House to Probe States’ Spending of N6.57bn Allocation from FAAC

Juliet Akoje in Abuja

The House of Representatives has mandated its Committees on Special Duties, National Planning and Economic Development and Inter-Governmental Affairs to look into state spending and utilisation of the increased allocation from the Federal Account Allocation Committee (FAAC) and report back within four weeks for further legislative action.

The resolution followed the adoption of a motion under matters of urgent national importance on: ‘The need to monitor increased FAAC allocations and usage in accordance with enabling laws in the country in order to reduce poverty in Nigeria’ moved by Hon. Ademorin Kuye at plenary.

Kuye recalled that amount shared by the federal, states and local governments from FAAC had increased significantly, due to the withdrawal of fuel subsidy, floating of the naira and other economic policies unanimously introduced by the government.

“States and local governments got the most cash from FAAC in at least seven years after the subsidy removal took away its burden on public coffers and a currency reform delivered a 40 per cent boost on naira income,” he said.

He informed the House that States and local governments received a total of N6.57 trillion in 2023, double the N3.16 trillion they received in 2022.

Raising the concern, Kuye stated that despite the availability of more cash to the states, 14.2 million more citizens continue to grapple with poverty.

He said even Delta that received N217.74 billion; Rivers N179.81 billion; Akwa Ibom – N145.57 billion, Bayelsa N128 billion, have poverty rate of 13.1 per cent, 7. 3 per cent, 22.9 per cent and 24.3 per cent respectively, according to a World report.

“We are more concerned that most of these states with increased allocation face significant challenge in payment of salaries, effective management of public institution, provision of public transportation and access to potable water as unemployment rate has increased to over 51 per cent in some of them.

“Also worried that state governors have brazenly refused to complement the federal government poverty amelioration efforts and are not driving the necessary economic transformation that will reduce citizen suffering in their respective states with the increased allocation at their disposal,” the House said.