Presidential Committee Chairman Denies Proposal to Reduce FG’s FAAC Allocation to 10%
Abuja, Nigeria – October 13, 2024
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has refuted reports suggesting the committee proposed reducing the federal government’s share of the Federation Account Allocation Committee (FAAC) to 10%.
Oyedele clarified that the committee’s reforms focus solely on Value Added Tax (VAT) within the FAAC framework, recommending a 90% share for states and local governments, and discontinuation of other consumption taxes.
The current FAAC allocation formula allocates 52.68% to the federal government, 26.72% to states, and 20.60% to local governments.
Oyedele’s statement contradicts earlier reports of a proposed shift in revenue allocation, where 90% would go to state and local governments.
