Accountant General’s N80bn Fraud Probe Forces FG To Postpone Revenue Allocation Meeting

The probe of the Accountant General of the Federation, Mr Ahmed Idris over alleged N80bn scam has forced the federal government to postpone the May 2022 Federation Account Allocation Committee meeting.

The ministry of finance, budget and national planning said this on Wednesday in a circular signed by the Director, Home Finance, Stephen Okon.

The committee, headed by the Minister of Finance, Mrs. Zainab Ahmed is made up of commissioners of finance from the 36 states of the federation; the Accountant General of the Federation, Mr. Ahmed Idris; and representatives of the Nigerian National Petroleum Corporation.

Others are representatives of the Federal Inland Revenue Service; Nigeria Custom Service; Revenue Mobilisation, Allocation and Fiscal Commission; as well as the Central Bank of Nigeria.

The Federation Account is currently being managed on a legal framework that allows funds to be shared under three major components of statutory allocation, Value Added Tax distribution and allocation made under the derivation principle.

Under statutory allocation, the Federal Government gets 52.68 per cent of the revenue shared; states, 26.72 per cent; and local governments, 20.60 per cent.

The framework also provides that VAT revenue be shared thus: Federal Government, 15 per cent; states, 50 per cent; and local governments, 35 per cent.

Similarly, extra allocation is given to the nine oil producing states based on the 13 per cent derivation formula.

The ministry said the meeting was postponed due to “certain circumstances”.

The circular reads, “I am directed to inform you that the Federation Account/Allocation Committee (FAAC) meetings earlier scheduled to hold/virtually on the 18th and 19th May 2022 have been postponed due to/certain circumstances,” the circular reads.

“In view of the foregoing, I am to further inform you that the new date for the meetings will be forwarded to you in due course.

“While we regret the inconveniences this change might cause you, please accept the assurances of the Honorable Minister’s warm regards.”

The FAAC meeting is a monthly meeting where the federation allocates monthly revenue among the three tiers of government.

The meeting was initially scheduled to hold on May 18 and 19, 2022.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, had suspended the Accountant General of the Federation, Ahmed Idris over allegation of N80bn fraud.

The Minister’s Special Adviser on Communications, Mr Tanko Abdulahi confirmed the suspension in a telephone interview with THE WHISTLER.

Tanko told this website that the AGF has been asked to proceed on indefinite suspension pending the outcome of the investigation.

He said, “The AGF has been suspended by the Finance Minister. His suspension will be indefinite until the investigations by the Economic and Financial Crimes Commission has been concluded.”

Operatives of the Economic and Financial Crimes Commission, had on Monday, arrested Idris over allegations bothering on money laundering to the tune of N80bn.

The EFCC noted that the AGF’s arrest followed verified intelligence that he allegedly “raked off the funds through bogus consultancies and other illegal activities using proxies, family members and close associates.”

The Commission’s Spokesperson, Wilson Uwujaren in a statement said the funds were laundered through real estate investments in Kano and Abuja.

“Mr Idris was arrested after failing to honour invitations by the EFCC to respond to issues connected to the fraudulent acts,” the EFCC said

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