NEITI reports a 23% decline in federation account revenue for Q2’23

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NEITI reports a 23% decline in federation account revenue for Q2'23
NEITI reports a 23% decline in federation account revenue for Q2'23

The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed a 23 percent decline in distributable revenues to the Federation Account during the second quarter of 2023 (Q2’23), amounting to N2.04 trillion compared to N2.32 trillion in the first quarter (Q1’23).

NEITI’s review further indicated that the Federal, State, and Local Government Councils collectively shared N4.37 trillion from the Federation Account as statutory revenue allocations in the initial half of the year.

Government tiers share over N1 trillion each in H1’23 as revenue grows by 16.7%

Each tier of government received over N1 trillion during this six-month period. On a year-on-year basis, the report showcased a 16.7 percent increase in distributable revenue for the first half of 2023 (H1’23), with N4.366 trillion shared among the three tiers, compared to approximately N4.05 trillion in the corresponding period in 2022 (H1’22).

Breaking down the revenue distribution for H1’23, the Federal Government received about N1.78 trillion (40.7 percent), State governments received N1.5 trillion (34.5 percent), and the Local Government Councils received N1.08 trillion (24.8 percent) of the total distributable revenue.

The report also highlighted that FAAC distribution in Q2’23 decreased in absolute value, with a total distributable revenue of N2.02 trillion, down 13 percent from the approximately N2.16 trillion distributed in Q2’22.

NEITI’s Executive Secretary, Dr. Orji Ogbonnanya Orji, noted that this half-yearly allocation increase in 2023 continues the upward trend observed in previous years, with distributable revenue rising from N3.47 trillion in H1’21 to N4.05 trillion in H1’22.