In October, Nigeria’s Federation Account Allocation Committee (FAAC) raised the total allocation to federal, state and local governments by N90 billion, bringing the disbursement to N2.428 trillion.
The increase reflects a rebound in oil revenue and tax collections, which together boosted the pool of funds available for distribution across the three tiers of government.
FAAC, the body responsible for apportioning revenue from the nation’s consolidated revenue fund, allocates resources based on a formula that considers factors such as population, land mass and revenue generation capacity.
According to the latest figures, the N90 billion rise marks a modest but notable improvement over the previous month’s allocation, underscoring the impact of higher oil earnings and improved tax compliance on the country’s fiscal landscape.
Analysts note that the additional funds could help state and local authorities address budget shortfalls and fund ongoing projects, although the exact spending plans have not yet been disclosed.
<small>Source: Punch Nigeria — read the original story there.</small>