Revenue-generating Agencies Owe FG N2.9trn-FAAC

The federal account allocation committee (FAAC) has disclosed that some revenue-generating agencies (RGAs) owe the federal government over N2.9 trillion. According to FAAC, the total unresolved amount due to the federation account was N2,977,561,881,021.29 and $36,329,376.24. This information was revealed in the minutes of the FAAC reconciliation meeting with the revenue-generating agencies on April 19.

FAAC disburses allocations from the revenues generated into the federation accounts every month, which comprise multiple accounts specific to the revenue-generating agency. The bulk of the revenue shared at FAAC meetings by the federal, state, and local governments comes from oil exports, taxes, and other statutory allocations. Under the current revenue-sharing formula, the federal government receives 52.68 per cent, states receive 26.72 per cent, and local governments get 20.60 per cent from the revenue.

Speaking at the meeting, Kabir Mashi, vice-president of the post-mortem sub-committee (PMSC), who represented the committee chairman, said the outstanding amounts were still being reconciled with the relevant agencies at the monthly reconciliation meeting. “Outstanding federation account revenue arising from inter-agencies reconciliation meeting held in April 2024: The Vice Chairman, PMSC reported that the total unresolved amount due to the Federation Account from the reconciliation meeting held with the revenue generating agencies in April 2024 was $36,329,376.24 and N2,977,561,881,021.29,” the minutes read in part.

Mashi mentioned that all other outstanding amounts from the RGAs before June 2023 were referred to the stakeholders alignment committee and that PMSC was awaiting the outcome of the reconciliation. Akintunde Oyebode, chairman of the commissioners’ forum and finance commissioner for Ekiti state, commended the PMSC for their efforts in recovering outstanding funds belonging to the federation account, noting that the sub-nationals were feeling the impacts of the recovery.