The Federation Account Allocation Committee (FAAC) is set to convene today to distribute a historic amount of over N2 trillion in revenue for the three levels of government in July.
This allocation marks a significant increase compared to the N786.161 billion shared in June and more than triple the N655.93 billion shared in May.The substantial revenue is primarily composed of N1.7 trillion from statutory collections, N293 billion from Value Added Tax (VAT), and N12 billion from electronic money transfer charges.
The fuel subsidy removal has been cited as a contributing factor to this unprecedented revenue distribution.
Tope Ajayi, a media aide to President Bola Tinubu, highlighted the immediate and major benefits resulting from fuel subsidy removal.
Ajayi stated, “This money that would have been frittered away, in a month, via fuel subsidy will now go into the coffers of the government to improve the living conditions of the people. What this means is that there will now be more money available for real development.
“The increased revenue will enable states and local governments to meet their financial obligations, including payment of salaries and pensions.
Moreover, it positions the government at all levels to be more solvent and better equipped to implement initiatives such as the new minimum wage and fund critical sectors such as education, healthcare, and public transportation.
As the revenue distribution reaches unprecedented levels, there is a growing call for accountability and transparency in the utilization of public funds.
Citizens are urged to focus their attention on states and local governments to demand greater transparency, ensuring that the impact of governance is felt at the grassroots level.”
