FAAC meeting ends in deadlock as oil price crash veils effect of new VAT

The monthly federation account allocation committee (FAAC) meeting ended inconclusively on Wednesday.

Hassan Dodo, the director of information at the ministry of finance, budget and national planning, addressed journalists briefly after the meeting ended in Abuja.

However, he did not give further details.

He said, “gentlemen of the press, there is no going to be usual briefing today because the meeting is inconclusive”.

NAN reports that the meeting was well attended by members and lasted for several hours.

Commissioners of finance from all states in the country convene in Abuja every month for the disbursement of revenue generated in the previous month.

The meeting is usually headed by Zainab Ahmed, the minister for finance, budget and national planning, with Ahmed Idris, the accountant general of the federation, in attendance.

It was gathered that the amount presented by the revenue-generating agencies for disbursement was lesser than expected.

Although the price of crude oil began to fall in February, it had been expected that the new 7.5% value-added tax which was implemented for February would slightly augment the loss.

It is not uncommon for the meeting to end in deadlocks as commissioners query figures presented by the Federal Inland Revenue Service (FIRS), the Nigerian National Petroleum Corporation (NNPC) and other revenue-generating agencies.