FG, States, LGs share N2.84trn in FAAC

In the first four months of this year (January to April), the Federal Government (FG), 36 States, and 774 Local Governments (LG) in Nigeria split N2.84 trillion as statutory allocation from the Federation Account Allocation Committee, FAAC.

When compared to the N2.63 trillion shared over the same month in 2022 (4m’22), this is an increase of 7.98 percent year over year (YoY).

However, throughout the course of the four months, there was a monthly decline.

According to information from the FAAC’s monthly statement for the time period, January’s allocations totaled N750.2 billion. Allocations decreased by 1.1 percent to N714.6 billion in March after falling by 3.67 percent to N722.6 billion in February.

In keeping with the declining trend, allocations decreased by 8.2 percent in April to N655.9 billion.

FG received N1.07 trillion during the period, an increase YoY of 5.9 percent from N1.01 trillion collected during the same time in 2022.

The LGs received N685.88 billion, an increase of 11.9 percent from N612.5 billion in 2022, and the States received N931.85 billion, a 12 percent increase from N828.8 billion.

Similar to how allocations from VAT increased year over year, they increased by 19.5% to N880.16 billion in 2023 from N736.06 billion in 2022.

However, due to a decrease in crude oil output in March and April 2023, the 13 percent derivation income received by oil-producing states fell YoY by 32% to N132.7 billion in 2023 from N196.07 billion in 2022.

Production of crude oil peaked in January 2023 at 1.25 million barrels, then increased by 4% to 1.3 million barrels before declining by 3% in March to 1.26 million barrels.

In April, when it plummeted by 21.5 percent to 998,602 barrels, the negative trend persisted.

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