FAAC Allocations Surge After Fuel Subsidy Removal, But Bauchi, Jigawa, Gombe See No Gains

A new report has revealed that people in the states of Bauchi, Jigawa and Gombe have not received any benefits of the increased Federal Account Allocation Committee (FAAC) allocation, especially after fuel subsidy removal.

The 2023 States' Annual Report of FAAC, which was accessed by the News Agency of Nigeria (NAN), indicated that from January 2023 to May 2023, before the subsidy was removed, the 36 states received a total net allocation of N1.19 trillion. However, after fuel subsidy removal, the FAAC disbursement to the 36 states doubled from June to December.

From June 2023 to December 2023, the net allocation for the 36 states increased from N1.19 trillion to N2.31 trillion, a rise of about N1.12 trillion. Between January 2024 and June 2024, FAAC distributed a total of N2.16 trillion to the 36 states.

According to the sharing formula, the federal government gets 52.68% of the total allocation, while states receive 26.72% and local government areas (LGAs) get 20.6%.

This monthly allocation is intended to speed up the development of important economic and social projects at the local level, and meant to help ease the effects of economic challenges and support programs that improve the well-being of the people.

It's important to note that this amount does not include the 20.6% allocation for the 774 local government areas (LGAs), which was also paid to the states through a joint account.

Chairman of the New Nigeria Peoples Party (NNPP) in Gombe State Rambi Ayala said, "A lot needs to be done in the state. For example, in my own area, Billiri LGA, I haven't seen any significant projects since the ending of fuel subsidy," Premium Times reported.

"The general hospital in Billiri is in terrible condition, with critical facilities in disrepair, and people have no idea how the funds are being used. Also, we are in the farming season, yet, there aren't enough inputs and equipment being provided to improve production and livelihood of farming communities."

Last week, NLC President Joe Ajaero criticized the government's handling of the fuel subsidy issue, saying the labor movement had predicted the problems, but they were dismissed by the officials, who claimed they didn't understand basic economics.