FG raises alarm, says federation account over stressed

FG raises alarm, says federation account over stressed

- The federal government has raised an alarm that the federation account is over stressed

- This was disclosed by Elias Mbam, the chairman of the Revenue Mobilisation Allocation and Fiscal Commission

- Mbam also spoke about poor Internally Generated Revenue (IGR) by state governments

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Engr. Elias Mbam, the chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has raised the alarm that Nigeria's Federation Account is over stressed.

According to The Nation, Mbam while receiving an Annual States Viability Index (ASVI) from Yushau A. Shuaib in Abuja said this is as a result of the unending demands made by the three tiers of government on the account.

He went on to note that the account was stressed by the over-dependence in the monthly Federation Account Allocation by the three tiers of government.

The RMAFC chairman called on state governments to develop strategies to boost their internal revenues to reduce the stress on the Federation Account.

According to the RMAFC boss, many states cannot survive without the monthly disbursement from the Federation Account.

It was gathered that seven states are insolvent due to very poor IGR that were far below 10% of their receipts from the Federation Account.

Earlier, Legit.ng gathered that the Federation Accounts Allocation Committee (FAAC) shared N651.18 billion Federation Account Revenue to the federal, states and local governments councils and relevant agencies for the month of June.

Henshaw Ogubike, Director Information, Press and Public Relations of FAAC, announced the figures in a statement in Abuja.

Ogubike said the monthly meeting, which held by virtual conferencing, was chaired by Accountant General of the Federation, Ahmed Idris.

He explained that the gross statutory revenue available in June was N524.52 billion while the gross revenue from the Value Added Tax (VAT) was N128.826 billion and the revenue from the Exchange Gain was N42.832 billion.

In a related development, the National Bureau of Statistics (NBS) in its 2019 poverty and inequality report revealed that Sokoto, Taraba and Jigawa state have the highest poverty rates in the country.

The data published by the NBS showed that nine in 10 people earn less than N377 per day in Sokoto, Taraba and Jigawa states.

The agency further disclosed that following closely behind the aforementioned states are Ebonyi and Adamawa, where eight in ten earn N377 daily.

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Source: Legit.ng

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