Frequently Asked Questions
- What does FAAC stand for?
FAAC is short for Federal Accounts Allocation Committee
- What is the function of the Federation account allocation Committee?
The functions of the Allocation Department include: Ensuring that resources are distributed among the beneficiaries of the Federation Account in accordance with Constitutional provisions and upholding the interpretations by the Supreme Court on areas requiring such clarification.
- Who are the members of the FAAC committe?
The core members of the FAAC Committee Include: 1. The Honorable Minister of Finance Budget and National Planning - Chairman, 2. 36 State Commissioners of Finance - Members. 3. CBN representative – member 4. RMAFC representative – member 5. Accountant General of the Federation – member 6. Director of Home Finance – member/secretary 7. Permanent Secretary (FMFBNP) – member 8. Secretary of Finance of FCT administration – member 9. Two persons appointed by the President of Nigeria – members Other Supporting Workers Include 1. Home Finance Department (FMFBNP) – FAAC Secretariat 2. 36 State Accountant Generals. – Non-member 3. Office of the Accountant General of the Federation (OAGF) -Secretariat of the Technical Sub-Committee Meeting
- What is the Allocation formula for FAAC
The Federal Government receives 52.68% of the total sum while the State and Local governments receive 26.72% and 20.6-% respectively. A 13% derivation fund is shared among the oil-producing states. The Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) all receive a portion of their generated revenues as cost of revenue collections.
- Who Chairs the FAAC committee?
The Honorable Minister of Finance Budget and National Planning
- How is deduction carried out for states?
Deductions are processed as available. This means that once the deduction is successfully processed, viz the deduction is approved by the Honorable Minister of Finance, the Home Finance Department of the Ministry transmits the original file to the OAGF (who then implements the deduction) and then the deduction is adopted at the FAAC meeting; the deduction will last until the end of the tenure of the deduction, or as otherwise agreed at as subsequent FAAC meeting.
Copyright 2021 FAAC. Designed By Logitex Reconnaissance Solutions Limited