Naija247news reports that the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that the Federation Account Allocation Committee (FAAC) disbursed a total of N15 trillion to the federal, state, and local governments in 2024. The report highlights Lagos and Delta states as the top recipients, with allocations of N531 billion and N450 billion, respectively.
Thank you for reading this post, don't forget to subscribe!Naija247news gathered that the disclosure was made in NEITI’s latest report on revenue distribution, which provides insight into how Nigeria’s oil and non-oil revenues were shared among different levels of government. The N15 trillion disbursement represents an increase compared to previous years, reflecting higher oil prices and improved revenue collection from non-oil sources.
According to Naija247news, the federal government received the largest portion of the allocation, followed by state governments, while local governments got the least share. The revenue distribution aligns with the country’s revenue-sharing formula, which allocates funds based on factors such as derivation, population, and economic activity.
Naija247news understands that Lagos, Nigeria’s commercial hub, continues to top the list of highest earners due to its significant contribution to non-oil revenues, including taxes and internally generated funds. Delta, a major oil-producing state, secured the second-highest allocation, benefiting from the 13% derivation principle that grants oil-producing states a higher share of revenue.
Naija247news reports that other states that received substantial allocations include Rivers, Akwa Ibom, and Bayelsa, all of which are among Nigeria’s leading oil-producing regions. Meanwhile, some states with lower economic activity and revenue generation potential received comparatively smaller allocations, raising concerns about economic imbalance and fiscal dependence on federal allocations.
Naija247news gathered that NEITI emphasized the need for states to improve their internally generated revenue (IGR) and reduce reliance on FAAC disbursements. The agency warned that fluctuating oil prices and global economic uncertainties could affect future allocations, making it imperative for states to explore alternative revenue sources.
The report also sheds light on transparency concerns surrounding how allocated funds are utilized. NEITI urged government agencies at all levels to ensure accountability in spending, particularly in sectors such as infrastructure, healthcare, and education.
As stakeholders analyze the implications of the N15 trillion disbursement, Naija247news will continue to monitor how state governments manage their allocations and implement policies to strengthen fiscal sustainability.
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