The House of Representatives has directed its relevant Committees to investigate the spending and utilization of the increased allocation from the Federal Account Allocation Committee (FAAC) by states.
This decision came after the adoption of a motion brought under matters of urgent public importance by Ademorin Kuye, the member representing Shomolu Federal Constituency, Lagos State, during a plenary session on Tuesday.
In his presentation, Kuye highlighted that the amount shared among the three tiers of government from FAAC has significantly increased due to the withdrawal of fuel subsidy, the floating of the naira, and other economic policies introduced by the President Bola Tinubu-led administration.
He noted that in 2023, states and local governments received a total of N6.57 trillion, double the N3.16 trillion they collected in 2022.
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Expressing concern, Kuye noted that despite the increase in cash flow to the states, an additional 14.2 million citizens continue to suffer in poverty.
Many states facing increased allocations are grappling with challenges such as delayed salary payments, ineffective management of public institutions, and soaring unemployment rates, which have exceeded 51 percent in some areas.
Kuye emphasized that state governors have failed to complement the poverty alleviation efforts of the Federal Government and are not driving the necessary economic transformation to alleviate citizen suffering despite the increased allocation at their disposal.
Consequently, the House mandated its Committees on Special Duties, National Planning and Economic Development, and Inter-Governmental Affairs to investigate state spending and utilization of the increased FAAC allocation.
They are required to report back to the House within four weeks for further legislative action.
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