The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that the Federation Accounts Allocation Committee disbursed N3.473 trillion to the three tiers of government in the second quarter of 2024. This represents an increase of N46.77 billion, or 1.42%, compared to the previous quarter.
In the latest Quarterly Report on Federation Account Revenue Allocations, NEITI’s Assistant Director of Communications and Advocacy, Chris Ochonu, detailed the distribution: the Federal Government received N1.102 trillion (33.35%), the 36 states received N1.337 trillion (40.47%), and the 774 Local Government councils shared N864.98 billion (26.18%). Additionally, nine oil-producing states received N169.26 billion as their derivation share.
NEITI Executive Secretary, Dr. Ogbonnaya Orji, emphasized that the report aims to enhance public understanding and accountability in financial management. He noted a decrease in federal allocations by N41.44 billion (3.76%) and increases for state governments and local councils, reflecting broader trends in revenue allocation.
The report highlighted significant contributions from the Nigeria Upstream Petroleum Regulatory Commission, the Federal Inland Revenue Service, and the Nigeria Customs Service, which together generated substantial revenue through various taxes and duties. It also noted an upward trend in disbursements in late 2023 and early 2024, with monthly allocations rising from N1.094 trillion in January to N1.098 trillion in February before a slight dip to N1.065 trillion in March.
State-by-state allocations revealed Delta State received the highest gross allocation of N137.36 billion, while Lagos and Rivers States followed with N123.28 billion and N108.104 billion, respectively. Conversely, Nasarawa, Ebonyi, and Ekiti States received the smallest shares.
Among local governments, Alimosho in Lagos State received the largest allocation of N5.72 billion, with Ajeromi/Ifelodun and Kosofe also receiving significant shares. Delta State led the oil derivation revenue with 40.153%, while other oil-producing states had lower percentages. Solid minerals-producing states did not receive derivation revenue due to insufficient sector performance.
NEITI recommended that states leverage reforms in the solid minerals sector, advised the Central Bank of Nigeria to stabilize the exchange rate, and urged improvements in budget benchmarks and transparency in revenue management.
