The Federal Government has announced plans to introduce a monthly revenue transparency dashboard aimed at enhancing accountability in income and expenditure across the three tiers of government.
The Minister of State for Finance, Doris Uzoka-Anite, disclosed this at the weekend while addressing members of the Federation Account Allocation Committee (FAAC) in Abuja.
She explained that the initiative became necessary in view of the anticipated increase in funds accruing to the federal, state, and local governments, following recent structural reforms, including a Presidential Executive Order designed to safeguard oil and gas revenues and reduce leakages, as well as the expected boost in collections from the newly implemented Tax Act.
According to the minister, the new transparency dashboard will provide clear reporting of production-to-remittance reconciliation and track incremental inflows from tax reforms and Executive Order-driven revenues.
Uzoka-Anite urged states and federal Ministries, Departments, and Agencies (MDAs) to prioritise productive capital deployment in light of the improved revenue outlook. She advised governments to focus on capital expenditure rather than expanding recurrent spending, invest in infrastructure, agriculture, energy, and other productive sectors, and avoid unsustainable wage increases or consumption-driven spending.
She further charged the various tiers of government to utilize the improved revenues to reduce debt burdens, responsibly clear outstanding arrears, and channel investments into growth-enhancing sectors of the economy.
The minister also proposed that excess liquidity arising from large one-off payments linked to the Executive Order on oil revenues be channelled into a Stabilisation Fund and released strategically to support macroeconomic stability.
Addressing state commissioners of finance at the FAAC meeting, Uzoka-Anite described the current period as pivotal in the fiscal management of the federation, noting that the revenue outlook is changing due to structural reforms introduced by the Federal Government.
She said the new tax reform measures are broadening the tax base, improving compliance, and enhancing administrative efficiency, while the Presidential Executive Order to safeguard federation oil and gas revenues is reinforcing discipline in the sector and reducing leakages.
“These reforms are expected to boost FAAC distributable income in a sustained manner. This is welcome news,” she said.
However, she cautioned that improved revenue performance must be matched with stronger fiscal coordination, stressing that FAAC’s responsibility goes beyond revenue distribution to ensuring that allocations support macroeconomic stability and long-term growth.
Uzoka-Anite warned that sharp and immediate distribution of significantly higher revenues could trigger inflationary pressures, complicate monetary management, and erode the real value of allocations through rising prices.
“In simple terms, when too much liquidity enters the system at once, prices can rise in a way that erodes the value of the very allocations we are distributing,” she said.
She therefore proposed safeguards including phased disbursement of one-off recoveries, staggered FAAC distributions instead of bulk injection, and the temporary warehousing of part of the inflows in a stabilisation buffer to smooth liquidity impact.
According to her, FAAC may also consider channeling part of incremental inflows into a fiscal stabilisation window to offset revenue shortfalls in weaker months, reduce procyclicality in spending, and build resilience across the federation.
The proposed reforms, she noted, are aimed at ensuring that rising revenues translate into sustainable economic growth rather than macroeconomic instability.
