In December 2023, nine oil-producing states in Nigeria received a total of N57.915 billion as their 13% share of derivative from mineral revenue. This revelation came from Bawa Mokwa, the Director of Press and Public Relations at the Office of the Accountant General of the Federation, in a communique at the conclusion of the January 2024 FAAC meeting.
The amount allocated in December marked a decrease from the N75.410 billion shared in November 2023, underlining the fluctuations inherent in oil revenue. Notably, Nigeria’s revenue-sharing formula dictates that the nine oil-producing states—Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Imo, Edo, Ondo, and Rivers—receive 13% of oil revenue.
It is important to note that the FAAC, in its disbursement exercise, allocated a total of N1.1 trillion to the federal government, states, and local government councils as December 2023 revenue. This distribution model highlights the critical role of oil revenue in Nigeria’s economic landscape and the intricate dynamics involved in revenue allocation.
This development sheds light on the vital economic contributions of Nigeria’s oil-producing states and underscores the need for transparent and equitable distribution of oil revenue to support their development and growth initiatives.
