The Postmortem Sub-Committee of the Federal Account Allocation Committee (FAAC) has advised the Federal Government to reimburse the N228 billion loan it obtained from the non-oil excess revenue account to fund the 2023 general elections.
The comprehensive report, dated December 14, 2023, and signed by Sub-Committee Chairman Kabir Mashi, analyzed the inflow into and payments from the non-oil excess revenue account from January 2020 to October 2023.
The report revealed that a total of N1 trillion was distributed to the three tiers of government during this period, while the total inflow into the Non-oil Excess Account amounted to N2.6 trillion. The investigation was prompted by concerns raised during a FAAC Plenary meeting in September 2023 about significant deductions from the Non-Oil Excess Revenue Account.
The sub-committee discovered that the loan for the 2023 general elections accounted for approximately 26 percent of the total deductions made between January 2020 and October 2023. Additional deductions included a refund of gas flared penalty to the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The sub-committee recommended the repayment of the total deductions of N864.16 billion for other purposes back to the account.
The Independent National Electoral Commission (INEC) had proposed a budget of N305 billion for the conduct of the 2023 general election. Additionally, it budgeted an extra N50 billion for its annual budget, representing a N10 billion increase compared to the 2022 budget.
Nigeria’s debt profile has raised concerns in recent years, with data from the Debt Management Office indicating that the Federal Government borrowed N7.04 trillion locally in 2023. The current debt-to-GDP ratio stands at 23.27 percent, which is still below the threshold of 77 percent that could adversely impact economic growth. The recommendation for the repayment of the election loan reflects the government’s commitment to addressing fiscal challenges and maintaining transparency in financial matters.
