The Federal Government may deduct at least ₦2.4 trillion from the Federation Account to fund the ₦5, 000 cash palliative that will be handed over to 40 million poor Nigerians after the fuel subsidy has been removed next year.
On Thursday that the list of poor Nigerians on the Federal Government’s National Social Register had surpassed 42 million and may hit 43 million by December. This implies that the figure to be spent on the subsidy palliative may hit ₦2.58 trillion in one year.
Zainab Ahmed, the Minister of Finance, Budget and Planning noted that the funding would come from FAAC allocations. FAAC which is headed by the Minister of Finance, comprises Commissioners of Finance from the 36 states, representatives of revenue-generating agencies such as the Nigerian National Petroleum Company Limited, Federal Inland Revenue Service, Department of Petroleum Resources, Central Bank of Nigeria, Nigeria Customs Service among others.
These revenue-generating agencies are expected to remit a specified amount of their revenue to the Federation Account which will be distributed among the three tiers of government.
Negotiation
FG to negotiate with FAAC members before deduction Ahmed, however, noted that negotiation was still ongoing.
“So these are things that we are still in negotiation because it’s still money that would have to come from the Federation Account. So everybody that is a member of FAAC will have to agree on the numbers.”
Ahmed, however, noted that negotiation was still ongoing.
“So these are things that we are still in negotiation because it’s still money that would have to come from the Federation Account. So everybody that is a member of FAAC will have to agree on the numbers.”
