Tag: fiscal federalism

  • 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/)