The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that the Federation Accounts Allocation Committee (FAAC) disbursed a whopping N15.26 trillion to the federal, state, and local governments in 2024.
This represents a significant 43% increase from previous years, attributed to the federal government’s fiscal reform policies, particularly the removal of petrol subsidy and foreign exchange rate adjustments.
According to NEITI’s Executive Secretary, Orji Ogbonnaya Orji, the report’s objective is to assess the sustainability of the federal and state governments’ borrowing to fund their projects and programs.
Orji pointed out the need to address the implications of natural resource dependence, especially for states benefiting from the 13% derivation revenue from oil, gas, and solid minerals.
The breakdown of the disbursements shows that the federal government received N4.95 trillion, state governments got N5.81 trillion, and local governments were allocated N3.77 trillion.
State governments recorded the highest percentage increase, with allocations growing by 62% from N3.58 trillion in 2023 to N5.81 trillion in 2024.
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.
The report highlights a significant financial divide among states, 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.
Total debt deductions for states’ foreign debts and other contractual obligations amounted to N800 billion, representing 12.3% of total allocations.
Orji advised the government to sustain policy reform measures to encourage sustainable revenue growth and economic stability, prioritizing job creation, poverty reduction, and control of inflation on goods and services.
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