NEITI report given by its Executive Secretary, Dr. Ogbonnaya Orji, has shown that the Federal Accounts Allocation Committee’s (FAAC) allocation to the federal government, 36 states, and 774 LGAs grew by 23.56% to N10.14 trillion in 2023.
The FAAC Quarterly Review, according to the Executive Secretary, attempts to increase public knowledge of the government-documented allocation and payout procedures for the Federation Account.
The aim of this report is to promote public accountability in the management of public finances by augmenting knowledge and awareness.
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He further detailed the revenue distribution, noting that the federal government received N3.99 trillion, which is 39.37% of the total share. The 36 states received N3.585 trillion, making up 35.34%, and the 774 local government areas received N2.56 trillion, or 25.28% of the total allocation.
He stated, “A further analysis of the N10.143 trillion disbursements in 2023 showed an increase of N1.934 trillion or 23.56 per cent when compared to the disbursement of N8.209 trillion shared in 2022.”
“The review attributed the increase to improved revenue remittances to the Federation Account due to the removal of petrol subsidy and the floating of the exchange rate by the new administration.”
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“The report highlighted that while total revenues distributed from the account recorded an increase of 23.56 per cent in 2023, the increase accruing to each tier of government varied due to the type of the revenue streams contributing to the inflows into the Federation Account,”
The administrative head of NEITI disclosed 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.
In the first quarter of 2023, there was a rise of N579.71 billion 33.19% over the same period in 2022. The subsequent quarters also saw increases of 10.32%, 27.49%, and 23.42%, respectively.
Orji also mentioned that among the states, Delta State received the highest allocation, amounting to N402.26 billion (gross), with Rivers State following closely at N398.53 billion. He noted that these figures include the states’ earnings from oil and gas derivation revenue.
