Post by Arise News (@arisenews)

Chairman of the Alliance for Economic Research and Ethics (AERE), Dele Oye, has accused the federal government of retaining about N1.1 trillion from the federation account before the May 2026 FAAC revenue was shared among the three tiers of government. According to Oye, while Nigeria generated N3.4 trillion in gross revenue, only N2.3 trillion (68%) was distributed, with 32% deducted at source through intervention funds and statutory obligations. He warned that the practice weakens states and local governments, deepens fiscal centralisation, and undermines true federalism. Oye also raised concerns over declining VAT receipts, a 51% shortfall in mineral revenues, and inadequate savings, urging reforms to improve transparency, cap pre-distribution deductions, strengthen legislative oversight, and review the revenue-sharing formula.

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