Federal Govt Proposes Drastic Reduction In FAAC Share: FG To Take 10%, States & LGAs 90%

Oct. 13, 2024 - TheNigerialawyer

The federal government is proposing a major shift in the distribution of funds from the Federation Account Allocation Committee (FAAC). This was revealed by Mr.

Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, in a statement on his X (formerly Twitter) handle. Oyedele disclosed that the federal government is set to take only 10 percent of the total FAAC allocations, while states and local governments will receive a combined 90 percent.

This change in the sharing formula is part of broader reforms aimed at eliminating numerous “nuisance taxes” and streamlining the tax collection process. Oyedele noted that the federal government had to make this concession to get states on board with a centralized and more efficient tax collection system.

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