The Federation Account Allocation Committee (FAAC) held an extra-ordinary meeting, Monday, to share the revenue received from the Nigerian Liquefied Natural Gas (NLNG) to the three tiers of government.
A total of N359,374,355,607.60 was collected by the Federal Inland Revenue Service and shared among the Federal, States and Local Governments. The Federal government was allocated N189,318,410,534.03 (52.68%); the 36 States got N96,024,827,818.35 (26.72%) while the Local Governments got N74,031,117,255.16 (20.60%).
Also at the meeting, the CBN Governor, Mr. Godwin Emefiele informed State Governments that the Federal Government was worried about the inability of some States to meet their obligation to their workers in the area of monthly wages.
He noted that the inability of most states to pay salaries was due to the huge debt hanging on their necks. Emefiele observed that most States take short term loans for long term projects and servicing their monthly obligations to the banks hampers cash flows, thereby restricting them from payment of salaries.
The CBN Governor also informed the States that the apex bank was willing to assist such States in restructuring the loans owed the commercial banks. He directed the affected States to submit to the CBN, on or before 8th July, 2015, the list of their loan obligations and other indebtedness to enable the CBN assist them restructure the loan to a long tenure. He explained that the assistance by the CBN was in the form of concessionary rates to the interested States.
Emefiele said the CBN will schedule a meeting with the States upon receipt of the required data and expressed optimism that the process will be completed before next week. He advised recipients of the CBN loans to prioritize salary payment as its first line charge, before meeting other obligations.
The meeting was chaired by Permanent Secretary, Federal Ministry of Finance, Mrs. Anastasia Daniel-Nwaobia. Also present were the Accountant-General of the Federation, Alhaji Idris Ahmed, CBN Governor, Mr. Godwin Emefiele, State Commissioners of Finance, State Accountants-General, and Representatives of Federal Inland Revenue Service and Nigeria Customs Service.
Patricia Deworitshe
AD (Press)
Federal Ministry of Finance
