April FAAC: FG Forces States To Accept N680b

After hours of resistance, the Federal Government on Thursday
forced states and local governments to share N680.687 billion as
allocation for this month.

The much-awaited April 2020 Federation Account Allocation
Committee (FAAC) meeting which kicked off before noon with the
technical session, was still ongoing as of press time last
night.

A source told newsmen that at 5 pm that the plenary session
collapsed when the state governments demanded to share the entire
revenue generated for the month.

But the Federal Government rejected the request and insisted
that it must save some money.

There exists a gentleman’s agreement between the three tiers of
government that not less than N650 billion should be shared every
month after the FAAC meeting.

Where there is a shortfall in revenue, the Federal Government is
obligated to withdraw from strategy accounts to augment what is to
be shared for the month.

The shortfall in March threw up controversy following Edo
Governor Godwin Obaseki’s claim that N60 billion was printed by the
Central Bank of Nigeria (CBN) to augment allocations.

Thursday, a drama ensued when the federation account recorded
revenue of over N800 billion.

The state governments went up in arms when the Federal
Government team announced that a portion of the money would be
saved.

The source: “The Federal Government was obliged to honour the
gentleman’s agreement of sharing N650 billion for the month. But
the economic realities of today have forced it to save whatever it
can to mitigate economic volatilities.

“The Federal Government, the source said, “stood its ground and
after several hours of consultations between governors and their
commissioners of finance on the one hand and a resolute Federal
Government on the other.

“A compromise was reached and the Federal Government released an
additional N30 billion to the already agreed N650 billion.”

After hours of resistance, the Federal Government on Thursday
forced states and local governments to share N680.687 billion as
allocation for this month.

The much-awaited April 2020 Federation Account Allocation
Committee (FAAC) meeting which kicked off before noon with the
technical session, was still ongoing as of press time last
night.

A source told newsmen that at 5 pm that the plenary session
collapsed when the state governments demanded to share the entire
revenue generated for the month.

But the Federal Government rejected the request and insisted
that it must save some money.

There exists a gentleman’s agreement between the three tiers of
government that not less than N650 billion should be shared every
month after the FAAC meeting.

Where there is a shortfall in revenue, the Federal Government is
obligated to withdraw from strategy accounts to augment what is to
be shared for the month.

The shortfall in March threw up controversy following Edo
Governor Godwin Obaseki’s claim that N60 billion was printed by the
Central Bank of Nigeria (CBN) to augment allocations.

Thursday, a drama ensued when the federation account recorded
revenue of over N800 billion.

The state governments went up in arms when the Federal
Government team announced that a portion of the money would be
saved.

The source: “The Federal Government was obliged to honour the
gentleman’s agreement of sharing N650 billion for the month. But
the economic realities of today have forced it to save whatever it
can to mitigate economic volatilities.

“The Federal Government, the source said, “stood its ground and
after several hours of consultations between governors and their
commissioners of finance on the one hand and a resolute Federal
Government on the other.

“A compromise was reached and the Federal Government released an
additional N30 billion to the already agreed N650 billion.”