Are We Heading For Bankruptcy: Federation Account Hits Its Lowest Balances at N299bn

The federation account, has hit one of its lowest balances in the history of the country. Kemi Adeosun, minister of finance, disclosed this on Thursday after the national economic council
meeting in Abuja.

As a result, deductions will not be made before April allocations are shared by the Federation Account Allocation Committee (FAAC).

Usually, debts incurred by various tiers of government are deducted as first-line charges and remitted to the creditors before the sharing of allocations.

Osun state recently got only N10 million as monthly allocations after the deduction of its obligations to banks and other agencies.

But Adeosun said the deductions will be deferred for April “in order to stimulate as well as revamp the economy”.
Many states are currently unable to pay salaries as a result of huge liabilities.