UPDATE: FG, others share N2.84trn in FAAC

The Federal Government (FG), 36 states and 774 local governments (LG) in Nigeria shared N2.84 trillion as statutory allocation from the Federation Account Allocation Committee, FAAC, in the first four months of this year (January to April).

This represents a 7.98 percent year-on-year (YoY) increase when compared to N2.63 trillion shared in the corresponding period of 2022 (4m’22).

But there was a monthly downward trend during the four months.

Data from the monthly FAAC communique for the period showed that allocations for January stood at N750.2 billion. In February allocations fell by 3.67 percent to N722.6 billion and down by 1.1 percent to N714.6 billion in March.

The downward trend continued in April where allocations fell by 8.2 percent to N655.9 billion.

During the period FG received N1.07 trillion, up YoY by 5.9 percent from N1.01 trillion received in same period of 2022.

States received N931.85 billion, representing a 12 percent rise from N828.8 billion, while the LGs received N685.88 billion, rising by 11.9 percent from N612.5 billion in 2022.

Similarly, allocations from VAT rose YoY by 19.5 percent to N880.16 billion in 2023 from N736.06 billion in 2022.

However, the 13 percent derivation fund received by oil producing states dropped YoY by 32 percent to N132.7 billion in 2023 from N196.07 billion in 2022, reflecting the decline in crude oil production in March 2023 and April 2023.

In January 2023, crude oil production stood at 1.25 million barrels and rose by four percent to 1.3 million barrels and down by three percent to 1.26 million barrels in March.

The downward trend continued in April where it fell by 21.5 percent to 998,602 barrels.