The Federation Account Allocation Committee (FAAC) has disbursed a significant sum of N1.123tn to the federal, state, and local governments for the month of March 2024. This allocation, derived from a gross total of N1.867tn, plays a crucial role in supporting the various tiers of government in Nigeria.
In a statement signed by Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance, it was revealed that the FAAC is responsible for examining and approving the distribution of financial resources to the states and the Federal Government. On a monthly basis, this committee ensures the disbursement of funds across the 36 states and 774 local government areas of the country.
The allocation of funds is expected to drive progress and provide support to governmental bodies at all levels in carrying out their duties. The recent disbursement follows the FAAC’s distribution of N1.152tn to the three tiers of government for February 2024 from a gross total of N2.326tn.
During the meeting chaired by the Accountant General of the Federation, Mrs. Oluwatoyin Madein, the importance of the allocation was emphasized. The statement highlighted that the Federal Government received N345.890bn, while the states and local governments received N398.689bn and N288.688bn, respectively. Additionally, the oil-producing states received N90.224bn as 13% mineral revenue derivation.
The statement also mentioned an increase in the gross revenue from Value Added Tax (VAT) for March 2024, amounting to N549.698bn. This reflects a significant rise of N89.210bn compared to the previous month, indicating positive economic growth and improved tax compliance.
However, the Gross Statutory Revenue for March, which amounted to N1.017tn, was lower than February’s N1.192tn by N175.212bn. This decrease can be attributed to reductions in excise duty, oil royalty, petroleum profit tax, customs external tariff levies, and electronic money transfer levy.
Despite the decrease in statutory revenue, the Excess Crude Account balance as of April 2024 stands at $473,754.57, serving as a reserve for future financial stability.
The FAAC’s decision to allocate these funds is expected to boost economic activities across the nation and support the government’s efforts in improving infrastructure, healthcare, education, and other vital sectors. This allocation ensures that all government levels have the necessary funds to continue their development projects and provide essential services to the citizens.
