Federation Account Allocations Committee allocations rise 149% to N13.7trn in 7 months

Disbursements to the Federal Government (FG), 36 states, and 774 local governments (LG) by the Federation Account Allocations Committee (FAAC) increased by 149.4% YoY to N13.72 trillion in the first seven months (January to July) of 2024, or 7M ’24, from N5.5 trillion in the same period of 2023.

For the review period, specifics of data from the National Bureau of Statistics, NBS, and FAAC report revealed that FG collected N2.68 trillion in 7M ’24, up 28.2 percent YoY from N2.09 trillion received in 7M ’23.

States were given N2.91 trillion during the review period, which is a YoY increase of 62.5 percent from N1.79 trillion in 7M’23.

After receiving N1.44 trillion in 7M’23, LG received N2.04 trillion in 7M’24, a 43 percent increase.

Similarly, allocations from Value Added Tax (VAT) rose YoY by 228.8 percent to N3.5 trillion in 7M’24 from N1.28 trillion in 7M’23.

The 13 percent derivation fund received by oil producing States also rose by 219.9 percent YoY to N736.13 billion in 7M’24 from N230.1 billion in 7M’23.

The government has continued to record increased revenue which was reflected in its recent VAT and Company Income Tax (CIT) report recently released by the NBS.

According to the Minister of Finance, Wale Edun, recently, Nigeria’s revenue to debt service ratio has declined from 97 percent in 2023 to 68 percent in 2024, indicating a reduction in the debt burden of the government.

Speaking in Abuja last week, the Minister said the country’s revenue is now being managed in such a way that promotes transparency, accountability and visibility of government spending.