NEITI: Nigeria’s federating units shared N10.14tr in 2023

The Federal, state and local governments in Nigeria shared N10.14 trillion in 2023, the Nigerian Extractive Industry Transparency Initiative (NEITI) said yesterday in Abuja.

Of the fund, the Federal Government got N3.99 trillion, representing 39.37 per cent of the total allocation, the 36 states got N3.585 trillion representing 35.34 per cent and the 774 local government councils of the Federation shared 2.56 trillion equivalent to 25.28 per cent.

The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, while announcing the report said the ultimate objective of the disclosure is to strengthen knowledge, awareness and promote public accountability of all institutions in public finance management.

A further analysis of the disbursements showed an increase of N1.934 trillion or 23.56 per cent when compared to the disbursement of N8.209 trillion shared in the corresponding year 2022. The review attributed the increase to improved revenue remittances to the Federation Account due to the removal of petrol subsidy and the floating of the exchange rate by the new administration.

The report highlighted that while total revenues distributed from the Federation Account recorded an overall increase of 23.56 per cent in 2023, the increase accruing to each tier of government varied, largely due to the type of the revenue streams contributing to the inflows into the Federation Account.

The NEITI Quarterly Review of 2023 FAAC allocations disclosed that the federal, states and local governments cumulatively received N1.934 trillion more than the amount shared in 2022. The first quarter of 2023 increased by N579.71 billion when compared to the first quarter of 2022. The second quarter increased 10.32 per cent and the third quarter by 27.49 per cent while the fourth quarter had an increase of 23.42 per cent respectively.

The Federal Government’s share increased by N574.21 billion, translating to 16.79 per cent from the N3.42 trillion it received in 2022 to N3.99 trillion in 2023. The State governments shared N3.59 trillion in 2023 compared to the N2.76 trillion they got in 2022, showing an increase of 29.99 per cent. Similarly, local government councils’ share of federation allocation was N2.57 trillion in 2023 compared to N2.032 trillion in 2023 which amounts to a 26.22 per cent increase.