Financial & Public Policy Analyst 📊 | Decoding the Nigerian Economy one thread at a time. | Exploring the intersection of Fiscal Policy & National Development.
Jan 26 • 7 tweets • 2 min read
My mate asked: "If FAAC shares Nigeria’s revenue between the 3 tiers of government, where do the President, Governors, and Judges get their paychecks?"
Most people think it’s one simple pot. It’s actually a sophisticated Two-Wave System mandated by the 1999 Constitution. 🧵👇🏾
Yes, FAAC shares what's in the Federation Account but have you met the RMAFC?.
Per Section 84 & 124 of the 1999 Constitution as amended, only RMAFC determines the remuneration for political, public, and judicial officers. I mean, they set the "Price Tag" for leadership.
Jan 25 • 11 tweets • 2 min read
How much does Nigeria actually earn, and where does the money go?. Yesterday we talked about Economic Policy. Today, let’s look at the bigger picture i .e Revenue Generation and Allocation. To understand where we are going, we have to look at the "Debt Trap" we just escaped. 🧵👇🏾
Nigeria’s income comes from two main buckets.
Oil Revenue: Crude oil sales, gas royalties, and petroleum profit tax.
Non-Oil Revenue like VAT, Company Income Tax ( Federal Government doesn't collect PIT), Customs duties, and the new Development Levy (4% for mid/large firms).
