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, reflecting a 1.42 percent increase compared to the previous quarter.
This information was revealed by the Nigeria Extractive Industries Transparency Initiative (NEITI) in its latest Quarterly Report on Federation Account Revenue Allocations for Q2 2024.
Mr. Chris Ochonu, NEITI’s Assistant Director of Communications and Advocacy, shared the details in a statement on Monday, underscoring the agency’s commitment to promoting transparency and accountability in the management of public resources.
The report shows that the federal government received N1.102 trillion, representing 33.35 percent of the total allocations, while state governments received N1.337 trillion (40.47 percent), and local governments got N864.98 billion (26.18 percent). Oil-producing states also benefitted, receiving N169.26 billion in mineral revenue.
However, while allocations to state and local governments increased by 4.29 and 3.57 percent respectively, the federal government’s allocation dropped by 3.76 percent compared to Q1 2024.
The report further noted the significant contributions of revenue-generating agencies, including the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the Federal Inland Revenue Service (FIRS), and the Nigeria Customs Service (NCS), particularly through taxes and duties.
Delta, Lagos, and Rivers states received the highest allocations, while Alimosho Local Government Area in Lagos led the pack for local governments. States producing solid minerals, however, did not receive derivation revenue due to low output.
NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, called for reforms in the solid minerals sector to boost state revenues, while also urging the Central Bank of Nigeria (CBN) to stabilise the exchange rate to minimise fluctuations in remittances.
The report also emphasised the need for greater transparency in managing special revenue accruals, including derivation arrears and debt repayment refunds.
