‘Poverty persists’ — reps to probe utilisation of N6.57trn FAAC allocation to states in 2023

The house of representatives has resolved to investigate the utilisation of funds from the federal account allocation committee (FAAC) by states and LGAs in 2023.

The lower legislative chamber passed the resolution during the plenary session on Tuesday following the adoption of a motion sponsored by Ademorin Kuye, a lawmaker representing Somolu federal constituency of Lagos.

In 2023, FAAC distributed N6.57 trillion to the 36 states of the federation and 774 LGAs.

The FAAC monthly allocation helps to drive development and aid governments at various levels in fulfilling their duties.

The current FAAC revenue-sharing formula allocates 52.68 percent to the federal government, 26.72 percent to states, and 20.60 percent to local governments.

While leading the debate, Kuye said FAAC allocation has increased significantly due to the withdrawal of petrol subsidies, the floating of the naira and other economic policies of the federal government.

He said the N6.57 trillion received by states in 2023 increased from N3.16 trillion they received in 2022.

The legislator said despite the “availability of more cash to the states, 14.2 million more citizens continue to grapple with poverty”.

“Most of these states with increased allocation face significant challenges in payment of salaries, effective management of public institution, provision of public transportation and access to potable water as the unemployment rate has increased to over 51 percent in some of them,” the lawmaker said.

He said 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”.

The motion, which was not debated, was unanimously adopted when it was put to a voice vote.

The house subsequently asked the 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” by states and report back within four weeks for further legislative action.

It is unclear how federal lawmakers intend to investigate states over the spending of their FAAC allocation.

The 1999 constitution does grant the national assembly the express power to exercise oversight functions on states, including how they spend their funds.

States have the autonomy to determine how their finances are spent, with state legislatures responsible for scrutinising such expenditures.