The Socio-Economic Rights and Accountability Project (SERAP) has issued a seven-day deadline to the Federal Capital Territory (FCT) Minister, Mr. Nyesom Wike, and the governors of Nigeria’s 36 states.
The ultimatum demands the provision and public disclosure of documents detailing the expenditure of trillions in Federation Account Allocation Committee (FAAC) allocations received by the FCT and the states since 1999.
Furthermore, SERAP has urged Wike and the state governors to engage the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC). The aim is to jointly oversee the FAAC allocations’ expenditure by the states and the FCT and investigate any corruption allegations associated with the allocations.
This request from SERAP comes in the wake of reports that the FAAC disbursed N1.123 trillion to federal, state, and local governments in March 2024 alone, with the states receiving N398.689 billion of the total sum.
In a Freedom of Information (FoI) request signed by SERAP Deputy Director, Kolawole Oluwadare, on April 20, 2024, the organization emphasized that Nigerians have the right to know how public funds, including FAAC allocations, are spent.
SERAP alleges that “trillions of FAAC allocations received by Nigeria’s 36 states and the FCT have seemingly disappeared,” leading to human costs that directly affect the social and economic rights of vulnerable Nigerians.
The FoI requests highlight that despite increased FAAC allocations to states and the FCT, millions of residents continue to experience extreme poverty and lack access to basic public goods and services.
SERAP also points out that the Federal Government’s reported removal of petrol subsidy and the floating of the exchange rate have led to increased FAAC allocations to states and the FCT. However, there has been no corresponding improvement in the security and welfare of millions of Nigerians.
The organization alleges that FAAC allocations received by the states and the FCT are characterized by mismanagement, fund diversion, and abandoned projects. It also claims that FAAC allocations have been spent on other activities such as election campaigns and political patronage.
SERAP argues that publishing the documents detailing the spending of FAAC allocations would promote transparency, accountability, and reduce corruption risks. It would also enable Nigerians to actively participate in the implementation of projects funded by the FAAC allocations.
SERAP cites the report that some 140 million Nigerians are poor as an indication of corruption and mismanagement in the spending of trillions of naira in FAAC allocations.
According to SERAP’s information, the FAAC disbursed N1.123 trillion to federal, state, and local governments in March 2024. State governments received N398.689 billion, local government councils received N288.688 billion, and mineral-producing states received an additional N90.124 billion (13% of mineral revenue). In February, states collected N336 billion.
As per the Nigeria Extractive Industries Transparency Initiative (NEITI), the federal, states, and local governments shared N10.143 trillion from the Federation Account as statutory revenue allocations in 2023, with states collecting N3.585 trillion.
SERAP urges the provision of details on the transparency and accountability mechanisms in place to ensure that the trillions of naira of FAAC allocations are not embezzled, misappropriated, or diverted.
SERAP expresses concern about the ongoing lack of transparency and accountability in the spending of FAAC allocations and requests that the recommended measures be implemented within seven days.
