The Nigeria Extractive Industries Transparency Initiative has revealed that the three levels of government—federal, state, and local—divided a total of N4.37 trillion in statutory revenue allocations from the Federation Account between January and June 2023.
This was stated in its most recent report on revenue allocations from the Federation Account for the first half of the year.
The NEITI’s Executive Secretary, Ogbonnanya Orji, announced the publication of the report at the organization’s Abuja headquarters and stated that the total distributable FAAC allocations to the three levels of government in the first and second quarters of 2023 were over N2.32 trillion and N2.04 billion, respectively.
According to the NEITI quarterly assessment, inflows into the Federation Account fell by 23% in the second quarter of 2023, which had an impact on the distributable revenue, which dropped by 12% when compared to the total revenue distributed in the first quarter.
Over the course of the six months, each level of government collected more than N1 trillion, according to the agency.
The federal government received around N1.78 trillion, or 40.7%, of the total distributable revenue for the period, followed by state governments with N1.5 trillion, or 34.5%, and local government councils with N1.08 trillion, or 24.8%.
The distributable revenue of N4.366 trillion shared by the three tiers of government between January and June 2023 was higher by about 16.7% compared to about N4.05 trillion shared during the same period in 2022, according to a comparative analysis of the total allocations on an annual basis in the corresponding quarters of 2022 and 2023.
As a result, the study showed that the allocation received by the Federal Government during the review period increased by 19.8% to N1.78 trillion in 2023 from N1.48 trillion during the same period in 2022.
Similar to this, state government appropriations increased by around 11.2% to N1.42 trillion in 2023 from N1.26 trillion in 2022, while local government council allocations increased by 16.8% to N1.08tn in 2023, from N926bn in 2022.
According to the report, the increase in half-yearly distributions for 2023 was consistent with a trend upward from the previous period, during which the distributable revenue for the first half of the year increased by 16.7%, from N3.47 trillion between January and June 2021 to N4.05 trillion in the same period the following year.
Additionally, allocations to the federal, state, and local government councils all saw overall increases of 8.8%, 26.5%, and 14.2%, respectively.
