According to a report presented by the Executive Secretary of the Nigeria Extractive Industries Transparency
Initiative (NEITI), Dr. Ogbonnaya Orji, the Federal Accounts Allocation Committee (FAAC) disbursed a total of N10.14 trillion to the federal government, 36 states, and 774 local government areas (LGAs) in 2023.
The FAAC Quarterly Review aims to enhance public understanding of the allocation and disbursement processes of the Federation Account, fostering accountability in managing public finances.
The report highlights that the federal government received N3.99 trillion, representing 39.37 percent of the total share. Meanwhile, the 36 states received N3.585 trillion (35.34 percent), and the
774 LGAs received N2.56 trillion (25.28 percent).
Dr. Orji emphasised that the N10.143 trillion disbursed in 2023 marked a significant increase of N1.934 trillion or 23.56 percent compared to the N8.209 trillion disbursed in 2022. This surge in allocation underscores the importance of transparent reporting and accountability in Nigeria’s fiscal management system.
He stated, “A further analysis of the N10.143 trillion disbursements in 2023 showed an increase of N1.934 trillion or 23.56 per cent when compared to the disbursement of N8.209 trillion shared in 2022.
“The review attributed the increase to improved revenue remittances to the Federation Account due to the removal of petrol subsidy and the floating of the exchange rate by the new administration.
“The report highlighted that while total revenues distributed from the account recorded an increase of 23.56 per cent in 2023, the increase accruing to each tier of government varied due to the type of the revenue streams contributing to the inflows into the Federation Account.”
…Increase according to states
The administrative head of NEITI disclosed that the 2023 FAAC allocations analysis showed a cumulative increase of N1.934 trillion received by the federal, state, and local governments compared to 2022.
In the first quarter of 2023, there was a rise of N579.71 billion 33.19 percent over the same period in 2022. The subsequent quarters also saw increases of 10.32 percent, 27.49 percent, and 23.42 percent, respectively.
Orji also mentioned that among the states, Delta State received the highest allocation, amounting to N402.26 billion (gross), with Rivers State following closely at N398.53 billion. He noted that these figures include the states’ earnings from oil and gas derivation revenue…
