The Nigeria Extractive Industries Transparency Initiative (NEITI) reported 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 marks an increase of N46.77 billion (1.42%) compared to the first quarter of the year.
In its latest Quarterly Report on Federation Account Revenue Allocations for Q2 2024, NEITI revealed that the Federal Government received N1.102 trillion, which represents 33.35% of the total allocation.
Meanwhile, 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 share of mineral revenue under the 13% oil derivation formula.
NEITI’s report showed some fluctuations in the quarterly allocations compared to the previous period. The Federal Government’s allocation decreased by N41.44 billion (3.76%), while state governments’ allocations increased by N58.13 billion (4.29%). Local government councils also saw a rise in their disbursement by N30.82 billion (3.57%).
The report highlighted that overall revenue allocations exhibited an upward trend in the latter months of 2023 and into early 2024. Disbursements peaked at N1.098 trillion in February 2024 before declining slightly to N1.065 trillion in March.
On a state-by-state basis, Delta State received the highest allocation in Q2 2024, totaling N137.357 billion, including its oil derivation share. Lagos State followed with N123.282 billion, and Rivers State was third with N108.104 billion. Nasarawa, Ebonyi, and Ekiti States received the least allocations, with N24.735 billion and N25.404 billion, respectively.
Among local governments, Lagos State’s Alimosho LGA topped the list with an allocation of N5.721 billion, followed by Ajeromi/Ifelodun (N4.592 billion) and Kosofe (N4.541 billion). Ifedayo LGA received the smallest share at N661.82 million.
The report also indicated that the nine oil-producing states benefited from the 13% oil derivation revenue, with Delta State receiving the largest share at 40.153%, followed by Bayelsa (38.112%) and Akwa Ibom (36.117%). Rivers State received 27.272%, while other oil-producing states recorded lower ratios.
Notably, solid minerals-producing states did not receive derivation revenue in Q2 2024 due to insufficient revenue generation from the sector.
Bauchi State recorded the highest debt deductions at N6.49 billion, followed by Ogun State. In contrast, Anambra State had the least deductions at N115.6 million, while Lagos and Nasarawa recorded no debt deductions for the quarter.
Commenting on the findings, NEITI Executive Secretary Dr. Orji Ogbonnaya Orji emphasized, “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. The ultimate goal of this disclosure is to enhance knowledge, increase awareness, and promote public accountability in the management of public finances.”
Dr. Orji urged citizens and civil society organizations to actively engage in budget tracking and the monitoring of allocations to enhance public accountability.
The report identified the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Federal Inland Revenue Service (FIRS), and Nigeria Customs Service (NCS) as the key revenue-generating agencies, contributing through oil and gas royalties, petroleum profit tax, company income tax, value-added tax (VAT), and import & excise duties.