The House of Representatives has come under fire for stepping down a motion seeking to investigate the unaccounted sum of N15 trillion held by the Federation Accounts Allocation Committee (FAAC).
Former Secretary-General of the Arewa Consultative Forum, Mr. Anthony Sani, condemned the lawmakers’ decision, questioning why such a significant amount remains undistributed amid economic hardship.
“Given the need for money by the three tiers of government for socio-economic development amid untold hardship, one would be surprised to hear that as much as N15 trillion is being held by FAAC. What is it being held for?” Sani asked. “The economic implication is more hardship and restlessness on the part of the citizens—which is also not good for the government.”
The motion, sponsored by Mansur Soro, who represents Darazo/Ganjuwa Federal Constituency in Bauchi State, was set to address alleged constitutional violations in the disbursement of FAAC revenues to states and local governments.
Citing Section 162(3) of the 1999 Constitution (as amended), Soro stated, “Any amount standing to the credit of the Federation Account shall be distributed among the Federal and State Governments and the Local Government Councils in each State on such terms as may be prescribed by the National Assembly.”
However, he alleged that FAAC had implemented a revenue savings policy outside any legal framework, withholding N15 trillion from the distributable pool account over the past 20 months.
“The Federation Account Allocation Committee has hinged its decision on the need to minimize the impact of increased revenues on the money supply and inflation caused by the unification of exchange rates and fuel subsidy removal,” Soro explained.
He added, “The new savings policy is not backed by any legal framework on how the saved funds, accruing interest, and investment will be managed or distributed to the three tiers of government.”
Despite these concerns, the House of Representatives opted to step down the motion, a move that has drawn criticism from civil society groups and legal experts.
Human rights lawyer Abdul Mahmud described the decision as “unfortunate,” warning that it raises serious concerns about transparency and fiscal accountability.
“FAAC, being the statutory body responsible for revenue allocation among the federal, state, and local governments, lacks the legal authority to withhold funds without a clear framework. This situation undermines the principles of revenue sharing as enshrined in the Constitution and deprives subnational governments of much-needed resources for development, salaries, and infrastructure projects,” Mahmud stated.
He further argued that the failure to account for such a substantial sum erodes public trust in governance and opens the door to financial mismanagement and corruption.
Good governance advocate and Women Arise founder, Joe Okei-Odumakin, also criticized the lawmakers, emphasizing the magnitude of the withheld funds.
“N15 trillion is a staggering amount—equivalent to Nigeria’s national budget over a decade ago. There is a need for strong opposition in the National Assembly to hold the executive accountable and curb such excesses,” she said.
In an interview with The PUNCH, Soro insisted that statutory allocations for federal, state, and local governments were being withheld in violation of constitutional provisions.
“In the interest of transparency and justice, the Federal Government, through the Ministry of Finance and FAAC, ought to have fully distributed all revenues accruing to the distributable pool account before saving a portion in designated accounts for benefiting states and local government councils,” he asserted.
He further suggested that the actual withheld amount could exceed N20 trillion, stating, “The N15 trillion estimate is a conservative figure. The savings policy was introduced in June 2024 with an initial savings of N790 billion. The total amount may be more than N20 trillion.”
The decision to shelve the probe continues to stir debate, with growing calls for lawmakers to revisit the motion and demand accountability for the withheld funds.
