FAAC, States To Share N60bn Arrears

The committee set up by President Goodluck Jonathan to resolve the crisis rocking the Federation Accounts Allocation Committee (FAAC) on sharing of revenue accruing to the three tiers of government has agreed to clear the arrears of funds accruing to state governments.

The Finance Commissioners from the 36 states of the federation boycotted this month’s FAAC meeting following alleged refusal of the payment of over N160 billion augmentation for January and February 2013.

Briefing journalists after a meeting with the Minister of Finance, Dr Ngozi Okonjo-Iweala, yesterday, the Governor of Bauchi State, Isa Yuguda said the committee had reached an agreement to resolve all outstanding issues having to do with the federation account.

The Minister of State for Finance, Yerima Ngama, however, did not specify when the arrears would be paid.

President Jonathan had last Monday met with 25 governors or their deputies over the crisis on sharing of revenue accruing to the three tiers of government and a committee was set up to resolve the impasse.

The four-member reconciliation committee comprised Governors Isa Yuguda of Bauchi, Emmanuel Uduaghan of Delta, Ibrahim Dankwambo of Gombe, and Peter Obi of Anambra states.

Speaking on the outcome of the Monday night meeting held at the State House, Abuja, presidential spokesman, Dr Reuben Abati, had told journalists that a four-man committee was set up to resolve the crisis.

During FAAC meeting last Thursday, Commissioners for Finance in the states had staged a walk out on the Minister of State for Finance, Yerima Ngama, who chaired the committee meeting.

Abati said the president summoned the meeting with governors to resolve the impasse.

The presidential spokesman, did not, however, comment on the crisis in the Nigeria Governors Forum which led to only 16 governors holding a meeting in Abuja before meeting with the President.

Only governors loyal to Plateau Governor and self-proclaimed chairman of the NGF, Jonah Jang, attended Monday’s illegal governors meeting prior to the meeting with the President.

Abati had promised that the committee was to meet with the Minister of Finance, Ngozi Okonjo-Iweala, and Minister of State for Finance, Mr. Yerima Ngama, yesterday, to resolve the matter.

He acknowledged that the State House meeting was “very friendly” and that the governors were happy at the president’s disposition to resolving the matter.