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Nigeria: Power - FAAC Approves N580 Billion for Projects
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Leadership (Abuja)
16 June 2008
Posted to the web 16 June 2008
Justus Nduwugwe
The Federal Government would be withdrawing $5 billion or about N580 billion from the excess crude account in order to fund the power projects, under the much-awaited power emergency, the details of which would be released after the scheduled June 19 meeting of the National Economic Council (NEC).
Already, the withdrawal of this staggering sum has been approved by the body in charge of the distribution of the federally-collected revenues, the Federation Account Allocation Committee (FAAC).
These were made known on Friday by the Minister of State for Finance, Mr. Remi Babalola while speaking to journalists at the end of the FAAC meeting held at the Sheraton hotel & towers, Abuja .
"We are going to take $5bn from the excess crude account. That has been approved by FAAC that it should be put to power projects based on the input that will come from the Presidency. And if that is done, the three tiers of government will own a substantial part according to their share of revenue from the revenue formula", the Minister stated.
According to him, "there would not be repayments. Once those assets are privatised, the proceeds would be shared according to the revenue formula".
The Minister also said that the meeting also resolved that the Federal Inland Revenue and Customers should not debit the Federation Account with bank charges with effect from July 1, 2008. "FIRS and Customs should bear the cost of the bank charges themselves", he said.
On the reconciliation of the payment of the Paris Club debts, the Minister stated, "Everything has been resolved and decisions taken unanimously by FAAC. That report was approved and the committee's recommendation taken".
Basically, he added, what the recommendation said is that some money would be distributed to those states which were wrongly debited. "We'll make sure that we pay substantial part of the money and additional money will be taken from excess crude account", he stressed.
Meanwhile, FAAC approved the distribution of N436.51 billion for the month of May, 2008 against N431.75 billion distributed in the previous month, thus showing an increase of N4.76billion or 1.10 per cent.
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The communiqué issued at the end of the meeting also showed that N439.82 billion came from the mineral revenue while the non-mineral revenue brought in N50.77 billion indicating total gross statutory revenue of N490.59 billion. The net statutory revenue, after deduction of cost of collection, transfer to excess crude was N316.73billion.
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