Echotitbits – Nigeria News

Tag: FAAC

  • Enugu sets N870bn IGR target for 2026 as agencies are told to ramp up collections

    Enugu sets N870bn IGR target for 2026 as agencies are told to ramp up collections

    In a report by ThisDay, Enugu Governor Peter Mbah set an N870 billion internally generated revenue target for 2026, urging MDAs to intensify revenue mobilisation amid global uncertainty.

    The target is positioned as a core funding pillar for the state’s programme, implying stronger compliance drives, more automation, and broader clarity on what qualifies as collectible revenue.

    The funding mix also points to the continuing role of FAAC allocations and capital receipts, but with IGR expected to carry a heavier share of budget ambition.

    If pursued aggressively, the tension will be balancing expansion of the tax net with maintaining a business-friendly environment that doesn’t choke SMEs and investment.

    The Guardian noted the governor’s funding mix includes “N870 billion IGR” alongside other streams, while The Sun also reported the same direction around the N870bn target tied to the 2026 budget framework.

    Echotitbits take: Enugu’s ambition is plausible only with digitised collections, fewer leakages, and clearer taxpayer services. Watch reforms in land administration, transport levies, and business licensing—the fastest IGR accelerators and the most abused if not controlled.

    Source: The Punch – https://punchng.com/mbah-urges-agencies-to-boost-revenue-meet-budget-target/ January 7, 2026
    The Punch  January 7, 2026

    Photo Credit: The Punch

  • FAAC review flags weak responses from firms in road tax credit scrutiny

    FAAC review flags weak responses from firms in road tax credit scrutiny

    2025-12-29 09:00:00
    In an update published by Punch, FAAC’s post-mortem sub-committee reviewing the Road Infrastructure Tax Credit Scheme reportedly received responses from only three of seven companies contacted, raising fresh questions around transparency and project accountability.

    The scheme allows companies to build eligible roads and offset costs against future tax liabilities, making it a large fiscal lever that directly affects distributable revenue.

    The central issue now is governance: whether project valuation, scope, and delivery milestones align with tax credits claimed across participating firms.

    ThisDay reports that “a combined $577.6 million and N822.3 billion were utilised under the scheme,” while ARISE News says the panel is probing “the scale of deductions, transparency of project execution and accountability.”

    Echotitbits take: Tax-credit infrastructure can be smart—if procurement and monitoring are airtight. If not, it becomes a quiet drain on FAAC. Watch for the committee’s recommendations and whether disclosure rules get tougher.

    Source: The Punch — December 29, 2025 (https://punchng.com/faac-flags-poor-responses-in-road-tax-scheme/)
    The Punch 2025-12-29

    Photo Credit: The Punch

  • 2026 state budgets swell, but FAAC dependence and borrowing remain the backbone

    2026 state budgets swell, but FAAC dependence and borrowing remain the backbone

    Photo Credit: The Punch
    2025-12-28 09:00:00

    According to Sunday PUNCH, many state governments are entering 2026 with big spending plans but still lean heavily on federal allocations, loans and other non‑recurring inflows to balance their books.

    The report points to weak internally generated revenue (IGR) in several states and warns that capital projects may be squeezed first when revenue assumptions fall short.

    Analysts quoted in the report argue that over‑reliance on volatile transfers and debt can discourage local revenue innovation and exposes budgets to national shocks such as oil price swings.

    TheCable’s newspaper review also noted that “state governments are banking on federal allocations and loans to fund their 2026 budgets,” reinforcing the recurring pattern across multiple state appropriation proposals.

    Echotitbits take: The big question is execution—how much of the capital vote survives mid‑year reality? Watch Q1 and Q2 FAAC inflows, new bond/loan issuances, and whether states publish project‑level dashboards to prove capital delivery.

    Source: The Punch — December 28, 2025 (https://punchng.com/govs-bank-on-faac-loans-to-fund-2026-budgets/)

    The Punch 2025-12-28

  • FAAC windfall helps states cut bank exposure by over ₦547bn in one year

    FAAC windfall helps states cut bank exposure by over ₦547bn in one year

    Photo Credit: The Punch
    2025-12-27 06:00:00

    In a review published by Punch, Nigerian states and local governments reportedly reduced bank borrowing by about ₦547.5bn over the past year as federation revenue inflows improved.

