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FAAC ALLOCATION
The Federation Account Allocation Committee (FAAC) has distributed a total of N2.001 trillion as July 2025 revenue to the Federal Government, State Governments, and Local Government Councils.
The removal of the fuel subsidy by President Bola Tinubu's administration has significantly increased the revenue shared among the federal, state, and local governments, rising from N760 billion in 2023 to N3.2 trillion in 2024.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun has addressed reports credited to the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso of FAAC disbursement resulting in significant pressures in the FX market.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has dismissed reports suggesting that the committee is proposing a reduction in the federal government’s share of the Federation Account Allocation Committee (FAAC) to 10%.
The federal government is looking to partner with the private sector to create a disaster relief fund in the wake of massive floodings that have rocked major parts of the country, especially the Northern states.
Agusto & Co, a leading credit rating agency, warns that Nigeria's inflation, which recently saw a slight moderation, is at risk of persisting due to several upcoming fiscal measures.
In 2023, the 36 states of the federation shared a total net Value Added Tax (VAT) allocation of N1.489 trillion.
The Federal Accounts Allocation Committee (FAAC) allocation to the federal government, 36states and 774 LGAs increased by 23.56% to N10.14 trillion in 2023 according to a NEITI report presented by its Executive Secretary, Dr. Ogbonnaya Orji.
Federal Government received N30.414 billion, the state governments received N101.381 billion, and the LGCs received N70.967 billion from the N202.762 billion distributable VAT revenue.
Meanwhile, the National Economic Council (NEC) said it will negotiate with the CBN and the Finance Ministry on the matter
State governments have been heavily reliant on FAAC distribution to meet recurrent expenditure, thus making no room for capital spending.
The Federation Account Allocation Committee disbursed the sum of N762.597 billion from the Federation Account to the three tiers of government in June 2019.