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    Tuesday, July 9, 2024

    FAAC Shares N10.13trn Statutory Allocations to FG, States, Other in Five Months


    The Federal Account Allocation Committee (FAAC) has reported a significant increase of 179% in the allocation of funds to the Federal Government and other relevant stakeholders. The total allocation has risen from N3.63 trillion to N10.13 trillion.

    The Federal Government (FG), 36 states, and 774 local governments (LG) shared N10.13 trillion in statutory allocations from the Federal Account Allocations (FAAC) during the first five months (January to May) of 2024.

    This signifies a substantial 179 percent annual increase compared to the N3.63 trillion distributed during the corresponding period in 2023, specifically May 2023.

    An analysis of data from the National Bureau of Statistics (NBS) and the Federation Account Allocation Committee (FAAC) report for the review period revealed that in the first five months of 2024 (5M’24), the Federal Government (FG) received 1.88 trillion Nigerian Naira (NGN), representing a significant year-over-year (YoY) increase of 37.2% compared to the 1.37 trillion NGN received during the same period in 2023 (5M’23).

    In the first five months of 2024, the 36 states received a total of N2.05 trillion, marking a significant 72% increase compared to the N1.19 trillion received during the same period in 2023.

    The 774 Local Government received a total of N1.41 trillion in the first five months of 2024, representing a significant increase of 43% compared to the N987.66 billion received during the same period In 2023.

    A subsequent analysis revealed a significant year-over-year increase of 228.8 percent in Value Added Tax (VAT) allocations, rising from N736.06 billion in the first five months of 2023 to N2.42 trillion in the first five months of 2024.

    The 13 percent derivation fund disbursed to oil-producing states experienced a significant year-over-year increase of 234 percent, rising from N155.5 billion in the first five months of 2023 to N519.83 billion in the same period of 2024.

    A month-over-month analysis revealed variations in the allocations received by the three levels of government from the Federation Account Allocation Committee (FAAC).

    The total amount of allocations received during the month of January was approximately N1.67 trillion.

    In February, there was a 24% increase in allocations, resulting in a total of N2.07 trillion. This was followed by a further 12.5% increase in March, bringing the total to N2.33 trillion.

    The positive trend experienceed a reversal in April, resulting in a 19.7 percent decrease in allocations, bringing the figure down to N1.87 trillion. However, the positive trajectory resumed in May, with allocations witnessing a 17 percent increase month-over-month, reaching N2.19 trillion.

     

     

     

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