Disbursements from the Federation Account Allocations Committee (FAAC) to the Federal Government, 36 states, and 774 local governments surged by 149.4% year-on-year (YoY) to ₦13.72 trillion in the first seven months of 2024, compared to ₦5.5 trillion during the same period in 2023.
According to data from the National Bureau of Statistics (NBS), the FAAC report for January to July 2024 (7M ’24) revealed that the Federal Government received ₦2.68 trillion, marking a 28.2% increase from ₦2.09 trillion in 7M ’23.
Allocations to the states climbed by 62.5% YoY to ₦2.91 trillion, up from ₦1.79 trillion in the same period of 2023, while local governments saw a 43% rise, receiving ₦2.04 trillion compared to ₦1.44 trillion in 7M ’23.
Revenue from Value Added Tax (VAT) also experienced a significant jump, increasing by 228.8% to ₦3.5 trillion in 7M ’24, from ₦1.28 trillion the previous year. Similarly, the 13% derivation fund allocated to oil-producing states rose by 219.9%, totaling ₦736.13 billion, up from ₦230.1 billion in 7M ’23.
This boost in allocations mirrors the government’s rising revenue, as reflected in the latest VAT and Company Income Tax (CIT) reports from the NBS.
Minister of Finance Wale Edun recently highlighted the positive shift in Nigeria’s fiscal position, noting that the country’s revenue-to-debt service ratio had improved from 97% in 2023 to 68% in 2024. This shift signals a reduction in the government’s debt burden.
Speaking in Abuja, Edun emphasized that Nigeria’s revenue is now being managed with greater transparency, accountability, and oversight, ensuring more efficient government spending.
