The three tiers of government, the federal, state and local governments have shared the total sum of ₦10.1tn from the Federation Account as statutory revenue allocations in 2023.
Contained in the latest report by the Nigeria Extractive Industries Transparency Initiative (NEITI) on the Federation Account revenue allocations for the year 2023, the Executive Secretary of NEITI, Dr Orji Ogbonnaya, who announced the release of the report at the NEITI House in Abuja, said a breakdown of the revenue receipts showed that the Federal Government received about ₦4trn, representing about 39 per cent of the total allocation.
The 36 states got about ₦3.6trn representing 35 per cent while the 774 local government councils of the federation shared ₦2.6trn equivalent to 25 per cent.
Further analysis of the ₦10.143tn disbursements in 2023, showed an increase of about ₦2trn or 23 per cent when compared to the disbursement of ₦8.2trn shared in the corresponding year 2022.
The Review attributed the increase to improved revenue remittances to the federation account due to the removal of the petrol subsidy, and the floating of the exchange rate by the new administration.
The report highlighted that, while total revenues distributed from the federation account recorded an overall increase of 23 per cent in 2023, the increase accruing to each tier of government varied, largely due to the type of revenue streams contributing to the inflows into the federation account.
The NEITI Quarterly Review of 2023 FAAC allocations disclosed that the federal, state and local governments cumulatively received ₦1.9trin more than the amount shared in 2022. The first quarter of 2023 increased by about ₦580bn (33 per cent) when compared to the first quarter of 2022. The second quarter increased by about 10 per cent, third quarter by 27 per cent, and the fourth quarter had an increase of 23 per cent respectively.
The federal government’s share increased by about ₦574bn (17 per cent) from the ₦3.4trn it received in 2022 to about ₦4trn in 2023.
State governments shared ₦3.6trn in 2023 compared to the ₦2.8trn they got in 2022, showing an increase of about 30 per cent.
Similarly, local government councils’ share of federation allocation was about ₦3trn in 2023 compared to ₦2trn in 2023 which amounts to a 26 per cent increase.
