According to to data released by Nigeria Extracting Industry Transparency Initiative, it was reported that Federation Account Revenue Allocation for 2023 which is to be shared between the federal, State and local government increased by N1.93trillion to N10.14trillion. The increase in Federation Account Revenue was as a result of the subsidy removed on petrol by President Bola Ahmed Tinubu on his inauguration.
Tinubu declaration was immediately implemented by the National petroleum Company limited which result to increase in price of petrol from N198 to N500/litre. The price moved again after a month to N617/litre and some sell at N 660 or N700 per litre depending on location.
NEITI’s Executive Secretary, Dr Ogbonnaya Orji, announced the release of the report at the NEITI House, Abuja, said that the agency embarked on the NEITI FAAC Quarterly Review to enhance public understanding of Federation Account allocations and disbursements as published by government.
“The ultimate objective of this disclosure is to strengthen knowledge, awareness and promote public accountability of all institutions in public finance management,” Orji explained.
The Federation Account Revenue is shared in the basis of 39.37% for federal Government, 35.34% for the 36 state and 25.28% for the 744 Local Government. The Federal Government received N3.99trillion , the states received N3.585trillion and Local government received N2.26trillion.
A further analysis of the N10.143tn disbursements in 2023 showed an increase of N1.934tn or 23.56 per cent when compared to the disbursement of N8.209tn shared in the preceding year of 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 per cent in 2023, the increase accruing to each tier of government varied, largely due to the type of the 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 N1.934tn more than the amount shared in 2022.
The first quarter of 2023 increased by N579.71bn (33.19 per cent) when compared to the first quarter of 2022. The second quarter increased 10.32 per cent, third quarter by 27.49 per cent, while the fourth quarter had an increase of 23.42 per cent.
