The Federation Accounts Allocation Committee (FAAC) disbursed a record N15.26 trillion to federal, state, and local governments in 2024, marking a 43% allocation increase and in order to mitigate the impact of the federal government’s reform policies on citizens.
The Nigeria Extractive Industries Transparency Initiative (NEITI) made this disclosure in Abuja via the NEITI FAAC Quarterly Review, stating Stating that Nigerians will witness a significant improvement in economic conditions.
As contained in the review, the increase in fiscal allocation will mitigate the impact of fuel subsidies and the Naira volatility on economy hardship. Hence, ensuring a more stable livelihood for citizens. Additionally, the efficiency of the increased allocation was said to boost oil revenue remittances.
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The money allocated reflects an increase in fiscal allocation compared to previous years across the three tiers of government; Federal Government received N4.95 trillion, a 24% increase from N3.99 trillion in 2023, the State Governments received N5.81 trillion, a 62% increase from N3.58 trillion in 2023, and the Local Governments received N3.77 trillion, a 47% increase from the previous year.
Speaking about the significant milestone orchestrated by increased fiscal allocation, the Executive Secretary of NEITI, Orji Ogbonnaya Orji, highlighted that new percentage of allocation is aimed to reshaped the country’s revenue landscape and building the collapsing economy.
Orji further called for sustained policy reform measures to ensure economic stability and long-term growth, highlighting the need to evaluate the sustainability of borrowing by federal and state governments to finance their projects and programs, as well as the impact of reliance on natural resources, particularly for states receiving the 13% derivation revenue from oil, gas, and solid minerals.
