Revenue-generating agencies owe FG over N3tn – FAAC

The Federal Government could face a potential loss of N2.97tn and $36.33m if revenue-generating agencies in the country do not reconcile unremitted earnings collected, The According has learnt.

The figure owed by an unnamed number of agencies as of April 2024 was revealed during the Federal Account Allocation Committee. Our correspondent obtained the minutes of the meeting on Monday.

The Vice President of the Post-Mortem Sub-committee representing the committee Chairman, Kabir Mashi, at the meeting, said the outstanding amounts were still being reconciled with the relevant agencies at the monthly reconciliation meeting

The minute read in part, “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.”

He disclosed that all other outstanding amounts from the RGAs before June 2023 were referred to the Stakeholders Alignment Committee and PMSC was awaiting the outcome of the reconciliation.

Commenting, the Chairman of the Commissioners’ Forum and Finance Commissioner, Ekiti State,  Akintunde Oyebode, commended the PMSC for the effort in the recovery of outstanding funds belonging to the Federation Account and informed that the sub-nationals were feeling the impacts of the recovery.

The Federation Account Allocation Committee disburses allocations from the revenues generated into the Federations Accounts, which comprise multiple accounts specific to a sector/ business type.

The bulk of the revenue shared at FAAC meetings by the federal, state, and local governments are earnings from oil exports, taxes, and other statutory allocations.

Under the current revenue-sharing formula, the Federal Government gets 52.68 per cent of the revenue, states 26.72 per cent, and local governments 20.60 per cent.

The fund which is arguably the major source of revenue for most states is to ensure development at different levels of government and also to enable the states and LGs to meet their obligations.