Nigeria’s Federation Accounts Allocation Committee Disburses N3.473tn to Government Tiers in Q2 2024
The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced that the Federation Accounts Allocation Committee (FAAC) disbursed a total of N3.473 trillion to the three tiers of government in the second quarter of 2024. This represents an increase of N46.77 billion (1.42 per cent) compared to the first quarter of 2024.
According to NEITI’s latest Quarterly Report on Federation Account Revenue Allocations for Q2 2024, the Federal Government received N1.102 trillion, representing 33.35 per cent of the total allocation, while 36 states received N1.337 trillion (40.47 per cent) and the 774 local government councils shared N864.98 billion (26.18 per cent).
The report also highlighted an upward trend in revenue allocations in the latter months of 2023 and early 2024, with total monthly disbursements increasing from N1.094 trillion in January 2024 to N1.098 trillion in February, before declining slightly to N1.065 trillion in March.
In terms of state-by-state allocations, Delta received the largest share of allocations in Q2 2024, with a gross allocation of N137.36 billion, including oil derivation, followed by Lagos with N123.28 billion and Rivers with N108.104 billion. Nasarawa, Ebonyi, and Ekiti states received the least, with N24.735 billion and N25.40 billion, respectively.
Among local governments, Alimosho in Lagos received the highest allocation at N5.72 billion, followed by Ajeromi/Ifelodun (N4.59 billion) and Kosofe (N4.54 billion). Ifedayo received the smallest share of N661.82 million.
The report also noted that nine states benefited from 13 per cent oil derivation revenue, with Delta State leading at 40.153 per cent, followed by Bayelsa (38.112 per cent) and Akwa Ibom (36.117 per cent). Rivers State recorded a derivation ratio of 27.272 per cent, while the other oil-producing states had ratios below 20 per cent.
However, solid minerals-producing states did not receive derivation revenue in Q2 2024 due to insufficient revenue generation from the sector.
In a statement, NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji, emphasized that the Quarterly Review aims to highlight the sources of funds into the Federation Account and the factors affecting the growth or decline in revenues and distributions over time. He noted that the ultimate goal of this disclosure is to enhance knowledge, increase awareness, and promote public accountability in the management of public finances.
NEITI also made several recommendations, including urging states to take advantage of ongoing reforms in the solid minerals sector to diversify their revenue sources. The organization also called on the Central Bank of Nigeria to strengthen measures to stabilize the exchange rate and reduce fluctuations in Federation Account remittances, and for states to adopt realistic budget benchmarks for oil production and exports to minimize fiscal shocks from price volatility.
Finally, NEITI urged citizens and civil society organizations, particularly those involved in revenue and expenditure monitoring, to show interest and strengthen their capacity in budget tracking and monitoring of allocations and disbursements to all tiers of government.
