Tax Reform Committee Suggests Daily Release of FAAC Funds

Committee on tax changes suggests daily FAAC fund disbursement

The Presidential Fiscal Policy and Tax Reform Committee has declared its intention to change the way that allotments are distributed across the three branches of government from a monthly to a daily basis.

The Federation Account Allocation Committee (FAAC), disbursement procedure is intended to be changed by this project.

This was disclosed by the committee's chairman, Taiwo Oyedele, on Monday, June 3 at a workshop for public consultation in Abuja. He emphasized the need to modernize the system by drawing comparisons with antiquated methods that date back to 1814.

FAAC will stop holding monthly allocation meetings and instead adopt a daily payment approach as a result of the proposed reform.

“We believe the system can be configured to credit the accounts of local, state, and federal governments daily,” Oyedele stated.

He stated that important parties, such as the Accountant General of the Federation, had endorsed the proposed revision.

The goal of this shift, according to Oyedele, is to streamline processes so that the monthly FAAC meetings may concentrate on national budgetary strategy instead of routine reconciliations, which junior accountants might handle.

Regarding Nigeria's fluctuating collecting expenses, which might range from four percent to more than thirty percent, Oyedele said, “If an agency cannot collect revenue at one percent, it should not be collecting it at all.

“We are serious about the one percent threshold, which should apply universally. Agencies unable to collect revenue at this rate should not be involved in collection at all. Government agencies should concentrate on their primary functions.”