Tag federation account allocation committee faac

The Tag Federation Account Allocation Committee (FAAC) is a committee responsible for allocating revenue generated by the Federation Account, which is a pool of funds collected from various sources such as:

  1. Oil revenues
  2. Non-oil revenues
  3. Value Added Tax (VAT)
  4. Customs duties
  5. Other sources

The FAAC is responsible for distributing the revenue among the three tiers of government in Nigeria, which are:

  1. Federal Government
  2. State Governments
  3. Local Governments

The committee is chaired by the Minister of Finance, Budget and National Planning, and its members include:

  1. The Governor of the Central Bank of Nigeria (CBN)
  2. The Accountant-General of the Federation
  3. The Minister of State for Finance, Budget and National Planning
  4. The Chairman of the National Economic Council (NEC)
  5. The Governors of the 36 states of Nigeria

The FAAC meets quarterly to review and allocate the revenue generated by the Federation Account. The committee considers various factors when allocating the revenue, including:

  1. The revenue needs of each tier of government
  2. The fiscal performance of each tier of government
  3. The development priorities of each tier of government
  4. The overall economic situation of the country

The FAAC allocation is based on a formula that takes into account the following:

  1. 52.7% for the Federal Government
  2. 26.7% for the State Governments
  3. 20.6% for the Local Governments

The FAAC allocation is a critical component of Nigeria's fiscal policy, as it helps to ensure that the revenue generated by the Federation Account is distributed fairly and efficiently among the three tiers of government.