Nigerian federation shares N1.35trn in June allocation

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The three tiers of Nigerian government, the Federal Government, States, and Local Government Councils (LGAs), shared a total of N1.35 trillion in revenue for the month of June 2024. This information was disclosed on Tuesday by the Director of Information and Public Relations for the Ministry of Finance, Mohammed Manga.

The figure represents a N150 million increase compared to the N1.2 trillion shared in May 2024.

The statement read, “The Federation Account Allocation Committee, at its July 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1,35tn to the three tiers of government as Federation Allocation for m a gross total of N2,48tn.

“From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax, Electronic Money Transfer Levy, Exchange Difference, and an Augmentation of N200 Billion, the Federal Government received N459.776 Billion, the States received N461.979 Billion, the Local Government Councils got N337.019 Billion, while the Oil Producing States received N95.598 Billion as Derivation, (13 per cent of Mineral Revenue).”

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Previous Allocation Dispute:

This announcement comes amidst ongoing tensions regarding the allocation of funds to LGAs. Last week, the Supreme Court ruled in favor of LGAs, ordering the Federal Government to immediately begin direct payment of their allocations to their exclusive accounts.

Unclear Impact of Supreme Court Ruling:

The Ministry of Finance statement did not clarify whether the June allocation figures consider the Supreme Court ruling. This leaves uncertainty regarding the actual amount received by LGAs in June.

Need for Transparency:

Financial transparency is crucial for a healthy federal system. A more detailed breakdown of the allocation figures, including the specific amounts received by each tier of government, would be beneficial for public understanding and accountability.

Further Developments Needed:

It remains to be seen how the Supreme Court ruling will impact future allocations. The Ministry of Finance is expected to provide further clarification on this matter in the coming weeks.

Tags: FAAC, Allocation, Nigeria, FG, LGA, Bola Tinubu, CBN, Olayemi Cardoso, Supreme Court, Ministry of Finance