The Federation Account Allocation Committee (FAAC) disbursed N15.26 trillion to federal, state, and local governments in 2024, marking a 43% increase from the previous year.
According to a report by the Nigeria Extractive Industries Transparency Initiative (NEITI), the surge in revenue is attributed to fiscal reforms implemented by the Federal Government, including the removal of fuel subsidies and exchange rate adjustments, which boosted oil revenue remittances.
The breakdown of the allocations shows that the federal government received N4.95 trillion, while state governments got N5.81 trillion, and local governments received N3.77 trillion.
State governments saw the highest percentage increase, with allocations rising 62% from N3.58 trillion in 2023 to N5.81 trillion in 2024.
Lagos, Delta, and Rivers states topped the list of allocations, receiving N531.1 billion, N450.4 billion, and N349.9 billion, respectively.
On the other hand, Nasarawa, Ebonyi, and Ekiti states received the lowest allocations, with N108.3 billion, N110 billion, and N111.9 billion, respectively.
The report also raised concerns over high debt deductions, with states’ foreign debts and contractual obligations leading to N800 billion in deductions, accounting for 12.3% of total allocations.
NEITI Executive Secretary, Dr. Orji Ogbonnaya Orji, emphasized the need to assess federal and state borrowing sustainability, especially for oil-producing states receiving 13% derivation revenue from crude oil, gas, and solid minerals.
