FG, the States, and LGAs Split May’s Income of N786 billion.

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The Federation Account Allocation Committee (FAAC) announced that it distributed a total of N786.16 billion among the three tiers of government in May 2023.

This figure marks an increase of N130.23 billion compared to the amount shared in April 2023 and represents the highest distribution this year, ending a continuous decline since January. The meeting was chaired by the new Accountant General of the Federation, Dr Oluwatoyin Madein, and the total amount includes various revenue sources such as statutory revenue, Value Added Tax (VAT), electronic money transfer levies, and mineral revenue.

The breakdown of the distribution shows that the Federal Government received N301.89 billion, states received N265.88 billion, local government councils got N195.54 billion, and oil-producing states received N22.86 billion as derivation revenue.

Marketnews Thoughts: The increase in revenue distribution among the tiers of government is a positive sign, especially after a consistent decline earlier in the year. This can provide a boost to the finances of the government entities involved and potentially contribute to increased developmental activities. The allocation of funds to oil-producing states as derivation revenue is an important aspect, as it allows these regions to benefit directly from their mineral resources. It will be interesting to see if this positive trend in revenue distribution continues in the coming months and if it has any significant impact on the overall economic situation.


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