Finance Minister, Kemi Adeosun has advocated for reforms in the way Federal Accounts Allocation Committee (FAAC) income is spent. Mrs Adeosun made the remarks at a FAAC retreat held in Akwa Ibom, in a speech presented on her behalf by the Permanent Secretary Federal Ministry of Finance, Dr Mahmoud Isa-Dutse

What is FAAC ?
FAAC is a joint committee consisting of representatives of the Federal, State and Local governments. The committee meets monthly during which revenues are shared. Sources of income for FAAC include oil revenue and taxes, customs and excise taxes, company income taxes (CIT), any sale of national assets, and surpluses from state-owned enterprises.

Under the present formula, the Federal government gets 52.68% of all revenue, while states and local governments get 26.72% and 20.60% respectively. Revenues from Value Added tax (VAT) are shared differently, with the Federal Government getting 15%, States 50% and Local Governments 35%.



READ MORE: https://nairametrics.com/read-kemi-adeosuns-big-idea-on-how-faac-should-be-spent/


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