27/08/2025
https://www.facebook.com/share/p/17AqB46pZv/
OPINION:
In April, 2023, Federal, State and Local Governments shared 650Billion naira FAAC. In July, 2025, about 2 years 3 months later, the three tiers of government shared 2Trillion naira with States and LGAs receiving over 40 percent. This about 300 percentage increase in the monthly FAAC shared is possible as a result of fuel subsidy removal, floating of the naira among other reforms of the sitting government.
It should be noted that the increase in federal government revenue which is reflecting in the FAAC allocation is not necessarily due to productivity in other sectors, but ultimately as a result of fuel subsidy removal. Now, what the fuel subsidy removal has done is to skyrocket cost of living, increase poverty rate and enlarge the number of people confronting multifaceted poverty crisis to about 133 million people.
TAKE ALWAYS:
- The federal government might have had "good intentions" in removing fuel subsidy among other reforms.
- The removal of the fuel subsidy has removed money from the pockets of the masses and dropped in the pockets of the federal government.
- As a result, the Federal government has increased FAAC allocations to all levels of government for a purpose.
- The purpose presumably is to provide infrastructure, improve education, health, power supply and reduce poverty.
- But, the outcry out there indicates that poverty and general hardship are on the increase.
- Civil servants whose minimum wage has been increased to about 100% recently are crying more than before that their take home is not taking them home even with the increment.
- In the midst of these, Some State governors and other politicians in the opposition are defecting into the rulling party claiming that the economic reforms are yielding positive results and thus should be sustained. Meanwhile, the position of these defected governors seems to contradict sharply with the reality confronting the masses, judging from the public outcry.
- Expectedly, no one expect state governors including those in the opposition to say that the economy is not doing well. How will you expect someone getting three times what he used to get to now say the economy isn't doing well. You can now know why the defections are unavoidable.
QUERIES:
- What is the purpose of the increment in FAAC to the state Governments and LGAs?
- Has the increment made the States and LGAs to expand provision of quality education, health and general infrastructure and reduce the level of poverty and general hardship?
- Should we blame the Federal Government for increasing FAAC to States and LGAs?
Going forward, if the government at all levels fail to build trust in the people through the ongoing reforms by ensuring that the reforms better the living standards and conditions of people, it will be difficult for the people to trust any other reforms that might be introduced in the immediate and near future.
- Augustine Kiki