Reps Set To Investigate Allocation And Expenditure Of States’ FAAC Funds

Reps Set To Investigate Allocation And Expenditure Of States’ FAAC Funds

The House of Representatives has taken decisive action by instructing its pertinent Committees to conduct a thorough investigation into the utilization of increased allocations received by states from the Federal Account Allocation Committee (FAAC)….READ ALSO Tinubu’s Economic Vision: House Of Reps Forecasts Transformation In Two Years

This decision stemmed from a motion raised under matters of urgent public importance by Ademorin Kuye, the representative of Shomolu Federal Constituency, Lagos State, during a plenary session on Tuesday.

Kuye highlighted that the recent surge in funds distributed by FAAC to states and local governments, attributed to the removal of fuel subsidy and other economic policies implemented by the administration of President Bola Tinubu, has led to a substantial increase in revenues. In 2023, a total of N6.57 trillion was allocated, doubling the N3.16 trillion disbursed in 2022.

Despite this windfall, Kuye expressed concern over the persistent poverty affecting 14.2 million more citizens and the escalating unemployment rate, which has surpassed 51 percent in some areas. He noted the challenges faced by states in meeting salary obligations and effectively managing public institutions, raising questions about the efficient utilization of the increased funds.

“State governors have brazenly failed to complement the Federal Government’s poverty alleviation efforts and are not driving the necessary economic transformation to alleviate citizen suffering,” Kuye remarked.

In response to these concerns, the House directed its Committees on Special Duties, National Planning and Economic Development, and Inter-Governmental Affairs to scrutinize the spending and utilization of the augmented FAAC allocations by states. The committees are tasked with delivering a comprehensive report to the House within four weeks for further legislative action.

This investigative move underscores the House’s commitment to ensuring transparency and accountability in the management of public funds, aiming to foster socio-economic development and alleviate poverty across Nigeria.