The Federation Account Allocation Committee (FAAC) says a total of N1.123tn has been alloted to the Federal, States, and Local Governments (LG) for March 2024.
The allocation, derived from a gross total of N1.867tn, aims at supporting various government tiers.
Director of Information and Public Relations, Ministry of Finance, Mohammed Manga, disclosed this in a statement on Friday.
FAAC, which has the duty of examining and approving financial resources, is tasked with the disbursement of funds across Nigeria’s 36 states and its 774 local government areas.
This allocation is anticipated to drive progress and support governmental bodies across various tiers in executing their duties.
Recall that in February, the FAAC shared N1.152 trillion to the three tiers of government for February 2024 from a gross total of N2.326.14 trillion.
Manga explained that the Accountant General of the Federation, Oluwatoyin Madein, chaired the meeting and highlighted the importance of the allocation.
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“This distribution is pivotal in ensuring that all government levels have the necessary funds to continue their development projects and provide essential services to the citizens,” the statement read.
The statement noted that the Federal Government received N345.890 billion, States and LGs received N398.689bn and N288.688 billion, respectively, while oil-producing states received N90.224 billion as 13 per cent mineral revenue derivation.
The FAAC statement also noted an increase in the gross revenue from Value Added Tax (VAT) for March 2024, amounting to N549.698 billion, an N89.210 billion rise from the previous month.
This increase reflects the country’s economic growth and improved tax compliance.
Despite the positive trend in VAT, the Gross Statutory Revenue of N1.017 trillion for March was lower than February’s N1.192 trillion by N175.212 billion.
The decrease is however attributed to reductions in excise duty, oil royalty, petroleum profit tax, customs external tariff levies, and electronic money transfer levy.
The statement noted that the FAAC’s decision to allocate these funds is expected to bolster economic activities across the nation and support the government’s efforts in improving infrastructure, healthcare, education, and other vital sectors.
