Voice Air Media, News Update
No fewer than a total of N1.123 trillion has been disbursed to the federal, state, and local governments for March 2024 by the Federation Account Allocation Committee.
Voice Air Media reports that the distribution of funds, sourced from a total of N1.867tn, is crucial for supporting different levels of government.
This was contained in a statement signed by the Director of Information and Public Relations, Ministry of Finance, Mohammed Manga, on Friday.
FAAC has the duty of examining and approving the distribution of financial resources to the states and the Federal Government.
Every month, this committee has the responsibility of distributing funds among Nigeria’s 36 states and its 774 local government areas.
The expectation is that this allocation will facilitate progress and aid governmental entities at different levels in fulfilling their responsibilities.
Recall that the FAAC shared N1.152.trn to the three tiers of government for February 2024 from a gross total of N2.326.14trn.
Manga mentioned that the meeting was chaired by Mrs. Oluwatoyin Madein, the Accountant General of the Federation, who emphasized the significance of the allocation.
“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.
It noted that the Federal Government received N345.890bn, states, and local governments received N398.689bn and N288.688bn, respectively, while oil-producing states received N90.224bn as 13 per cent mineral revenue derivation.
The FAAC statement also noted an increase in the gross revenue from Value Added Tax for March 2024, amounting to N549.698bn—an N89.210bn 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 N1.017tn for March was lower than February’s N1.192tn by N175.212bn.
The decrease has been attributed to reductions in excise duty, oil royalty, petroleum profit tax, customs external tariff levies, and electronic money transfer levy.
The balance in the Excess Crude Account as of April 2024 stands at $473,754.57, indicating a reserve for future financial stability.
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.