The Federation Accounts Allocation Committee (FAAC) reported a dramatic increase in revenue distributed to federal, state, and local governments, rising by over 344% to approximately ₦8.5 trillion from January to July 2024. This marks a significant surge compared to the ₦1.912 trillion shared during the same period in 2023.
FAAC's distributed revenue during this period was sourced from Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference. The allocation followed the revenue-sharing formula of 52.68% for the federal government, 26.72% for states, and 20.60% for local governments.
A detailed breakdown of the revenue allocation for the first seven months of 2024 shows:
- January: ₦1.15 trillion
- February: ₦1.152 trillion
- March: ₦1.123 trillion
- April: ₦1.208 trillion
- May: ₦1.143 trillion
- June: ₦1.354 trillion
- July: ₦1.358 trillion
This brings the total allocation for the period to approximately ₦8.5 trillion. In comparison, FAAC distributed ₦1.51 trillion from January to June 2023 and ₦966.11 billion in July 2023.
The substantial increase in revenue allocation follows the removal of the fuel subsidy in May 2024, which led to a rise in petrol prices from ₦238 per liter to over ₦600. This policy change has significantly impacted FAAC’s revenue, contributing to the astronomical increase observed since June 2023.
Despite this notable rise in revenue distribution, Nigerians continue to face economic hardships, with many expressing concerns about the growing cost of living and the overall impact of the subsidy removal on their daily lives.
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