Nigeria's FAAC Allocates N1.123tn to Federal, State, and Local Governments in March 2024

The Federation Account Allocation Committee (FAAC) has dispersed a substantial sum of N1.123 trillion to Nigeria's federal, state, and local governments for the month of March 2024.

 This allocation, derived from a gross total of N1.867 trillion, signifies a significant distribution of funds aimed at bolstering various tiers of government. 

The announcement was made in a statement issued by Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance, on Friday.

The FAAC, tasked with examining and approving the distribution of financial resources, convenes monthly to allocate funds across Nigeria's 36 states and 774 local government areas.

 This allocation is pivotal in providing support for governmental bodies to carry out their development projects and essential services to citizens.

According to Manga, the meeting was chaired by the Accountant General of the Federation, Mrs. Oluwatoyin Madein, who emphasized the importance of the allocation in sustaining government operations and service delivery.

The breakdown of the allocation reveals that the Federal Government received N345.890 billion, while states and local governments received N398.689 billion and N288.688 billion, respectively. Additionally, oil-producing states received N90.224 billion as part of the 13 percent mineral revenue derivation.

Moreover, there was a notable increase in the gross revenue from Value Added Tax (VAT) for March 2024, amounting to N549.698 billion—an increase of N89.210 billion from the previous month. This increase reflects positive economic growth and improved tax compliance within the country.

However, despite the rise in VAT revenue, the Gross Statutory Revenue for March totaled N1.017 trillion, which is lower than February's figure of N1.192 trillion by N175.212 billion. This decrease has been attributed to reductions in excise duty, oil royalty, petroleum profit tax, customs external tariff levies, and electronic money transfer levy.

Furthermore, the statement highlights that the Excess Crude Account holds a balance of $473,754.57 as of April 2024, serving as a reserve for future financial stability.

In conclusion, the FAAC's decision to allocate these funds is expected to stimulate economic activities nationwide and support the government's initiatives in improving infrastructure, healthcare, education, and other critical sectors.