States now enjoy over 50% increase in FAAC under tinubu – APC professionals forum

Speaking at the inaugural edition of the Asiwaju Scorecard Series in Abuja, on Tuesday, the Chairman, Board of Trustees of the forum, Dr. Isa Yuguda, noted that the over 50 percent increase in FAAC was part of the positive fiscal impacts of the subsidy removal.

Presenting an extensive review of President Bola Ahmed Tinubu’s first year in office. The forum focused on two critical issues: the state of the Nigerian economy and the power sector.

In his address, Dr. Yuguda emphasized that President Tinubu did not create the existing economic challenges but has been effectively managing them to prevent further deterioration.

He therefore highlighted the President’s decisive actions, including the controversial removal of the fuel subsidy. He argued that the removal of the subsidy, long mired in corruption, was necessary and beneficial, pointing out that petrol importation had decreased by 50% since June 2023.

“The President did not create any of the problems people are talking about whether in the economy or in the other sectors. Infact what he met on ground would have created a worse situation if not properly handled but he is championing reforms that are required to pave way for a better society.

“We all recall how on assuming office, President Tinubu announced the removal of fuel subsidy but again for the avoidance of doubt he did not remove subsidy on PMS. It was not in the later part of the 2023 budget but surprisingly the Tinubu administration has had to bear the brunt for subsidy removal.

“Let me quickly add that my opposition to fuel subsidy has been well documented since the Goodluck Jonathan years when as chairman of a subcommittee on the economic meltdown, we recommended its removal after a discovery of the scam being perpetrated in the name of fuel subsidy.

“A recent study also showed that inspite of the COVID-19 lockdown of 2020, Nigeria still paid billions of naira for fuel subsidy even though in reality, domestic fuel consumption was very low.

 “Indeed, the President has today been proved right with the manner petrol importation has gone down by 50% since June 2023 and it is almost certain to go down more in a few months when the 650,000 barrels per day Dangote Refinery begin to produce PMS locally as well as the impending resumption of production at the Port Harcourt and Warri Refineries,” Yuguda claimed.

He further stated that the N1.2trilllon FAAC shared by states in April was unprecedented and laudable.

“If any Nigerian is still in doubt about how payment of subsidy has over the years strained the country’s resources, they must have seen how the subnationals now receive more than double what they used to get from Federation Account Allocation Committee (FAAC).

“At the last FAAC meeting, the total distributable revenue for April 2024 was N1.2trilllon, the highest ever disbursement in history. This time last year in the subsidy era, what was shared was N655.8bn.

“So the subnationals especially are receiving double their previous allocations and therefore have more funds for critical infrastructure and should be doing more to provide succor to the people.”

The address also touched on the Tinubu administration’s unification of exchange rates, a move that eradicated bolstered economic growth. “The economy grew by 3.46% in the fourth quarter of 2023, compared with 2.54% in the preceding quarter. Capital importation was up by 66% in Q4 of 2023 compared to a 33% decline in the previous quarter,” Dr. Yuguda stated.