NIGERIA – The Nigeria Extractive Industries Transparency Initiative (NEITI) has reported that the Federation Accounts Allocation Committee (FAAC) disbursed an unprecedented N15.26 trillion to federal, state, and local governments in 2024.
According to NEITI’s FAAC Quarterly Review, released on Tuesday in Abuja, this marks a historic high, reflecting a 43% increase compared to previous years. The rise in revenue allocation is attributed to fiscal reforms, particularly the removal of fuel subsidies and adjustments in foreign exchange rates, which have significantly boosted oil revenue remittances.
Breakdown of Allocations:
- Federal Government: N4.95 trillion (24% increase from N3.99 trillion in 2023).
- State Governments: N5.81 trillion (62% rise from N3.58 trillion in 2023).
- Local Governments: N3.77 trillion (47% increase from the previous year).
This total FAAC disbursement represents a 66.2% increase from N9.18 trillion in 2022 and N10.9 trillion in 2023, with the most significant growth occurring between 2023 and 2024.
State-by-State Allocation:
- Top Recipients: Lagos (N531.1 billion), Delta (N450.4 billion), Rivers (N349.9 billion).
- Lowest Recipients: Nasarawa (N108.3 billion), Ebonyi (N110 billion), Ekiti (N111.9 billion).
Six states—Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano—received over N200 billion each, accounting for 33% of total state allocations. Conversely, the six lowest-receiving states—Yobe, Gombe, Kwara, Ekiti, Ebonyi, and Nasarawa—received only 11.5% of the total.
Debt Deductions and Fiscal Challenges:
The report also highlighted that N800 billion (12.3% of total allocations) was deducted for states’ foreign debts and other contractual obligations. Lagos recorded the highest debt deduction at N164.7 billion, followed by Kaduna (N51.2 billion), Rivers (N38.6 billion), and Bauchi (N37.2 billion).
Dr. Orji Ogbonnaya Orji, NEITI’s Executive Secretary, called for innovative fiscal strategies to address economic challenges such as inflation, rising debt servicing costs, and fiscal uncertainties for oil-dependent states. He stressed the importance of sustainable revenue growth, job creation, and economic stability.
The NEITI FAAC Review also underscored the need for accountability in managing public funds and urged continued policy reforms to drive long-term economic growth.
By Damilola Adeleke | March 19, 2025
Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.
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