FG to introduce monthly revenue transparency dashboards

…Excess liquidity to be kept in Stabilisation Fund

The federal government is to introduce a monthly revenue transparency dashboards in its move to ensure transparency of income and expenditure across the three tiers of government.

The Minister of State for Finance, Dr. Doris Uzoka-Anite, disclosed this while addressing the Federation Account Allocation Committee (FAAC) in Abuja, at the weekend.

She said that the measure was necessary in view of the huge funds that would be available to the three levels of government occasioned by the recent Executive Order, freeing more oil revenues, as well as, the large tax revenues expected from the implementation of the new Tax Act.

With improved finances, Dr. Uzoka-Anite urged productive capital deployment, adding, states and federal MDAs are encouraged to: prioritize capital expenditure over recurrent expansion; Invest in infrastructure, agriculture, energy, and productive sectors; and avoid unsustainable wage or consumption spikes.

She added that a production-to-remittance reconciliation reporting and a clear reporting of incremental Tax Reforms and EO-driven inflows would be introduced equally.

Dr. Uzoka-Anite charged the various tiers of government to use the opportunity of the improved revenue to reduce debt burdens, clear arrears responsibly and invest in growth-enhancing sectors.

She also said that excess liquidity that may arise from huge one-off payments occasioned by the recent Executive Order on oil revenue could be kept in a Stabilisation Fund and released in such a way to support macroeconomic stability.

The Minister of the Chairman of the FAAC told State Commissioners of Finance, “We convene today at a pivotal moment in the fiscal management of our Federation. The revenue outlook is changing. Structural reforms recently introduced by the Federal Government are expected to materially strengthen Federation revenues.

“The newly implemented tax reform measures are broadening the tax base, improving compliance, and enhancing administrative efficiency.

“At the same time, the Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity 2026 is reinforcing revenue discipline in the oil and gas sector and reducing leakages.

“These reforms are expected to boost FAAC distributable income in a sustained manner.

This is welcome news.

“However, improved revenue performance requires improved fiscal coordination. As Chairman of FAAC, I must emphasize that our responsibility extends beyond distribution. It includes ensuring that distribution supports macroeconomic stability and long term economic growth.

“Experience shows that when revenues rise sharply and are distributed fully and immediately, large liquidity injections can increase inflationary pressures, complicate monetary management, and reduce the real purchasing power of allocations.

“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.

“It is therefore prudent that we adopt a structured mechanism to manage higher inflows responsibly.

“An increase in distributable income must be managed responsibly.

Sudden liquidity injections across all tiers of government — if not carefully handled — can generate excess aggregate demand, exchange rate pressure, asset price distortions and inflationary risks.

“Our task is not only to distribute revenue. It is to safeguard macroeconomic stability.

“I propose the following safeguards: phased Disbursement of One-Off Recoveries; where retrospective recoveries arise; we should consider staggered FAAC distribution rather than a single bulk injection; a portion may be temporarily warehoused in a stabilization buffer.

This will smooth liquidity impact.

“FAAC may agree to channel part of incremental inflows into a fiscal stabilization window; use such buffers to offset revenue shortfalls in weaker months; reduce procyclicality in spending and build resilience.”