The inability of the Federal Government
to convene the monthly Federation Accounts Allocation Committee meeting
may delay the payment of August salaries for government workers.
The meeting, which usually holds between
15th and 20th of every month, has yet to be convened with seven days to
the end of this month.
It usually takes between seven and 10
days from the day the meeting is held before workers’ salaries are paid,
according to sources at the Ministry of Finance.
“Going by this analysis, it implies that
even if the meeting is held any moment from now, workers may not be able
to receive their August salaries until next month,” one of the sources
said.
The source said the delay in holding the
meeting was due to revenue challenges, which the country had been
grappling with in the last few months.
There have been persistent shutdowns and
shut-in of trunks and pipelines at various oil and gas terminals, which
have had a negative impact on revenue performance.
A top government official told our
correspondent on Monday that a majority of the revenue-generating
agencies had yet to remit any money to the federation account.
It was learnt that the meeting, which was
originally scheduled to hold last week, could not be held because
enough revenue had not been remitted to the federation account.
The official said, “You know we have been
having revenue challenges and the money we usually share is taken from
the federation account, which is funded by revenue-generating agencies.
“Some of these agencies are still
generating revenues and as of last week when the meeting was supposed to
be held, we couldn’t hold it because there was not enough revenue for
sharing.”
Some of the agencies remitting funds to
the federation account are the Nigerian National Petroleum Corporation,
the Federal Inland Revenue Service, the Nigeria Customs Service and the
Central Bank of Nigeria.
The FAAC committee is made up of
commissioners of finance from the 36 states of the federation; the
Accountant-General of the Federation, and representatives of the NNPC.
Others are representatives of the FIRS, NCS, CBN as well as Revenue Mobilisation Allocation and Fiscal Commission.
The federation account is currently being
managed through a legal framework that allows funds to be shared under
three major components – statutory allocation, Value Added Tax
distribution; and allocation made under the derivation principle.
The 2015 budget is targeting a gross federally collectible revenue of N9.78tn to be shared by the three tiers of government.
The figure, when spread over a 12-month
period in which the amount is to be generated, translates into a monthly
revenue of N815bn or N2.44tn per quarter.
But figures obtained from the Finance
ministry revealed that between January and May this year, the country
has only generated the sum of N1.74tn as gross revenue.
When the actual N1.74tn revenue is
compared to the budgeted target of N4.07tn that should have been earned
within the five months period, it translates into a revenue shortfall of
57.3 per cent.
A breakdown of the actual revenue
revealed that the sum of N416.04bn was generated in January; N401.46bn
in February; while the months of March, April and May had N315.04bn,
N282.06bn and N324.96bn, respectively.
When contacted, the Director of Press, Ministry of Finance, Mr. Marshal Gundu, said that the meeting would be held on Wednesday.
In his reply to a text message earlier
sent by our correspondent, he said, “The technical session is on Tuesday
and the FAAC meeting is coming up Wednesday, please.”
Punch
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