The National Bureau of Statistics have released figures which indicate an increase of N545bn in the distribution between the federal, state and local Government from the previous N2.79trillion
This is as the statutory allocations from the Federal Account Allocation Committee (FAAC) to the 36 states and 774 local government areas from July to December 2023, increased to N3.34tn post-fuel subsidy era.
Under the current revenue-sharing formula, the Federal Government gets 52.68 per cent of the revenue, states 26.72 per cent and local governments 20.60 per cent.
President Bola Ahmed Tinubu removed Subsidy in his inugural speech on May 29 2023. He claimed, the fuel subsidy has been draining the federal fund. He also added that the subsidy fund will be use to invest the savings in social programmes and infrastructure.
However the policy of removal of subsidy causes hardship to the citizen as it leads ti increase in price of goods.
The bulk of the revenue shared at FAAC meetings by the federal, state, and local governments are earnings from oil exports, taxes, and other statutory allocations.
A monthly breakdown reveals that the sub-national and LGs got the highest allocation of N627.73bn in September, followed by N610.5bn in December, N555.75bn in August, N533bn in November, N514bn in July and N497.97bn in October.
