The revenue distributed by the Federation Accounts Allocation Committee (FAAC) to federal, state, and local governments has surged by over 344 percent, reaching approximately N8.5 trillion in the first seven months of 2024. This marks a significant increase from about N1.912 trillion allocated during the same period last year.
This data reflects the revenue distribution from January to July 2024, which was sourced from Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference.
The allocation was divided as follows: 52.68 percent to the federal government, 26.72 percent to states, and 20.60 percent to local governments, based on the revenue-sharing formula.
A detailed breakdown of the FAAC allocations over the past seven months reveals that N1.15 trillion was distributed in January, N1.1527 trillion in February, N1.123 trillion in March, N1.208 trillion in April, N1.143 trillion in May, N1.354 trillion in June, and N1.358 trillion in July, culminating in a total of approximately N8.5 trillion.
In comparison, FAAC allocated N1.51 trillion from January to June 2023, with an additional N966.110 billion in July.
This increase in allocations follows the removal of fuel subsidies in May 2024, which caused petrol prices to soar from N238 per liter to over N600. This change has significantly influenced FAAC’s revenue, which has seen a remarkable rise since June 2023.
Despite the substantial increase in FAAC allocations and revenue for the three tiers of government, many Nigerians continue to express concerns over severe economic hardships.
