The allocation from the Federal Accounts Allocation Committee (FAAC) to the federal government, 36 states, and 774 Local Government Areas (LGAs) surged by 23.56% to reach N10.14 trillion in 2023, as revealed in a NEITI report presented by its Executive Secretary, Ogbonnaya Orji.
Orji emphasized that the FAAC Quarterly Review aims to enhance public understanding of the allocation and disbursement processes of the Federation Account as documented by the government, with the goal of promoting transparency and accountability in managing public finances.
Providing a breakdown of the revenue distribution, Orji highlighted that the federal government received N3.99 trillion, representing 39.37% of the total share, while the 36 states received N3.585 trillion (35.34%), and the 774 local government areas received N2.56 trillion (25.28%).
He stated, “An in-depth analysis of the N10.143 trillion disbursed in 2023 indicated an increase of N1.934 trillion or 23.56% compared to the N8.209 trillion disbursed in 2022.”
Orji attributed the increase to enhanced revenue remittances to the Federation Account, attributed to the removal of petrol subsidy and the floating of the exchange rate by the new administration. He noted that while total revenues distributed from the account increased by 23.56% in 2023, the increase varied across each tier of government due to the diverse revenue streams contributing to the Federation Account.
Regarding the increase across states, Orji revealed that the 2023 FAAC allocations analysis showed a cumulative increase of N1.934 trillion received by the federal, state, and local governments compared to 2022. Notably, the first quarter of 2023 witnessed a surge of N579.71 billion (33.19%) compared to the same period in 2022, with subsequent quarters also experiencing increases of 10.32%, 27.49%, and 23.42%, respectively.
Orji also highlighted that among the states, Delta State received the highest allocation of N402.26 billion (gross), closely followed by Rivers State at N398.53 billion. These figures include the states’ earnings from oil and gas derivation revenue.
Credit: Nairametrics (Text Excluding Headline)
