Former Secretary-General of the Arewa Consultative Forum, Mr. Anthony Sani, has condemned the recent decision by the House of Representatives to suspend a motion aimed at investigating the unaccounted N15tn in revenue held by the Federal Accounts Allocation Committee (FAAC).
The motion, which was sponsored by Mansur Soro, the member representing Darazo/Ganjuwa Federal Constituency in Bauchi State, was set to examine the discrepancies in the distribution of revenues allocated by FAAC to state and local government councils.
Soro pointed out that the constitutional provisions on revenue disbursement had not been followed. Citing Section 162(3) of the Constitution of the Federal Republic of Nigeria, Soro explained that “any amount standing to the credit of the Federation Account shall be distributed among the Federal and State Governments and the Local Government Councils in each State on such terms as may be prescribed by the National Assembly.”
Instead of adhering to the law, Soro argued that FAAC had implemented a policy of saving a portion of the collected revenues in a distributable pool account. He noted that the committee had justified this decision by citing concerns over inflation and the money supply, following changes in exchange rates and the removal of fuel subsidies.
Over the past 20 months, FAAC had reportedly saved N15tn in statutory revenue, which was due to the federal government, states, and local government areas, without providing clear guidelines or updates on how these funds would be distributed.
Soro also highlighted that the new savings policy lacked a legal framework to guide the management and distribution of the saved funds, including any accruing interest or investments.
Rather than addressing the issue, Soro was pressured to step down the motion for further consideration. In response, Sani expressed concern over the large sum being withheld by FAAC, especially when the three tiers of government are struggling with economic challenges.
He questioned the rationale behind holding N15tn, given the urgent need for funds to address socio-economic development. “The economic implication is more hardship and restlessness for the citizens, which is not beneficial for the government,” Sani added.
Human rights lawyer Abdul Mahmud also condemned the House’s decision, calling it “unfortunate.”
He argued that the suspension of the motion raises serious concerns about transparency and fiscal accountability in Nigeria’s public finance system. Mahmud emphasized that FAAC, as the statutory body responsible for revenue distribution, lacked the legal authority to withhold funds without a clear framework.
He warned that withholding such a large sum could undermine revenue-sharing principles, depriving subnational governments of essential resources for development, infrastructure, and salaries, potentially leading to financial mismanagement and corruption.
Good governance advocate and founder of Women Arise, Joe Key-Odumakin, also criticized the action, describing the N15tn as an alarming figure, equal to Nigeria’s national budget over a decade ago. She stressed the importance of a strong opposition in the National Assembly to hold the executive accountable.
In an exclusive interview, Soro reiterated his concerns, asserting that the withholding of statutory allocations was unconstitutional and violated principles of transparency and sound financial governance.
“In the interest of transparency and justice, the Federal Government and FAAC should have fully distributed all revenues accruing to the distributable pool account before any savings were made,” he stated.
Soro also suggested that the N15tn estimate might be conservative, pointing out that the savings policy had been introduced in June 2024, and the initial savings amounted to N790bn, indicating that the total sum could exceed N20tn.
Punch
