FAAC Reveals: Revenue-Generating Agencies Owe FG Over ₦3 trillion

The Federal Government risks losing N2.97tn and $36.33m if revenue-generating agencies do not reconcile unremitted earnings.

This figure, owed by several unnamed agencies as of April 2024, was disclosed during a Federal Account Allocation Committee (FAAC) meeting. The minutes of this meeting were obtained by our correspondent on Monday.

Kabir Mashi, Vice President of the Post-Mortem Sub-committee and representing the committee Chairman, stated that the outstanding amounts are still being reconciled with the relevant agencies.

The minutes stated, “Outstanding Federation Account Revenue Arising from Inter-Agencies Reconciliation Meeting Held in April 2024: The Vice Chairman, PMSC, reported that the total unresolved amount due to the Federation Account from the reconciliation meeting held with the Revenue Generating Agencies in April 2024 was $36,329,376.24 and N2,977,561,881,021.29.”

Mashi disclosed that all other outstanding amounts from the revenue-generating agencies before June 2023 were referred to the Stakeholders Alignment Committee, and the PMSC is awaiting the outcome of this reconciliation.

Akintunde Oyebode, Chairman of the Commissioners’ Forum and Finance Commissioner of Ekiti State, commended the PMSC for their efforts in recovering outstanding funds for the Federation Account, noting that the sub-nationals are feeling the impact of these recoveries.

The FAAC disburses allocations from revenues generated into the Federation Accounts, which include multiple accounts specific to different sectors.

Most of the revenue shared at FAAC meetings by the federal, state, and local governments comes from oil exports, taxes, and other statutory allocations. Under the current revenue-sharing formula, the Federal Government receives 52.68% of the revenue, states receive 26.72%, and local governments receive 20.60%.

This fund is a major source of revenue for most states, ensuring development at various government levels and enabling states and local governments to meet their obligations.

This article is sourced from The Punch newspaper, with minor edits and adaptations by The Spectacles for clarity and readability.