FAAC meeting ends in deadlock over revenue remittances

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The Federation Account Allocation Committee meeting which was convened to consider statutory revenue for the month of February ended in a stalemate on Wednesday

The meeting which would have enabled the committee to allocate revenue to the three tiers of government came to an abrupt end after about three hours of deliberations.

The meeting, held at the headquarters of the ministry of finance started at 5pm and ended around 8.37pm.

It was presided over by the Minister of Finance, Budget and National Planning, Zainab Ahmed, and attended by commissioners of finance from the 36 states of the federation.

It also had in attendance the Accountant General of the Federation, Ahmed Idris, representatives of the Revenue Mobilisation Allocation and Fiscal Commission, the Federal Inland Revenue Services, and the Nigeria Customs Service.

The Director of Press at the Federal Ministry of Finance, Mr Hassan Dodo, told journalists that the meeting was inconclusive, without giving details.

An official in the ministry told our correspondent that members of the committee could not agree on the amount presented for sharing by the revenue generating agencies.

It was learnt that the amount presented for sharing was far below what the members of the committee were expecting to be shared by the three tiers of government.

Another official told our correspondent that since the committee could not agree on the amount to be shared, the issue would have to be taken to the National Economic Council meeting scheduled to hold on Thursday.

The council is chaired by the Vice President, Prof. Yemi Osinbajo, and has the mandate to advise the President on the economic affairs of the federation.

Membership of NEC comprises the 36 state governors, the governor of the Central Bank of Nigeria and other co-opted government officials.

The bulk of the revenue that comes into the federation account for sharing by the three tiers of government is from crude oil sale.

The price of Brent crude tumbled to $24 on Wednesday, the lowest level in 16 years, as global markets continued to respond to the price war between Saudi Arabia and Russia amid the spread of the coronavirus pandemic.

With the oil price now more than 50 per cent lower than Nigeria’s budget benchmark, the country’s oil-dependent economy has come under more pressure.


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