The Federation Account received a significant boost in the first three quarters of this year, with the Federal Accounts Allocation Committee (FAAC) reporting that a total of N2.359 trillion in outstanding revenue arrears was reconciled and paid to the federal government and subnational governments between January and September.
Organisations, which attended the November 17 meeting in Abuja, were Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), representatives of the states’ Commissioners of Finance and Accountants-General Forum, as well as representatives of Revenue Generating and Accounting Agencies.
According to the FAAC Sub-Committee, N370.43 billion was recovered and paid in September alone. This amount included $52.95 million in crude-related arrears remitted at an exchange rate of N1,474 to the dollar, along with royalty and domestic gas components from both Nigerian National Petroleum Company (NNPC) Limited, and Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Specifically, the September inflow pushed the cumulative reconciliation total for the first nine months of the year to N2,359,628,451,600.66, the highest in recent FAAC reconciliation cycles. Breakdowns presented in the report showed that reconciliation inflows varied month to month.
In January, N367.37 billion was reconciled; it was N227.15 billion in February; N175.98 billion in March; N259.85 billion in April; N247.04 billion in May; N213.37 billion in June; N116.39 billion in July; N382 billion in August; and N370.43 billion in September, reflecting the irregular nature of the arrears and the speed of inter-agency verification.
