FAAC Distributes N1.97 Trillion to Federal, State, and Local Governments
The Federation Account Allocation Committee (FAAC) has released a total of N1.97 trillion to the Federal Government, states, and local government councils in the latest revenue-sharing exercise. This marks one of the largest allocations recorded in recent months, reflecting a slight increase compared to previous months.
According to official figures released by the National Bureau of Statistics (NBS), the Federal Government received N778.6 billion, while state governments shared N539.7 billion. Local government councils collectively received N394.6 billion, with the remaining amount covering statutory transfers to various agencies, including the National Judicial Council, the National Assembly, and other constitutionally mandated recipients.
FAAC’s monthly disbursements are derived from revenues collected from oil sales, value-added tax (VAT), customs duties, and other federally collected funds. The committee’s allocations are guided by the principles outlined in the Nigerian Constitution and the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) formula.
Analysts have noted that the increase in the allocation is partly due to improved crude oil prices on the international market and rising VAT collections in major economic states. However, some experts caution that rising recurrent expenditures by the federal and state governments could offset the benefits of higher FAAC disbursements.
The Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission, Dr. Mohammed Bello, commended FAAC for ensuring timely disbursement of funds to all tiers of government. He reiterated the need for transparency and prudent management of the allocations to avoid fiscal stress at both state and local levels.
State governments are expected to use their allocations to fund ongoing capital projects, pay salaries, and settle pending debts, while local governments will primarily rely on their share to support community development and public service delivery.
FAAC’s monthly allocation exercises remain a key determinant of Nigeria’s fiscal stability, as they directly impact the operations of government at all levels. Observers say timely and judicious use of the funds will be crucial to sustaining economic growth and improving service delivery across the country.
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