The Federation Account Allocation Committee (FAAC) has disbursed N1.123trillion to the federal, state, and local governments for March 2024.
The allocation, derived from a gross total of N1.867 trillion, marks a critical distribution of funds aimed at supporting various government tiers.
This was revealed in a statement signed by the Director of Information and Public Relations, Ministry of Finance, Mohammed Manga, on Friday.
FAAC has the duty of examining and approving the distribution of financial resources to the states and the Federal Government.
The committee is tasked with the disbursement of funds across Nigeria’s 36 states and its 774 local government areas monthly. The allocation is anticipated to drive progress and support governmental bodies across various tiers in executing their duties.
FAAC shared N1.152.trillion to the three tiers of government for February 2024 from a gross total of N2.326.14trillion
Manga stated that the Accountant General of the Federation, Dr, Oluwatoyin Madein chaired the meeting and highlighted 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 statement noted that the Federal Government received N345.890 billion, states, and local governments received N398.689 billion and N288.688 billion, respectively, while oil-producing states received N90.224 billion 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 N549.698 billion — an N89.210 billion 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 N1.017 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.
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.
Source: The PUNCH
