The Will Nigeria
“There are genuine reasons to worry. The states keep piling debts while their revenues are not showing commensurate improvement. Furthermore, the consistent decline in the Federation Accounts Allocation Committee (FAAC) remittance, which is a major source of revenue for the three tiers of government, underlines a healthy fiscal condition and signals danger ahead,” said Daramola Olaleye, a financial management expert.
Olaleye’s views are not out of place: The Nigerian National Petroleum Corporation (NNPC) Limited has made zero remittance to FAAC since January 2022. This was due to dwindling oil revenue triggered by a slump in Nigeria’s production level. The country has witnessed unprecedented levels of crude oil theft and pipeline destruction in recent times which culminated in severe fiscal challenges for the nation. Additionally, money earned from residual oil export is spent on humongous petrol subsidy that sucks up the revenue.
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