For the first time in history, The Federation Account Allocation Committee (FAAC) will disburse almost N2 trillion to Federal, States and Local Government Areas in the country for the month of July.
In a statement issued by Tope Ajayi, Senior Special Assistant (SSA) to the President on Media and Publicity, said the jumbo pay for the month of July was the savings realised from the removal of subsidy on fuel since May 29, 2023.
Overtnews reports that the money if evenly distributed to the tiers particularly the states and local governments will be adequate to run the administration of their respective jurisdiction efficiently.
The statement reads, “That FAAC will share almost N2trillion in July, the first time in history, as revenue for the three tiers of government, is an immediate and major benefit of fuel subsidy removal.
“This money that would have been fettered away, in a month, via fuel subsidy will now go into the coffers of government to improve living conditions of the people. What this means is that there will now be more money available for real development.
“States and Local Governments will have enough money to pay salaries of workers and pensioners. Government at all levels will become more solvent, be in a stronger financial position to easily pay new minimum wage and fund development in critical sectors especially in education, healthcare and public transportation.
“Going forward, we should begin to focus attention on our states and local governments to demand more accountability and transparency in the use of public fund. The real governance impact should be at the State and local levels.”