The Federal Government deducted over N78bn from allocations made to the states for external debt servicing, according to findings.
This was according to data from the Federation Account Allocation Committee Disbursement reports published by the National Bureau of Statistics. The deductions were made in 2022 from the allocations given to state governments from the Federation Account.
The federation account is currently being managed under a legal framework that allows funds to be shared under three major components: statutory allocation, Value Added Tax distribution and derivation principle.it was observed that the most hit state by the deductions was Lagos, with about N23.61bn deducted in 2022 for external debt servicing.
