The Federal Accounts Allocation Committee (FAAC) announced today that it disbursed a staggering N1.2 trillion in August to the Federal Government, states, and local government councils (LGs) across Nigeria. This significant allocation marks a substantial increase from previous months, signaling a positive trend in the country’s revenue generation.
The FAAC, a body responsible for distributing revenue generated from the federation account among the three tiers of government, revealed that the N1.2 trillion was derived from various sources, including statutory revenue, value-added tax (VAT), electronic money transfer levy (EMTL), and exchange difference revenue.
Breakdown of the Allocation
- Federal Government: N374.925 billion
- State Governments: N422.861 billion
- Local Government Councils: N306.533 billion
- Derivation Revenue: N99.474 billion
The significant increase in revenue shared by the FAAC in August can be attributed to several factors, including improved economic performance, enhanced tax collection, rising oil prices, and increased non-oil revenue.
The N1.2 trillion allocation presents significant opportunities for Nigeria, including infrastructure development, education, healthcare, security, and poverty reduction.
While the increased revenue is a positive development, challenges such as corruption, inefficiency, and sustainability must be addressed to ensure effective utilization of the funds.
