FAAC shares N2.428trn among FG, states, LGs
Emma Ujah, Abuja Bureau Chief The Federation Account Allocation Committee (FAAC) has shared N2.428 trillion among the Federal Government, state governments and local government councils as revenue accrued to the…
The Federation Account Allocation Committee (FAAC) is the body that pools revenue collected by agencies such as the Federal Inland Revenue Service, the Nigeria Customs Service and the Nigerian Upstream Petroleum Regulatory Commission — chiefly from oil sales, VAT and company taxes — into a common pot shared monthly among the three tiers of government under a constitutionally defined formula. Its meetings, which bring together finance commissioners and accountant-generals from the federation, are closely watched because the disbursements form the single largest source of funding for salaries, infrastructure and debt service in many states, several of which rely on federal allocations for the bulk of their budgets.
Monthly FAAC figures also serve as a rough barometer of Nigeria's fiscal health, reflecting swings in oil output, crude prices and non-oil tax collection. Both reports agree on the total sum shared and that it covers the Federal Government, the 36 states and 774 local government councils, with Nairametrics specifying the disbursement relates to September. Neither account yet details the breakdown among the three tiers, the components of the revenue (statutory allocation, VAT, exchange-rate gains or other augmentations), or how the latest figure compares with previous months — details typically disclosed in the full FAAC communique.