In a bid to foster economic stability, the Federation Account Allocation Committee (FAAC) has allocated N1.424tr to Nigeria’s three tiers of government for December 2024.
While the disbursement promises fiscal relief, a deeper look reveals that not all sectors of the economy are seeing the same benefits.

The N1.424 trillion, drawn from a gross total of N2.310 trillion, was divided among the Federal Government, State Governments, Local Government Councils (LGCs), and Oil Producing States.
The Federal Government received N451.193b, while States garnered N498.498b, and LGCs were allocated N361.754b.
The Oil Producing States also benefited, with N113.477b for Derivation, representing 13% of mineral revenue.

A standout in the disbursement was the N649.561b allocated from Value Added Tax (VAT) collections, reflecting a steady increase from the previous month’s N628.973b.
This growth in VAT revenues signals improving consumer spending, but with a catch.
Despite the VAT increase, there was a notable dip in Gross Statutory Revenue, which fell by N6.988b from the previous month.
This shortfall is a cause for concern, especially given the growing demands for infrastructure and social services.

One of the key areas that saw a significant boost was the Electronic Money Transfer Levy (EMTL), with N31.211b being shared across the tiers of government.
This revenue source, however, highlights the growing reliance on electronic transactions and could signal future policy shifts toward digital finance.

Furthermore, the N402.714 billion allocated from Exchange Difference paints a picture of fluctuating exchange rates, an area that continues to exert pressure on Nigeria’s fiscal landscape.
While the increase in EMTL and VAT collections is promising, the continued decline in traditional revenue streams like Oil and Gas royalties and Corporate Income Tax (CIT) serves as a reminder of the vulnerabilities Nigeria faces in its over-reliance on oil.
Despite these challenges, the FAAC distribution is a critical lifeline for the country’s governance, particularly for the States and Local Government Councils, which rely heavily on federal allocations to fund infrastructure and social programs.
However, as the allocations continue to rise, the question remains: How can Nigeria ensure long-term fiscal sustainability in the face of dwindling oil revenues and global economic uncertainties?

While the N1.424 trillion allocation offers short-term relief, Nigeria’s policymakers must act swiftly to diversify the economy and reduce dependency on oil to ensure a stable future for all three tiers of government.

In a poignant farewell ceremony, the Federal Ministry of Finance celebrated the remarkable contributions of its retirees, emphasizing their pivotal role in shaping Nigeria’s economic policies and development.

Dr. Doris Uzoka-Anite, the Minister of State for Finance, led the tributes, hailing the retirees as torchbearers of fiscal responsibility and economic progress.
“Your expertise and dedication have set the foundation for sustainable growth and inspired the next generation of civil servants,” she said.
The event, attended by ministry officials and stakeholders, highlighted the retirees’ instrumental efforts in advancing Nigeria’s economic stability.
Permanent Secretary Mrs. Lydia Shehu Jafiya lauded their legacy of integrity and excellence, urging them to see retirement as a new chapter of opportunities.

Dr. Uzoka-Anite also conveyed the commendation of Mr. Wale Edun, the Coordinating Minister of the Economy, who praised the retirees for their indelible impact on the nation’s developmental priorities.

As the retirees step into a new phase of life, the Ministry affirmed its commitment to upholding the high standards they established, ensuring their legacy continues to drive Nigeria’s economic aspirations.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has called for groundbreaking reforms and smarter financing strategies during the Islamic Development Bank (IsDB) Governors’ Retreat in Al-Madinah, Saudi Arabia.
His advocacy is coming now that Nigeria is dedicated to reshaping development financing to meet the demands of a changing global economy.
Speaking to key stakeholders at the retreat, Mr. Edun emphasized the need for transformative, high-impact investments in critical sectors such as infrastructure, agriculture, rail, and energy.
The Director of information and public relations Muhammed Manga in a statement quoted Edun to have urged the IsDB to prioritize initiatives with robust returns, ensuring sustainability while fostering economic growth.
The Honourable Minister emphasized the need for the IsDB to rethink its approach to development financing in response to current economic realities.
He called for transformative, high-impact projects in infrastructure, agriculture, rail, and energy, urging the bank to focus on investments with strong returns to ensure sustainable financing.
Edun also highlighted the importance of innovative funding solutions tailored towards national priorities and debt dynamics, stressing the urgent need for a concessional financing strategy that balances development goals with minimal debt accumulation.
The retreat also featured key contributions from Algeria’s Minister of Finance and Chairman of the Board of Governors, H.E. Laaziz Faid, and Saudi Arabia’s Finance Minister, H.E. Mohammed Al-Jadaan, who opened the discussions.
Responding to the bank’s call for input, Edun also stressed the need for robust monitoring systems to evaluate the real impact of the bank’s initiatives. His remarks reflected Nigeria’s commitment to strengthening the IsDB’s role in delivering greater results for its member states.
The retreat served as a forum for governors to provide ideas and feedback on the IsDB’s 10-year strategy (2026–2035), which aims to chart a clear path for addressing pressing development challenges in a rapidly changing global landscape.
As the IsDB embarks on its new 10-year strategy, Edun’s advocacy for innovative financing, bold reforms, and robust monitoring underscores Nigeria’s dedication to driving transformative change and sustainable development in the region. The collaborative efforts of the IsDB and its member states will be crucial in achieving this vision and creating a brighter future for generations to come.