FAAC Agrees To Pay Arrears To 3-tiers Of Government

FAAC Agrees To Pay Arrears To 3-tiers Of Government

The Federation Accounts Allocation Committee has agreed to settle all arrears accruing to the the three tiers of government, Bauch State Governor, Yuguda of Bauchi, has said.

Yuguda disclosed this while briefing newsmen on Tuesday in Abuja on the outcome of the meeting of the committee constituted by President Goodluck Jonathan to resolve issues relating to the federation account. The State Commissioners of Finance, on Thursday June 13, staged a walkout on the Minister of State for Finance, Dr Yerima Ngama, over unresolved issues on the federation account.

Yuguda said: "An agreement has been reached on the Federation Account to resolve all outstanding issues to do with the accounts. As part of this, a commitment to settle the arrears of the Federation Accounts Allocation Committee (FAAC) payments has been agreed. This was the key development from the meeting of the Committee set up by Mr President to resolve this issue today," he said.

He said that the Committee also resolved to tackle the root causes of the revenue challenges facing the country, including bunkering and oil theft in a decisive and sustainable manner. Yuguda said that the meeting was held in a positive and constructive atmosphere and reaffirmed the determination of the Federal Government and the governors to continue working together for the common good of the country.

"To underscore the commitment reached at the meeting, it was also resolved that FAAC meeting will reconvene immediately," he said. Commenting on the unresolved issues on the account , Ngama said that there was a shortfall in revenue collection. "The main issues is that there was shortages, so the amount that we were supposed to statutorily share with the three tiers of government, we don’t have enough money to actually meet the amount to be distribute. "So the timing of payment  is not the issue," he said.

The Committee has Yuguda as chairman, Gov. Emmanuel Uduaghan of Delta State, Peter Obi of Anambra State and Ibrahim Dankwanbo of Gombe state. Others are the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala; the Minister of State, Finance, Dr Yerima Ngama; the Accountant General of the Federation, Mr Jonah Otunla and the Director General, Budget Office of the Federation, Dr Bright Okogu.

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