The Socio-Economic Rights and Accountability Project (SERAP) has given the Minister of the Federal Capital Territory (FCT), Mr. Nyesom Wike, and Nigeria’s 36 state governors seven days ultimatum to provide the organisation with documents on the spending of trillions of FAAC allocations received by the FCT and the states since 1999, and to widely publish any such documents.
SERAP also called on Wike and the governors to invite Independent Corrupt Practices and Other Related Offences Commission (ICPC) and Economic and Financial Crimes Commission (EFCC) to jointly track and monitor the spending of FAAC allocations by the states and the FCT and to probe any allegations of corruption linked to the allocations.
SERAP’s requests followed reports that the Federation Account Allocation Committee (FAAC) disbursed N1.123 trillion to the federal, state, and local governments for March 2024 alone. Out of the total sum, the states collected N398.689 billion.
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In a Freedom of Information (FoI) request dated April 20, 2024 and signed by SERAP Deputy Director, Kolawole Oluwadare, the organisation said that it is within the rights of Nigerians to know how public funds including FAAC allocations, are spent.
According to SERAP, “trillions of FAAC allocations received by Nigeria’s 36 states and the FCT have allegedly gone down the drain,” adding that this has resulted in human costs directly impacting on the social and economic rights of vulnerable Nigerians.
The FoI requests, read in part: “Despite the increased FAAC allocations to states and FCT, millions of residents in your state and the FCT continue to face extreme poverty and lack access to basic public goods and services.”
“The reported removal of petrol subsidy and the floating of the exchange rate by the Federal Government has translated into increased FAAC allocations to states and the FCT. However, there is no corresponding improvement in the security and welfare of millions of Nigerians.”
“FAAC allocations received by your state and the FCT are reportedly characterised by mismanagement, diversion of funds, and abandoned projects. FAAC allocations have also been allegedly spent for other purposes such as election campaigns and political patronage.”
“Publishing the documents on the spending of FAAC allocations by your state and the FCT would promote transparency, accountability, and reduce the risks of corruption in the spending of the funds.”
“Publishing the documents would enable Nigerians to meaningfully engage in the implementation of projects executed with the FAAC allocations collected.”
“The report that some 140 million Nigerians are poor suggests corruption and mismanagement in the spending of trillions of naira in FAAC allocations collected by your state and the FCT.”
“According to our information, the Federation Account Allocation Committee (FAAC) last week disbursed N1.123 trillion to the federal, state and local governments for March 2024.”
“State governments got N398.689 billion while local government councils got N288.688 billion. The mineral-producing states received an additional N90.124 billion (13% of mineral revenue). In February, states collected N336 billion.”
“According to the Nigeria Extractive Industries Transparency Initiative (NEITI), the federal, states and local governments shared N10.143 trillion from the Federation Account as statutory revenue allocations in 2023, with states collecting N3.585 trillion.”
“SERAP also urges you to provide details of the transparency and accountability mechanisms that have been put in place to ensure that the trillions of naira of FAAC allocations that have been received by your state and the FCT are not embezzled, misappropriated or diverted into private pockets.”
“SERAP is concerned about the persistent lack of transparency and accountability in the spending of FAAC allocations by your state and the FCT.”
“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel you and your state and the FCT to comply with our requests in the public interest.”