FAAC February 2025 Meeting Held in Abuja After Postponement

The Federation Account Allocation Committee (FAAC) held its meeting on Monday 24th February 2025 in Abuja to share revenues to federal, state and local governments in the country.

Recall that FAAC meeting scheduled for Wednesday 19 February 2025 was postponed due to a disagreement between states and the Nigerian National Petroleum Company (NNPC) over unpaid remittances.

Four days after postponement, the meeting took place on Monday 24 February 2025 chaired by Mr. Wale Edun, Honourable Minister of Finance and Coordinating Minister of the Economy.

Federation Account Allocation Committee (FAAC) meeting. Mrs Oluwatoyin Sakirat (Accountant General of the Federation) and Wale Edun (Honourable Minister of Finance and Coordinating Minister of the Economy)
Mrs Oluwatoyin Sakirat (Accountant General of the Federation) and Wale Edun (Honourable Minister of Finance and Coordinating Minister of the Economy at the meeting in Abuja)

The Federation Account Allocation Committee (FAAC) is a government body in Nigeria responsible for the distribution of revenue accrued to the Federation Account among the three tiers of government—federal, state, and local governments.

Key Functions of FAAC

  1. Revenue Allocation – Ensures fair distribution of federally collected revenue, including oil earnings, taxes, and other sources.
  2. Fiscal Coordination – Works to maintain financial stability among federal, state, and local governments.
  3. Transparency & Accountability – Provides oversight and ensures funds are allocated according to constitutional provisions.
  4. Monitoring & Reporting – Tracks revenue inflows and advises on fiscal policies affecting allocation.

Revenue Sources Distributed by FAAC

  • Oil Revenue (Petroleum Profit Tax, Royalties, etc.)
  • Company Income Tax (CIT)
  • Value Added Tax (VAT)
  • Customs and Excise Duties
  • Independent Revenue (Government agency earnings)

How FAAC Allocates Funds

Funds are shared based on a predefined formula set by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC). The sharing percentages typically include:

  • Federal Government: ~52.68%
  • State Governments: ~26.72%
  • Local Governments: ~20.60%

Additionally, special allocations are made for the Derivation Fund (13%) for oil-producing states.

FAAC Monthly Meetings

FAAC meets monthly to distribute revenue and discuss financial issues affecting the country’s economy. These meetings include representatives from the Ministry of Finance, state governments, and other financial institutions.

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