The Federal Accounts Allocation Committee (FAAC) disbursed N15.26 trillion to the federal, state, and local governments in 2024, a 40% increase from the N10.9 trillion disbursed in 2023.
As revealed in the latest FAAC Quarterly Review by the Nigeria Extractive Industries Transparency Initiative (NEITI), States claimed the largest share of the fund.
While the federal government’s allocation grew by 24% to N4.95 trillion, local governments saw a 47% increase, reaching N3.77 trillion. However, state governments received a 62% surge to N5.81 trillion, up from N3.58 trillion in 2023.
Lagos received the highest allocation of N531.1 billion, followed by Delta with N450.4 billion and Rivers with N349.9 billion. At the bottom of the list, Nasarawa received just N108.3 billion, followed by Ebonyi (N110 billion) and Ekiti (N111.9 billion).
Speaking on the report, Dr Orji Ogbonnaya Orji, the Executive Secretary of NEITI, stated that the analysis was conducted against the backdrop of major fiscal reforms that shaped the revenue sector with emphasis on the impacts of subsidy removal on national and subnational finance.
He highlighted the need to assess the sustainability of governments borrowing to fund projects, including the implications of natural resources dependence, particularly for states benefitting from 13% derivation revenue from oil, gas, and solid minerals.
Orji urged the government to take adequate measures to mitigate risks such as inflationary pressure, rise in debt servicing and fiscal uncertainties for states dependent on natural resources.
The NEITI FAAC report stressed the need for stakeholders across all levels to utilize the data to hold the government accountable and ensure efficient management of public finances.
