Business

FAAC to share N1.959trn to FG, states, LGs for June

The Federation Account Allocation Committee (FAAC) is set to share an all-time high of N1.959 trillion to the three tiers of government as federation allocation for the month of June 2023.

A total of N3.62 trillion was shared among the Federal Government, the State Governments, and the Local Government Councils from January to May 2023.

N750.174 billion was shared with the three tiers of government in January. In February, N722.677 billion was disbursed.

A total sum of N714.629 billion was disbursed in March, N655.932 billion was shared in April, while N786.161 billion was shared in May.

It was gathered that a substantial part of the N1.959 trillion will come from the contributions made by the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS), and foreign exchange gains as the receipts from the sale of crude oil.

READ ALSO: FAAC: FG, states, LGCs share N786.1bn May revenue

N1.959 trillion was said to have been generated in June after President Bola Tinubu stopped the payment of subsidy on May 29.

Speaking on the development, an official in the Presidency said: “That FAAC will share almost N2 trillion for June, the first time in history, as revenue for the three tiers of government, is an immediate and major benefit of fuel subsidy removal.

“This money that would have been frittered 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.

“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.”

It was further gathered that the technical and plenary meetings of the FAAC will be held today (Thursday) to formally approve the amount that will go to the Federal Government, state, and local governments.

The Star

Segun Ojo

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