January FAAC allocation rose by 23.95% to N2.07 trillion

In February 2024, the Federation Account Allocation Committee (FAAC) disbursed a total of ₦2.07 trillion to the federal, state, and local governments from revenue generated in January 2024. This amount reflects a 23.95% rise compared to the previous month’s allocation. The increase can be attributed to various factors such as enhanced revenue and exchange rate depreciation.

A detailed breakdown reveals that the distribution includes ₦1.15 trillion from the Statutory Account, ₦479.03 billion from Exchange Gain, ₦16.59 million from Electronic Money Transfer Levy (EMTL), and ₦420.73 billion from Value Added Tax. The Federal Government received ₦407.27 billion, State Governments got ₦379.41 billion, and Local Governments were allocated ₦278.04 billion. Additionally, ₦85.10 billion was divided among the oil-producing states from the 13% derivation fund.

The cost of revenue collection for different agencies were as follows; Nigeria Customs Service (NCS) – ₦16.27 billion, Federal Inland Revenue Service (FIRS) – ₦43.35 billion, and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) – ₦18.68 billion. Moreover, a quarter of the fund – N598.5 billion was transferred to the non-oil excess account, which is a positive development. This increment indicates that more resources will be accessible to all levels of government, enabling them to boost economic growth through increased spending on crucial services, human capital, and infrastructure projects with ripple effects on the economy.