FAAC to share N1.959 trillion revenue July among federal, state & local government.

That FAAC will share almost N2 trillion in July, the first time in history, as revenue for the three tiers of government and it’s been described as the ‘highest ever’.
This is also said to be an immediate and major benefit of fuel subsidy removal.

This revelation was made by Temtope Ajayi, Senior Special Assistant to the president on Media and publicity in a public statement pushed out.

Further details of the jumbo allocation shows that it nearly triple the N786.161 billion shared in June and more than triple the N655.93 billion in May.

According to him the money that would have been frettered away, in a month, via fuel subsidy will now go into the coffers of government to improve living conditions of the people. What this means is that there will now be more money available for real development.

The sharing formula indicates that States and Local Governments will have enough money to pay salaries of workers and pensioners. Government at all levels will become more solvent, be in a stronger financial position to easily pay new minimum wage and fund development in critical sectors especially in education, healthcare and public transportation.

Details show that statutory collections make up *N1.7 trillion of the federally collected revenues, followed by N293 billion from VAT and N12 billion from electronic money transfer charges.

FAAC is made up of the minister of finance as chairman, all state commissioners of finance, state accountants-general, the accountant-general of the federation and the permanent secretary of the federal ministry of finance. Although there is no substantive mini’s of finance as Tinubu is yet to constitute a cabinet.

Allocations are usually shared from the preceding month’s revenue — meaning June will be shared in July.

The Federation Account Allocation Committee (FAAC) will meet in Abuja on Wednesday to allocate the revenue to the tiers of government — federal, state and local — based on the sharing metrics.

Mr Ajayi concluded by saying going forward that the country should begin to focus attention on our states and local governments to demand more accountability and transparency in the use of public fund stressing that the real governance impact should be at the State and local government levels.