FAAC shares N900bn of N1.9tn revenue, N1tn for foreign reserves

FAAC shares N900bn of N1.9tn revenue, N1tn for foreign reserves 

The 36 state governors have endorsed the proposal of the Federal Government not to share the entire revenue of N1.9tn that accrued to the federation by Federation Accounts Allocation Committee.

It was agreed that only N900bn should be shared while N1tn be transferred to the Central Bank of Nigeria and converted to foreign reserves.

This was the outcome of a meeting held by the governors on Wednesday night in Abuja, a report by The Whistler stated.

The Federal Government had proposed that the sharing of the entire N1.9tn was not a good idea because it would increase the amount of money in circulation and cause further inflation.

Nigeria’s inflation stands at about 22.7 per cent based on figures released by the National Bureau of Statistics.

The report quoted one of the governors at the meeting as saying in view of the removal of fuel subsidy, the Federal Government raised concerns that if the entire N1.9tn was shared, it could put pressure on the naira and affect the price of fuel.

Rather than sharing the entire N1. 9tn, the governors reportedly agreed that N900bn be shared while the balance of N1tn be used to shore up the nation’s external reserves.

Figures obtained from the CBN showed that as of July 18, Nigeria’s external reserves stood at $33.99bn.

The idea, it was learnt, was to help the CBN raise the foreign reserves to $40bn from the current $33bn.

The revenue of N1.9tn is the highest amount generated in one month in the history of Nigeria.

The amount almost tripled the N786.161b shared in June and N655.93bn in May.