Money market

FG should return N228bn loan for 2023 polls — FAAC



In a recent report by the Postmortem Sub-Committee of the Federal Account Allocation Committee (FAAC), it has been recommended that the Federal Government refund the loan of approximately N228 billion it took from the non-oil excess revenue account to finance the 2023 general elections.

The report, signed by sub-committee Chairman Kabir Mashi, sheds light on the inflow into and payments from the non-oil excess revenue account from January 2020 to October 2023.

Kabir Mashi, a former acting Chairman of the Federal Inland Revenue Service (FIRS) and a Federal Commissioner of the Revenue Mobilization and Fiscal Allocations Commission (RMAFC), represents Katsina State.

His expertise and experience in financial matters make his recommendations significant.

The genesis of this report can be traced back to a FAAC Plenary meeting held in September 2023, during which concerns were raised about substantial deductions from the Non-Oil Excess Revenue Account.

These concerns prompted a deeper investigation into the matter.The primary focus of the investigation was the significant amount of money being borrowed by the Federal Government. To gather more information, the sub-committee wrote to the Office of the Accountant-General of the Federation (OAGF) and requested details regarding the Non-Oil Excess Revenue Account Ledge.

According to the sub-committee’s findings, the loan taken for the 2023 general elections accounts for approximately 26% of the total deductions made between January 2020 and October 2023. This raises concerns about the sustainability of such borrowing practices.

However, the loan for the general elections stands out due to its significant amount and potential impact on the country’s finances.

The recommendation for the Federal Government to refund the loan reflects the sub-committee’s concerns about the long-term implications of excessive borrowing.

The report by the Postmortem Sub-Committee of FAAC highlights the need for the Federal Government to refund the N228 billion loan taken from the non-oil excess revenue account for the 2023 general elections.

The findings of the sub-committee read: “That the total inflow into the Non-oil Excess Account for the period January 2020 to October 2023 was N2,607,067,427,659.48

“That the total amount distributed to the three tiers of Government was the sum of N1,035,298,000,000.00 in the period under review;

“Total deductions from the Account for other purposes amounted to N846,159,187,753.64 in the period under review;

“That the sum of N20,009,001,423.57 was deducted as Refund of Gas Flared penalty to NMDPRA;

“That the sum of N20 billion was transferred to the 20% of the Amount due to States on ECA withdrawals Account;

“That the sum of N136,571,812,718.58 was used for Refund of PAYE to States and the sum of N31,311,515,329.52 for FCT respectively;

“That FGN borrowed the sum of N41,844,164,400.00 for the payment of final Settlement of Ground Rent Liabilities;

“That FGN borrowed the sum of N227,998,501,190.36 for the funding of 2023 General Elections;

“That amount borrowed by FGN for Payment of Contingencies to the Office of the National Security Adviser was N2,750,000,000.00;

“That the sum N28,608,118,834.81 was deducted from the Account to Refund Paris Club Loan Deduction from SRA of FCTA;

“That the difference between Foreign taxes figures on Component Statement and Actual was deducted from the Non-Oil Account to the tune of N73,066,073,856.80;

“The sum of N30,000,000,000.00 was deducted from the Account for refund to CISS being amount borrowed for FIRS’s Priority Projects;

“That there was no record that the amounts borrowed by FGN were paid back.”

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