A report released by the Nigerian Extractive Transparency Initiative (NEITI) has revealed that the Federal Accounts Allocation Committee (FAAC) disbursed N8.3tn to the three tiers of government in the first and second quarters of 2024.
NEITI unveiled the report on Monday in Abuja.
NEITI also disclosed that the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the Federal Inland Revenue Service (FIRS), and the Nigeria Customs Service (NCS) were the main revenue-generating agencies for the Federation Account.
“Their contributions included oil and gas royalties, petroleum profit tax, company income tax, value-added tax, and import & excise duties,” NEITI said.
A breakdown shows that revenue allocations to the three tiers of government from the Federation Account from January to July 2024 amounted to N8.3tn.
According to NEITI, the federal government received N2.7tn representing 32.8 per cent while the states received the largest share of N3.5tn or 42.6 per cent.
The Local Government Councils’ share of N2.04tn represents 24.7 per cent.
During the period, the oil derivation revenue was N390.2bn which was distributed to beneficiary states and it accounted for 11 per cent of total allocation.
In the second quarter alone, FAAC disbursed N3.473tn to the three tiers of government.
In the second quarter, the federal government received N1.102tn which represents 33.35 per cent of the total allocation while the 36 states received N1.337tn or 40.47 per cent.
The 774 local government councils shared N864.98b or 26.18 per cent while nine oil-producing states received N169.26bn as their derivation share from mineral revenue.
The report noted that federal government allocation fell by N41.44bn (3.76 per cent), while state governments saw an increase of N58.13bn (4.29 per cent) when comparing the second quarter with the first quarter allocation.
Also, local government council allocations rose by N30.82bn or 3.57 per cent.
Reacting to the report, the Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji said, “The Quarterly Review aims to highlight the sources of funds into the Federation Account and the factors affecting the growth or decline in revenues and distributions over time.
“The ultimate goal of this disclosure is to enhance knowledge, increase awareness, and promote public accountability in the management of public finances.”
SOURCE: The Whistler
