March 19, (THEWILL) – The Federal Government, States and Local governments, shared a total of N10.143 trillion from the Federation Account, as statutory revenue allocations in 2023, the Nigeria Extractive Industries Transparency Initiative (NEITI), said in its latest report on the Federation Account revenue allocations for the year 2023, released on Tuesday.
Executive Secretary of NEITI, Orji Ogbonnaya Oni, who announced the release of the report at the NEITI House in Abuja, said the agency embarked on the NEITI FAAC Quarterly Review to enhance public understanding of Federation Account allocations and disbursements as published by the government.
“The ultimate objective of this disclosure is to strengthen knowledge, awareness and promote public accountability of all institutions in public finance management”, he said.
A breakdown of the revenue receipts showed that the federal government received N3.99 trillion, representing 39.37% of the total allocation. The 36 states got N3.585 trillion, representing 35.34%, while the 774 local government councils of the Federation shared 2.56 trillion, equivalent to 25.28%.
Further analysis of the N10.143 trillion disbursements in 2023 showed an increase of N1.934 trillion or 23.56% when compared to the disbursement of N8.209 trillion shared in the corresponding year 2022. The Review attributed the increase to improved revenue remittances to the Federation Account due to the removal of 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 23.56% 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, states and local governments, cumulatively received N1.934 trillion more than the amount shared in 2022. The first quarter of 2023 increased by N579.7 billion (33.19%) when compared to the first quarter of 2022.
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