Lagos, July 23, 2023: A Professor of Finance and Capital Market, Uche Uwaleke, has identified ways that the Federal Government can utilise the over N1.9 trillion revenue increase in Federation Account Allocation Committee (FAAC) for June.
Uwaleke, also the Head of Department, Securities and Investment Management Department, Nasarawa State University, Keffi, who described the revenue rise as remarkable, said that proper accountability and transparency of funds utilisation was essential.
FAAC generated N1.9 trillion in June, from N701 billion in May, probably the highest in the nation’s history.
The rise was majorly occasioned by fuel subsidy removal and Naira depreciation.
FAAC will out of the over 100 per cent revenue distribute only N907 billion among the three tiers of government, while 790 billion will be saved, and the rest will be used for statutory deductions.
These savings will complement the efforts of the Infrastructure Support Fund (ISF) and other existing and planned fiscal measures, all aimed at ensuring that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.
Uwaleke said, ‘”regarding the remarkable increase in FAAC Allocation for June of over N1.9 trillion, the following steps are necessary for proper accountability and transparency of funds utilisation:
“Ascertain from the FAAC Allocation the proportion of the increase in funds resulting from the Naira devaluation.
“Ring fence the funds by creating a special accounts for them.
“Obtain approval from the National/State Assemblies as the case may be to apply them to special projects in education, health and infrastructure provision.
“Such funds should not be used to implement increase in minimum wage or applied to recurrent expenditure.
“All tiers of government should endeavour to increase workers’ salaries through reducing wastes and cost of governance as well as plugging loopholes in revenue collection leveraging technology.”
