Fuel subsidy: Reps to monitor increased FAAC monthly allocation, utilisation

The House of Representatives on Tuesday unveiled plans to monitor the disbursement of multi-billion naira through Federal Account Allocation (FAAC) to the three tiers of government, sequel to the removal of fuel subsidy.

The resolution was passed sequel to the adoption of a motion of urgent public importance sponsored by Hon Ademorin Kuye, who underscored the need for the Parliament to deploy its legislative instrument to ensure effective utilisation in line with extant financial laws and regulations.

In his lead debate, Hon. Kuye who affirmed that amount shared by the Federal, States and Local Governments from the Federal Account Allocation Committee has increased significantly, due to the withdrawal of fuel subsidy, floating of the naira and other economic policies unanimously introduced by the government.

“The House is aware that 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% boost on naira income.

“The House is informed that States and local Governments received a total of N6.57 trillion in 2023, double the N3.16 trillion they received in 2022.

“The House is concerned that despite the availability of more cash to the states, 14.2 million more citizens continue to grapple with poverty even as Delta that received N217.74 billion; River N179.81 billion, Akwa Ibom – N145.57 billion, Bayelsa – N128 billion, have poverty rate of 13.1%, 7. 3%, 22.9%, 24.3% respectively according to a World report.

“The House is more concerned that most of these states with increase allocation faces significant challenge in payment of salaries, effective management of public institution, provision of public transportation and access to potable water as unemployment rate have increased to over 51% in some of them.

“The House is most 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,” he decried.

In the bid to ensure accountability of public funds, the House mandated the joint 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 FAAC and report back within four weeks for further legislative action.