EXCLUSIVE: All Governors Endorse FG’s Proposal To Share Only N900bn From N1.9trn FAAC Revenue

The 36 State Governors all through the federation have endorsed the proposal of the Federal Government not to share the entire revenue of N1.9trn which may have accrued to the federation by Federation Accounts Allocation Committee, FAAC.

Freshreporters had noted that endorsement of the Federal Government’s proposal was made at a meeting held by the Governors on Wednesday night in Abuja, Federal Capital Territory, freshreporters media gathered.

It was noted that during the meeting, the issue of the revenue accruals into the federation account was raised ahead of the FAAC meeting. [CONTINUE READING]

it was understood that the Nigeria Federal Government had sometimes proposed that the sharing of the entire N1.9trn was not a good idea because it would increase the amount of money in circulation and cause further inflationary pressures in the economy.

Freshreporters media had also noted that Nigeria’s inflation stands at about 22.7 per cent based on figures released by the National Bureau of Statistics in the recent days. [CONTINUE READING]>>>

One of the governors who attended the meeting told the newsmen that in view of the removal of fuel subsidy, the Federal Government raised concerns that if the entire N1.9trn is to be shared, it may put pressure on the naira and also affect the price of fuel which is being sold currently.

The governor noted that, rather than sharing the entire N1. 9trn, the governors agreed that N900bn should be shared while the balance of N1trn should be transferred to the Central Bank of Nigeria to shore up the nation’s external reserves.

Figures obtained from the Central Bank of Nigeria, CBN showed that as of 18th of July, 2023, Nigeria’s external reserves stood at $33.99bn

The governor said,

“The N1.9trn revenue is true. But we won’t be sharing all. FAAC will only be sharing N900bn and keep the rest with CBN. The fear is that sharing all will further push inflation and put pressure on the dollar, which will in turn push further the fuel price.

“The governors have agreed with the proposal made by the Presidency not to share all the money. The idea is to help the CBN raise the foreign reserve up to $40bn from the current $33bn.”…[CONTINUE READING]>>