FAAC Allocations Rise 149% To N13.7trn In 7 Months
The Federation Account Allocations Committee (FAAC) disbursements to the Federal Government (FG), 36 states and 774 local governments (LG) rose by 149.4 percent year-on-year (YoY) to N13.72 trillion in the first seven months (January to July) of 2024, 7M ’24, from N5.5 trillion in the corresponding period of 2023.
Details of data from the National Bureau of Statistics, NBS, FAAC report for the review period showed that in 7M ’24, FG received N2.68 trillion, up by 28.2 percent YoY from N2.09 trillion received in 7M’23.
States received N2.91 trillion in the review period representing a 62.5 percent increase YoY from N1.79 trillion in 7M’23.
LG received N2.04 trillion in 7M’24, rising by 43 percent from N1.44 trillion in 7M’23.
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.
