Reps rescind decision to probe utilisation of N6.57trn FAAC allocation to states in 2023

The house of representatives has rescinded its decision to investigate the utilisation of funds from the federal account allocation committee (FAAC) by states and LGAs in 2023.

On February 13, the lower legislative chamber moved to probe states and LGAs over their spending of FAAC allocation.

The decision to institute a probe followed the adoption of a motion sponsored by Ademorin Kuye, a lawmaker representing Somolu federal constituency of Lagos.

Kuye had said FAAC allocation increased significantly in the past months due to the removal of petrol subsidies, the floating of the naira and other economic policies of the federal government.

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

“Most of these states with increased allocation face significant challenges in payment of salaries, effective management of the 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,” he had said.

He had 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”.

Moving a motion to rescind the decision at the plenary session on Tuesday, Francis Waive, chairperson of the house committee on rules and business, said it is not within the powers of the national assembly to legislate for states.

But Kuye opposed the motion saying sections 2 and 162 of the constitution give the national assembly the power over public funds.

He said immediately after the motion was passed last week, President Bola Tinubu held a meeting with governors, urging them to redouble their efforts in tackling poverty.

Kuye also said Lagos disbursed millions of funds to traders and that the national assembly should not hesitate to take tough decisions.

But the lawmaker was countered by Solomon Bob from Rivers who said though the motion has good intentions, the right thing should not be done with a wrong process.

Bob said the national assembly does not have the power to probe how states utilise funds from FAAC.

 When the motion was put to a voice vote by Benjamin Kalu, the presiding officer, the “ayes” were louder than the “nays”. 

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.