Following the removal of the fuel subsidy, the statutory revenue allocations from the Federation Account shared among the three tiers of government in 2023 increased to N10.14 trillion.
According to the latest report of the Nigeria Extractive Industries Transparency Initiative on the revenue allocations from the Federation Account in 2023, as released on Tuesday, the amount of money shared by the federal, state, and local governments increased by N1.93tn last year, compared to 2022.
The removal of petrol subsidy on May 29, 2023, by President Tinubu was attributed by NEITI as the cause of the increase.
The Nigerian National Petroleum Company Limited swiftly implemented Tinubu’s declaration the next day, causing a sharp increase in petrol price from N198/litre to around N500/litre.
Within a month, the price of the commodity had increased to N617/litre at NNPCL-operated filling stations, while other marketers still sold it for prices between N660 and N700/litre depending on the purchase location.
At the NEITI House in Abuja, NEITI’s Executive Secretary, Dr Ogbonnaya Orji, commented on the latest report and announced its release. He mentioned that the agency conducted the NEITI FAAC Quarterly Review to enhance public understanding of Federation Account allocations and disbursements as disclosed by the government.
He emphasized that the main aim of this disclosure is to enhance knowledge, awareness, and promote public accountability of all institutions in public finance management.
In the breakdown of revenue receipts, it was shown that the Federal Government received N3.99tn, which accounted for 39.37% of the total allocation.
N3.585tn was allocated to the 36 states, accounting for 35.34%, and N2.56tn was shared among the 774 Local Government councils, representing 25.28 %. Further examination of the N10.143tn disbursements in 2023 indicated a N1.934tn increase, equivalent to 23.56%, compared to the previous year's N8.209tn disbursement in 2022.
The increase was attributed in the review to improved revenue remittances to the Federation Account resulting from the removal of petrol subsidy and the floating of the exchange rate by the new administration.