    The story suggests higher allocations gave some subnational governments room to refinance or repay costly short‑term facilities, easing pressure on monthly deductions and debt‑service burdens.

    However, analysts note that debt reduction is only durable if states also strengthen internally generated revenue and curb recurrent leakages, especially as oil‑linked inflows remain volatile.

    Echotitbits take:
    This is a rare “good-news” fiscal signal, but it can reverse fast if FAAC cools or spending balloons. Watch the next quarter’s allocations, states’ IGR trends, and whether repayment coincides with better capital spending rather than fresh borrowing.

    Source: The Punch — December 27, 2025 (https://punchng.com/states-lgs-repay-n547-5bn-bank-debts/)
    The Punch December 27, 2025

  • Local Councils Press Tinubu for Direct Allocations as States Hold Trillions

    Local Councils Press Tinubu for Direct Allocations as States Hold Trillions

    Photo Credit: The Punch
    2025-12-23 09:00:00

    Reporting by The Punch indicates local government stakeholders are intensifying calls for direct disbursement of council allocations, arguing that state-level handling of the funds weakens grassroots service delivery.

    The push is framed as a continuation of the post–Supreme Court autonomy debate—demanding that councils receive money straight from the federation account rather than through state intermediaries.

    Supporters say direct access will improve accountability and ensure funds go to primary healthcare, rural roads, sanitation, and local economic activity instead of being diluted by state politics.

    State governments, however, have historically resisted reforms that reduce their control over local funding structures, meaning enforcement mechanisms—not just court rulings—remain the key battleground.

    Validation: Daily Times recalls the Supreme Court position, stating it is “unconstitutional for state governments to retain or manage funds meant for local councils.” Meanwhile, ABN TV repeats the core claim: “state governments received control over at least N7.43tn meant for local government councils…”

    Echotitbits take: Nigeria’s local governance problem isn’t only “how much money,” but “who controls it.” Watch for enforcement: executive orders, FAAC remittance redesign, and whether states respond with political workarounds.

    Source: The Punch — December 23, 2025 (https://punchng.com/autonomy-battle-lgs-demand-direct-funds-as-states-receive-n7-43tn/)
    The Punch 2025-12-23

  • FAAC shares ₦2.094trn to FG, states and LGAs from October revenue

    FAAC shares ₦2.094trn to FG, states and LGAs from October revenue

    PunchNG (illustrative image)
    2025-11-01

    From a Federal Ministry of Finance update, FAAC shared ₦2.094 trillion as federation allocation for October 2025, drawn from a gross total of ₦2.934 trillion.

    Monthly FAAC inflows shape state liquidity, wage payments, and capital spending, while also reflecting swings in oil receipts, VAT and other revenue lines.

    The breakdown highlights why fiscal planning remains sensitive to revenue volatility.

    Vanguard: “distributed a total of N2.094 trillion…”

    TheCable: “shared… N2.09 trillion for October.”

    Analysis/Echotitbits take: Volatility remains the headline risk. Watch how non-oil reforms affect VAT and statutory inflows, and whether states publish clearer spending outcomes tied to FAAC receipts.

    Source: Federal Ministry of Finance (Nigeria) — November 01, 2025 (https://finance.gov.ng/fg-states-lgcs-share-n2-094-trillion-from-a-gross-total-of-n2-934-trillion-for-the-month-of-october-2025/)

  • Revenue sharing formula review gains steam amid calls for deeper fiscal federalism

    Revenue sharing formula review gains steam amid calls for deeper fiscal federalism

    PunchNG (illustrative image)
    2025-08-24

    Writing in ThisDay, analysts argue Nigeria’s revenue sharing formula is due for a rethink, noting the structure continues to shape monthly allocations and fiscal behaviour across the three tiers of government.

    The debate ties into calls for deeper fiscal federalism so responsibilities and resources better align at subnational levels.

    Any review is likely to reopen negotiations around derivation, VAT sharing and constitutional constraints.

    PRNigeria: “RMAFC commenced a review of the revenue sharing formula…”

    The Punch (editorial): “for a new allocation formula…”

    Analysis/Echotitbits take: The hardest part is political bargaining over who gains and who loses. Watch for a formal RMAFC proposal, National Assembly timelines, and whether derivation/VAT sharing becomes the main flashpoint.

    Source: ThisDay — August 24, 2025 (https://www.thisdaylive.com/2025/08/24/issues-in-the-revenue-sharing-formula/)