Lagos, March 19, 2025 – The N15.26 trillion federal allocation disbursed to the three tiers of government in 2024 is higher by 43.per cent over previous year’s allocations.
The Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed this in its NEITI FAAC Quarterly Review released on Tuesday.
The report attributed the increased funds shared among the three tiers of government to the sustained fiscal reform policies of the federal government, particularly the removal of fuel subsidies and the adjustment of foreign exchange rates.
Dr Orji Ogbonnaya Orji, the Executive Secretary, NEITI, said the analysis were conducted against the backdrop of major fiscal reforms that reshaped the revenue landscape, particularly subsidy removal impacts on national and subnational finances.
“The report’s objective is to assess the sustainability of the federal and state governments’ borrowing to fund their projects and programmes as well as the implications of natural resource dependence, particularly for states benefitting from the 13 per cent derivation revenue from oil, gas, and solid minerals.
“The analysis focused on crude oil revenue derivation states, as solid minerals continue to underperform despite their significant potential,” he said.
Orji said the federal received N4.95 trillion, state governments, N5.81 trillion, and local governments N3.77 trillion during the period.
“The NEITI FAAC Quarterly Review showed that distribution to state governments in 2024 recorded the largest percentage increase of 62 per cent from N3.58 trillion in 2023, followed by local government councils with a 47 per cent increase.
“The Federal Government’s share rose by 24 per cent from N3.99 trillion in 2023 to N4.95 trillion in 2024.
“The report highlights that total FAAC allocations increased by 66.2 per cent from N9.18 trillion in 2022 to N10.9 trillion in 2023 and N15.26 trillion in 2024, with the most significant growth occurring between 2023 and 2024,” he said.
“The report also revealed that the Lagos State received the highest allocation of N531.1 billion in 2024, followed by Delta (N450.4 billion) and Rivers (N349.9 billion.
“Conversely, Nasarawa State received the least allocation of N108.3 billion, followed by Ebonyi (N110 billion) and Ekiti (N111.9 billion).
“Furthermore, six states – Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano – each received over N200 billion, collectively accounting for 33 per cent of total allocations to all states.
“While the six lowest-receiving states – Yobe, Gombe, Kwara, Ekiti, Ebonyi, and Nasarawa – accounted for only 11.5 per cent.
“The report revealed a major financial divide, with Lagos, Delta, Rivers, and Akwa Ibom – collectively receiving N1.49 trillion, over three times more than the combined total of the bottom four states – Kwara, Ekiti, Ebonyi, and Nasarawa – which received N442.4 billion.
“The review highlighted that total debt deductions for states’ foreign debts and other contractual obligations amounted to N800 billion, representing 12.3 per cent of total allocations to the 36 states, including derivation revenue,” he said.
He said Lagos State recorded the highest debt deduction of N164.7 billion, accounting for over 20 per cent of total deductions.
He said Kaduna State followed with N51.2 billion, while Rivers (N38.6 billion) and Bauchi (N37.2 billion) also recorded significant debt deductions.
He urged the government to sustain policy reform measures to encourage sustainable revenue growth and economic stability with priority attention focused on job creation, poverty reduction and control of inflation on goods and services.
The NEITI FAAC Review reiterated the need for stakeholders to leverage the findings and data provided to hold all levels of government accountable for effective management of public resources, especially revenues from the extractive industries.
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