The Federation Account Allocation Committee (FAAC) has distributed a total of N1.7 trillion among the federal, state, and local governments as revenue for November 2024. This marks one of the highest disbursements in recent months, driven by increased oil earnings and tax collections.
Revenue Breakdown
The N1.7 trillion allocation was derived from various sources, including:
- Oil Revenue: Higher crude oil prices and improved production levels contributed significantly.
- Value-Added Tax (VAT): A consistent source of revenue, reflecting growth in consumption and compliance.
- Corporate Tax: Increased remittances from businesses further boosted the pool.
- Other Sources: Income from customs duties, royalties, and non-oil revenue streams.
The federal government received N652.8 billion, states N510.4 billion, and local governments N392.6 billion, while the balance was allocated to oil-producing states as derivation funds.

Drivers of the Increase
- Recovery in Oil Production: Nigeria’s crude oil output has seen a steady rise, aided by efforts to curb oil theft and vandalism.
- Improved Tax Compliance: Enhanced tax administration and enforcement measures have bolstered collections.
- Exchange Rate Gains: The floating exchange rate policy has amplified revenue in naira terms.
Implications for Economic Growth
The significant revenue boost is expected to provide much-needed liquidity for states and local governments to execute development projects, pay salaries, and meet other obligations. Additionally, it could help the federal government address fiscal challenges and reduce its reliance on borrowing.
Concerns Over Sustainability
While the increased allocation is a positive development, analysts caution that over-reliance on volatile oil revenue could pose risks to fiscal stability. They advocate for sustained efforts to diversify the economy and enhance non-oil revenue streams, such as agriculture, manufacturing, and technology.
Looking Ahead
The FAAC has emphasized the need for prudent management of the distributed funds to ensure long-term economic impact. Effective utilization will be key to addressing infrastructure gaps, improving public services, and fostering inclusive growth.
Conclusion
The disbursement of N1.7 trillion for November highlights a positive revenue trend that could support various levels of government in meeting their financial obligations. However, maintaining this momentum requires a balanced approach to resource management and economic diversification.
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