FAAC Calls on FG to Settle N228 Billion Election Loan

The Postmortem Sub-Committee of the Federal Account Allocation Committee recommends the refund of the N228bn loan secured by the Federal Government to finance the 2023 general elections.

The comprehensive report, signed by the sub-committee Chairman, Kabir Mashi, on December 14, 2023, discloses this information.

The report examines the inflow into and payments from the non-oil excess revenue account, covering January 2020 to October 2023. The total amount distributed to the three tiers of government during this period was N1tn. The report reveals that the total inflow into the Non-oil Excess Account for the period was N2.6tn.

Concerns over significant deductions from the Non-Oil Excess Revenue Account were raised during a FAAC Plenary meeting in September 2023, leading to an in-depth investigation by the sub-committee.

The sub-committee finds that the loan for the 2023 general elections constitutes about 26 per cent of the total deductions made between January 2020 and October 2023. Additional deductions, including a refund of gas flared penalty to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, are noted.

The sub-committee recommends refunding the total deductions of N864.16bn for other purposes back to the account.

The Independent National Electoral Commission proposes a budget of N305bn for the conduct of the 2023 general election, with an additional budget of N50bn for its annual budget, marking a N10bn increment compared to the 2022 budget.

Nigeria's debt profile raises concerns, with data from the Debt Management Office indicating that the Federal Government borrowed N7.04tn locally in 2023. The debt-GDP ratio stands at 23.27 per cent, still below the threshold of 77 per cent, which could potentially harm economic growth.

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