FAAC TO SHARE ALMOST N2tr TO THE THREE TIERS OF GOVERNMENT IN JULY — PROBABLY HIGHEST EVER
That FAAC will share almost N2trillion in July, the first time in history, as revenue for the three tiers of government, is an immediate and major benefit of fuel subsidy removal.
This is nearly triple the *N786.161 billion shared in June and more than triple the N655.93 billion* in May.
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.
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.*
Allocations are usually shared from the preceding month’s revenue — meaning June will be shared in July.
*The Federation Account Allocation Committee (FAAC)* will meet in Abuja on Wednesday to allocate the revenue to the tiers of government — federal, state and local — based on the sharing metrics.
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.
