FAAC ALLOCATION RISES TO ₦2.26 TRILLION ON IMPROVED TAX COLLECTIONS

Nigeria’s Federation Account Allocation Committee (FAAC) disbursement rose to ₦2.26 trillion, driven by improved tax collections and stronger revenue performance across key government agencies.

Officials said the increase reflects better revenue inflows from oil and non-oil sources, including enhanced tax compliance and improved collection efficiency.

The higher allocation is expected to boost federal, state, and local government finances, providing more fiscal space for development projects and recurrent expenditure obligations.

According to financial authorities, the growth in distributable revenue signals gradual improvement in public finance management, despite ongoing economic pressures.

States are expected to use the additional funds to support infrastructure development, social services, and salary obligations, while also addressing key economic challenges at the subnational level.

Analysts noted that sustained revenue growth will depend on continued reforms in tax administration, diversification of the economy, and improved oil production stability.

The development comes amid broader efforts by the government to strengthen fiscal sustainability and reduce reliance on borrowing.

Stakeholders have called for transparency in the utilization of FAAC allocations to ensure that increased revenue translates into improved living conditions for citizens.