The Federal Account Allocation Committee’s Postmortem Subcommittee has recommended that the Federal Government repay the N228 billion loan it obtained from the non-oil surplus income account to finance the 2023 general elections.
On December 14, 2023, the subcommittee Chairman, Kabir Mashi, signed a detailed report containing this material. The paper examined the inflows and outflows from the non-oil surplus revenue account from January 2020 to October 2023.
During this time, N1 trillion was distributed to the three levels of government. The report disclosed that the total inflow into the Non-oil Excess Account for the period was N2.6tn
During a FAAC Plenary meeting in September 2023, concerns were raised over significant deductions from the Non-Oil Excess Revenue Account, prompting an in-depth investigation.
The sub-committee found that the loan for the 2023 general elections constituted about 26 per cent of the total deductions made between January 2020 and October 2023.
Additional deductions were noted, including a refund of gas flared penalty to the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The sub-committee recommended refunding the total deductions of N864.16bn for other purposes back to the account.
The Independent National Electoral Commission had proposed a budget of N305bn for the conduct of the 2023 general election. It also budgeted an additional N50bn for its annual budget, which is an increment of N10bn compared to the 2022 budget.
Nigeria’s debt profile has been a cause for concern in recent years. Data from the Debt Management Office indicate that the Federal Government borrowed N7.04tn locally in 2023.
The debt-GDP ratio is currently at 23.27 per cent, which is still below the threshold of 77 per cent which could hurt economic growth.
