The Federation Account Allocation Committee (FAAC) has disbursed a total of N1.123 trillion to the federal, state, and local governments for the month of March 2024.
This allocation, derived from a gross total of N1.867 trillion, represents a critical distribution of funds aimed at supporting various government tiers, according to a statement signed by Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance, on Friday.
The FAAC, responsible for examining and approving the distribution of financial resources to the states and the Federal Government, disburses funds monthly across Nigeria’s 36 states and its 774 local government areas. This allocation is anticipated to drive progress and support governmental bodies across various tiers in executing their duties.
According to reports from sunnewsonline.com, in February 2024, the FAAC shared N1.152 trillion to the three tiers of government from a gross total of N2.326 trillion.
The meeting, chaired by the Accountant General of the Federation, Mrs. Oluwatoyin Madein, emphasized the importance of the allocation. “This distribution is pivotal in ensuring that all government levels have the necessary funds to continue their development projects and provide essential services to the citizens,” the statement read.
The breakdown of the allocation reveals that the Federal Government received N345.890 billion, while states and local governments received N398.689 billion and N288.688 billion, respectively. Oil-producing states received N90.224 billion as 13 per cent mineral revenue derivation.
Furthermore, the FAAC statement highlighted an increase in the gross revenue from Value Added Tax (VAT) for March 2024, amounting to N549.698 billion—an N89.210 billion rise from the previous month. This increase reflects the country’s economic growth and improved tax compliance.
However, despite the positive trend in VAT, the Gross Statutory Revenue of N1.017 trillion for March was lower than February’s N1.192 trillion by N175.212 billion. The decrease has been attributed to reductions in excise duty, oil royalty, petroleum profit tax, customs external tariff levies, and electronic money transfer levy.