FG, States, LGs Share N4.37tn In Six Months – NEITI

FG, States, LGs Share N4.37tn In Six Months – NEITI

The three tiers of government, federal, states and Local Government Areas, shared a total of N4.37tn from the Federation Account as statutory revenue allocations between January and June 2023, the Nigeria Extractive Industries Transparency Initiative said on Thursday.

It disclosed this in its latest report on the Federation Account revenue allocations for the first half of the year.

The Executive Secretary, NEITI, Ogbonnanya Orji, who announced the release of the report at the NEITI House, Abuja, said total distributable FAAC allocations to the three tiers of government in the first and second quarters of 2023 stood at over N2.32tn and N2.04n respectively.

The NEITI quarterly review revealed that inflows into the Federation Account in the second quarter of 2023 declined by 23 per cent and this affected the distributable revenue, which fell by 12 per cent when compared with the total revenue disbursed in the first quarter.

Each tier of government received more than N1tn over the six-month period, the agency stated.

A breakdown of the revenue receipts showed that the Federal Government received about N1.78tn, or 40.7 per cent, while the state governments received N1.5 tn, or 34.5 per cent, and the Local Government Councils, N1.08tn or 24.8 per cent of the total distributable revenue for the period.

NEITI further disclosed that a comparative analysis of the total allocations on a year-on-year basis in the corresponding quarters of 2022 and 2023 showed that the distributable revenue of N4.366tn shared by the three tiers of government between January and June 2023 was higher by about 16.7 per cent from about N4.05tn shared in the corresponding period in 2022.

Consequently, the report revealed that the allocation received by the Federal Government over the period under review increased by 19.8 per cent to N1.78tn in 2023, from the N1.48tn in the corresponding period in 2022.

Similarly, allocations to the state governments grew by about 11.2 per cent to N1.42tn in 2023 from N1.26tn in 2022, while allocations to the Local Government Councils rose by 16.8 per cent to N1.08tn in 2023, from N926bn in 2022.

The report said the increase in half-yearly allocations in 2023 was consistent with an upward trend from the previous period where the distributable revenue for the first half of the year rose by 16.7 per cent, from N3.47tn between January and June 2021 to N4.05tn in the corresponding period in 2022.

Also, allocations to the federal, states and Local Government Councils increased across the board by 8.8 per cent, 26.5 per cent and 14.2 per cent respectively.

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