Oyedele Denies Proposing Reduction Of FG’s Share In FAAC Allocation

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has denied reports making the rounds that his committee proposed a reduction in the federal government’s share of the Federation Account Allocation Committee (FAAC).

Rather, he disclosed that their recommendation focussed solely on Value Added Tax (VAT) within the FAAC framework.

The Matrix gathered that according to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) under the Presidency, the distribution of the country’s monthly revenue allocates 52.68% to the Federal Government, 26.72% to states, and 20.60% to local governments, disbursed through the Federation Account Allocation Committee (FAAC).

Earlier on Sunday, reports emerged in various section of the media that that the committee had proposed a shift in the revenue allocation of the FAAC, with 90% of the distribution given to the State and local government and FG maintaining only 10%.

Reacting to this in a statement on Sunday, Oyedele clarified that the report does not reflect the committee’s position, as their reforms focus solely on VAT within the FAAC framework and do not encompass all revenue allocated to the government’s account.

“We did not recommend a reduction in the federal government’s share from the federation account.

“Our recommendation is in respect of VAT revenue, to increase the share of states and local governments from 85% to 90% and for states to discontinue with their other forms of consumption taxes which constitute multiple taxation on businesses and individuals,” Oyedele said.