

The Federation Account Allocation Committee (FAAC) Monday distributed funds worth N581.56 among the three tiers of government, triggering a 10% decline month on month, and raising fears of economic contraction across governmental levels should the phenomenon develop as the months pass by.

Discussions at the three-and-a-half hour FAAC meeting for February had stalled abruptly five days back following differences among states and other stakeholders regarding the modality for apportioning the fund.

The allocation for February plummeted by N65.79 billion relative to the N647.35 billion reported in January.

It was effected after a rescheduled meeting that took place at the Ministry of Finance complex in Abuja yesterday.

Of the N581.56 billion, statutory revenue accounted for N466.05 billion, Value Added Tax N99.55 billion, exchange gain N757 million and income from forex equalisation account N15.19bn.

On the allocation side, the Federal Government received N236.11 billion, state governments N159.01 billion and the Local Government councils N119.3 billion.

Oil producing states got N45.31 billion on the basis of the 13% derivation formula just as revenue generating agencies received N21.82 billion in cost of revenue collection.

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