Disbursements from the Federation Account Allocation Committee (FAAC) to the Federal Government, states, and local governments skyrocketed by 149.4% year-on-year (YoY) to N13.72 trillion in the first seven months of 2024 (7M ’24), up from N5.5 trillion during the same period in 2023, according to data from the National Bureau of Statistics (NBS).

The Federal Government received N2.68 trillion in 7M ’24, reflecting a 28.2% increase from N2.09 trillion in the corresponding period of 2023. States saw their allocations rise significantly by 62.5% to N2.91 trillion, up from N1.79 trillion in 7M ’23. Local governments received N2.04 trillion, marking a 43% increase from N1.44 trillion last year.

Additionally, revenue from Value Added Tax (VAT) grew by an impressive 228.8%, reaching N3.5 trillion in 7M ’24, compared to N1.28 trillion in 7M ’23. Oil-producing states benefited from a 219.9% YoY rise in the 13% derivation fund, receiving N736.13 billion compared to N230.1 billion in 2023.

The Nigerian government’s increased revenue is also reflected in improved VAT and Company Income Tax (CIT) collections. Finance Minister Wale Edun recently noted that Nigeria’s revenue-to-debt service ratio has declined from 97% in 2023 to 68% in 2024, reducing the country’s debt burden.

Speaking in Abuja, Edun emphasized that the government’s revenue is now being managed with a focus on transparency, accountability, and the visibility of government spending. This marks a significant shift in Nigeria’s fiscal management as the country continues to improve its economic outlook.