The Federation Account Allocation Committee has shared a total of N1.123tn with the federal, state, and local governments for March 2024.
The allocation, which comes from a total of N1.867tn, is a significant distribution of funds to support different government levels.
The Ministry of Finance's Director of Information and Public Relations, Mohammed Manga, announced this in a statement on Friday.
FAAC is responsible for examining and approving the distribution of financial resources to the states and the Federal Government.
Each month, this committee is responsible for distributing funds to Nigeria’s 36 states and its 774 local government areas.
This allocation is expected to drive progress and support government bodies at various levels in carrying out their duties.
The PUNCH reported that the FAAC shared N1.152.trn to the three tiers of government for February 2024 from a gross total of N2.326.14trn
Manga stated that the Accountant General of the Federation, Mrs. Oluwatoyin Madein, chaired the meeting and highlighted the importance of the allocation.
“This distribution is crucial to ensure that all government levels have the necessary funds to continue their development projects and provide essential services to the citizens,” the statement read.
The statement noted that the Federal Government received N345.890bn, states, and local governments received N398.689bn and N288.688bn, respectively, while oil-producing states received N90.224bn as 13 per cent mineral revenue derivation.
The FAAC statement also noted an increase in the gross revenue from Value Added Tax for March 2024, amounting to N549.698bn—an N89.210bn rise from the previous month.
This increase reflects the country’s economic growth and improved tax compliance.
Despite the positive trend in VAT, the Gross Statutory Revenue of N1.017tn for March was lower than February’s N1.192tn by N175.212bn.
The decrease has been attributed to reductions in excise duty, oil royalty, petroleum profit tax, customs external tariff levies, and electronic money transfer levy.
The balance in the Excess Crude Account as of April 2024 stands at $473,754.57, indicating a reserve for future financial stability.
The statement noted that the FAAC’s decision to allocate these funds is expected to bolster economic activities across the nation and support the government’s efforts in improving infrastructure, healthcare, education, and other vital sectors.
