Members of the Federation Account Allocation Committee (FAAC) have declined to approve the distribution of revenue that has accrued to the Federation (federal, states, and local governments) in October 2021.
They refused to adopt the reports by the revenue-generating agencies and the revenue inflow analysis by the office of the accountant general of the federation for October 2021, which revealed that $418 million judgment debt for consultancy services with respect to Paris Club loans refund was deduction from funds belonging to the councils and paid to consultants.
According to a statement by the Chairman of FAAC, David Olofu, who said Friday’s meeting was inconclusive, information available revealed that the deduction will continue for 10 years (120 months), contrary to the provisions of section 162 of the 1999 Constitution, as amended.
The Nigeria Governors’ Forum (NGF) had objected to the execution of the judgment until the full determination of ongoing litigation on the subject matter.
Commissioners for Finance representing states and local government said they had no prior knowledge of the deductions, saying it will further worsen the fiscal position of the tiers of government.
As a result of this, the meeting was adjourned to allow for further consultations and resolution of all the issues that had been previously raised by the NGF regarding the assignment that gave rise to the claim and the judgment.
The FAAC meeting which is chaired by the Minister of Finance while state commissioners for finance are members representing the 36 states and 774 councils.
Other members are the Federal Capital Territory director, treasury, account general of Federation and Revenue Mobilization, Allocation, and Fiscal Commission.
By Juliana Taiwo-Obalonye,
The Sun