The federal government could face a potential loss of N2.97 trillion and $36.33 million if revenue-generating agencies in the country do not reconcile unremitted revenues received.
The amount owed by an undisclosed number of agencies as of April 2024 was revealed at the Federal Account Allocation Committee on Monday, according to The Punch.
The Vice President of the Post-Mortem Sub-committee, Kabir Mashi, who represented the committee Chairman at the meeting, stated that the overdue funds 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 stated that all other outstanding payments from the RGAs before June 2023 had been sent to the Stakeholders Alignment Committee, and PMSC was awaiting the outcome of the reconciliation.
In his speech, the Chairman of the Commissioners’ Forum and Finance Commissioner, Ekiti State, Akintunde Oyebode applauded the PMSC for its efforts in recovering outstanding funds for the Federation Account and stated that the sub-nationals were feeling the effects of the recovery.
The Federation Account Allocation Committee disburses allocations from revenues generated into Federation Accounts, which are comprised of several accounts specific to a sector/business type.
The majority of the revenue shared at FAAC meetings by federal, state, and municipal governments comes from oil exports, taxes, and other statutory allocations.
According to the present revenue-sharing model, the federal government receives 52.68 per cent of the revenue, states 26.72 per cent, and local governments 20.60 per cent.
The fund, which is undoubtedly the primary source of revenue for most states, is intended to ensure development at all levels of government while also allowing states and LGs to satisfy their obligations.
