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Federal account allocation rose by 23.9% in February – FAAC

The Federal Accounts Allocation Committee (FAAC) recorded further increase in distributable revenue in February 2024 with the disbursement of N2.07 trillion to the three tiers of government.

The figure represented 23.9 percent rise over the N1.67 trillion distributed in January 2024.

The National Bureau of Statistics (NBS} attributed the increase to subsidy removal and liberalization of the foreign exchange market. 93

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The allocation has been on the rise since second quarter of 2023 after the implementation of the twin policy reform of the President Bola Tinubu administration.

According to the latest NBS report on FAAC, the amount disbursed in February comprised of N1.15 trillion recorded from the Statutory Account, N479.03 billion from Exchange Gain, N16.59 million from Electronic Money Transfer Levy, EMTL and N420.73 billion from Value Added Tax.

“The allocations to the three tiers of government for November 2023 were: Federal Government with a total of N407.27 billion, States with a total of N379.41 billion, and Local Governments with a total of N278.04 billion. The sum of N85.10 billion was shared among the oil-producing states from the 13% derivation fund”.

“The revenue generating agencies comprising Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) received N16.27 billion, N43.35 billion, and N18.68 billion, respectively as cost of revenue collections” the report added.

Further breakdown of revenue allocation to the Federal Government of Nigeria (FGN) revealed that N279.06 billion was disbursed to the FGN consolidated revenue account, N6.57 billion was received as a share of derivation and ecology, N3.29 billion as stabilization fund,  N11.04 billion for the development of natural resources, and N10.37 billion to the Federal Capital Territory (FCT), Abuja.

 

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