The Federation Account Allocation Committee (FAAC) has announced the allocation of N1.354371 trillion to the three tiers of government as Federation Allocation for the month of June 2024. This decision was reached during the committee’s meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The total amount allocated by FAAC stems from a gross revenue of N2.483890 trillion generated for the same period. The allocation breakdown includes distributions to the federal, state, and local government levels, following the statutory revenue-sharing formula.
According to reports from the meeting, the federal government received N570.264 billion, while the state governments collectively obtained N423.698 billion. Local government councils across the country were allocated N316.374 billion. Additionally, the oil-producing states received a total of N102.774 billion as 13% derivation revenue.
FAAC meetings, held monthly, serve as crucial forums where revenue generated from oil sales, taxes, and other sources are distributed among the federal, state, and local governments. These allocations are essential for funding various developmental projects, social programs, and operational expenses at each tier of government.
The Minister of Finance, Wale Edun, emphasized the importance of prudent financial management and accountability in ensuring equitable distribution of national resources. He highlighted ongoing efforts to improve revenue generation and streamline expenditure across all levels of government.
The allocation figures underscore Nigeria’s dependence on oil revenue and the need for sustainable economic diversification strategies. Challenges such as fluctuating oil prices and global economic trends continue to influence revenue projections and fiscal planning in the country.
As Nigeria navigates economic reforms and strives for inclusive growth, FAAC’s role in revenue distribution remains pivotal in supporting governmental functions and fostering socio-economic development nationwide.
