FAAC Revenue Allocation Meeting Ends In Rift
Federal Account Allocation Committee (FAAC) members have failed to agree over the sum to be allocated to the federal, State and Local governments by revenue-generating agencies.
The committee had met on Wednesday night over the approval of the amount which would be allocated to the three tiers of government.
The meeting, which lasted about three hours, was reported to have ended in a rift as the allocation set aside for February 2020 was far less than what the committee members had expected.
The meeting presided over by the Minister of Finance, Budget and National Planning, Zainab Ahmed, had in attendance, commissioners of finance from the 36 states.
Also, in attendance were the Accountant General of the Federation, Ahmed Idris, the Federal Inland Revenue Services, representatives of the Revenue Mobilisation Allocation and Fiscal Commission and the Nigeria Customs Service (NCS).
Punch reported that an official disclosed that the matter was transferred to the National Economic Council (NEC), chaired by Vice President, Yemi Osinbajo, for treatment.
The report added that the NEC would meet Thursday, March 19, over the issue.
The cut could be attributed to the fall in the estimated revenue of N8.8 trillion for 2019 after the Federal Inland Revenue Service (FIRS) announced that it realized N5.26 trillion in 2019.
The coronavirus had also dragged Brent oil price to $ 28.49 per barrel, which is below 2020 budget benchmark of $57 per barrel.
The development has forced the Central Bank of Nigeria into committing over N1.2 trillion as intervention fund while also cutting interest rates, among other funding measures to curb the effect of the pandemic.