- The Federation Account Allocation Committee disbursements to the federal, state, and local governments surged by 43 per cent to N15.26 trillion in 2024
- Allocations to states increased by 62 per cent from N3.58 trillion in 2023 to N5.81 trillion in 2024
- Lagos, Delta, and Rivers states received the highest FAAC allocations in 2024, while Nasarawa, Ebonyi, and Ekiti received the least
The Federation Account Allocation Committee (FAAC) disbursements to the federal, state, and local governments increased by 43 per cent in 2024 to reach N15.26 trillion.
This is according to a FAAC Quarterly Review released by the Nigeria Extractive Industries Transparency Initiative (NEITI) on Tuesday, March 18, in Abuja.
It said the Federal Government received a total of N4.95 trillion in 2024, state governments received N5.81 trillion, and local governments got N3.77 trillion.
Speaking on the findings, the Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, noted that the report reflects the impact of major fiscal reforms, including the removal of fuel subsidy in May 2023 and exchange rate policies, which boosted oil revenue remittances and reshaped revenue inflows to all tiers of government.
Orji stressed the need to assess federal and state governments’ borrowing sustainability, especially for oil-producing states that receive 13 per cent derivation revenue from crude oil, gas, and solid minerals.
“The analysis focused on crude oil revenue derivation states, as solid minerals remain underutilised despite their significant potential,” Orji stated.
States’ FAAC allocation increased by 62% in 2024
An analysis of the report showed that among the three tiers of government, allocation to state governments saw the highest percentage increase.
Allocations to states increased by 62 per cent from N3.58 trillion in 2023 to N5.81 trillion in 2024. Local governments’ rose by 47 per cent between 2023 and 2024, while the Federal Government’s share of the allocation rose by 24 per cent, from N3.99 trillion to N4.95 trillion.
The report further stated that total FAAC allocations grew by 66.2 per cent over the past two years. In 2022, the total FAAC allocation was N9.18 trillion. It rose to N10.9 trillion in 2023 and further increased to N15.26 trillion in 2024.
Lagos, Delta, Rivers states received the highest allocations
The report stated that Lagos, Delta, and Rivers states received the highest FAAC allocations in 2024, while Nasarawa, Ebonyi, and Ekiti received the least.
Among the top three states, Lagos received N531.1 billion in FAAC allocation in 2024, Delta received N450.4 billion, and Rivers got N349.9 billion.
FAAC allocations to the three lowest-earning states in 2024 saw Nasarawa receiving N108.3 billion, Ebonyi State receiving N110 billion, and Ekiti got N111.9 billion.
Six states received over N200 billion each
The report added that Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano states each received over N200 billion, accounting for 33 per cent of total state allocations.
In contrast, the six lowest-receiving states, which are Yobe, Gombe, Kwara, Ekiti, Ebonyi, and Nasarawa, received a combined 11.5 per cent of total allocations in 2024.
The report noted that the top four states – Lagos, Delta, Rivers, and Akwa Ibom – received a total of N1.49 trillion, which is more than thrice the total received by the bottom four states (Kwara, Ekiti, Ebonyi, and Nasarawa), which received N442.4 billion in total.
N800 billion was deducted as states’ debt, contractual obligations
The report raised concerns about high debt deductions, saying that N800 billion was deducted to settle states’ foreign debts and contractual obligations, accounting for 12.3 per cent of total allocations.
The top states by debt deductions are Lagos (N164.7 billion debt deductions), Kaduna (N51.2 billion), Rivers (N38.6 billion), and Bauchi (N37.2 billion).
The report highlighted that many states with high debt burdens ranked low in FAAC allocations, which raises concerns about their debt-to-revenue ratios and overall fiscal sustainability.
It added that with revenue growth fuelled by policy changes, state governments must improve fiscal management to reduce high debt burdens and ensure long-term economic stability.
FAAC: FG, states, LGs share N1.703 trillion as January 2025 revenue
Meanwhile, TheRadar earlier reported that the federal government, states, and local government councils shared N1.703 trillion as Federation Account revenue for January 2025.
The amount represented a 19.6 per cent or N279 billion increase from the N1.424 trillion shared from December 2024 revenue.
