In a significant financial boost, the federal government (FG), 36 states, and 774 local governments (LGs) in Nigeria shared N10.13 trillion as statutory allocation from the Federal Account Allocation Committee (FAAC) in the first five months (January to May) of 2024.
This marks a remarkable 179 percent year-on-year increase compared to the N3.63 trillion shared in the same period of 2023.
Data from the National Bureau of Statistics (NBS) FAAC report reveals that the FG received N1.88 trillion, reflecting a 37.2 percent increase from N1.37 trillion received in five months in 2023. The 36 states collectively received N2.05 trillion, a 72 percent rise from N1.19 trillion in the previous year. Meanwhile, the 774 local governments were allocated N1.41 trillion, a 43 percent increase from N987.66 billion in five months 2023.
Further analysis indicates a significant rise in allocations from value added tax (VAT), which surged by 228.8 percent year-on-year to N2.42 trillion in five months in 2024 from N736.06 billion in 5M’23. The 13 percent derivation fund received by oil-producing states also saw a substantial increase, rising by 234 percent to N519.83 billion in 5M’24 from N155.5 billion in five months 2023.
Month-on-month analysis shows a fluctuating trend in allocations received by the three tiers of government from FAAC. Allocations in January stood at N1.67 trillion. In February, allocations increased by 24 percent to N2.07 trillion and further rose by 12.5 percent to N2.33 trillion in March. However, the trend reversed in April, with allocations falling by 19.7 percent to N1.87 trillion, before resuming an upward trend in May with a 17 percent increase to N2.19 trillion.
