The Federation Accounts Allocation Committee (FAAC) disbursed N3.473 trillion to Nigeria’s three tiers of government in the second quarter of 2024, marking a 1.42% increase compared to Q1.
This data was released by the Nigeria Extractive Industries Transparency Initiative (NEITI) in its latest quarterly report, which aims to enhance public accountability in managing public funds.
NEITI Executive Secretary, Orji Ogbonnaya Orji, highlighted the need for civil society organizations to strengthen their involvement in monitoring government allocations and disbursements.
According to the report, the Federal Government received N1.102 trillion (33.35%), states N1.337 trillion (40.47%), and local governments N864.98 billion (26.18%).
Nine oil-producing states also received N169.26 billion as their derivation share. States like Delta and Lagos topped the allocation chart, while Nasarawa and Ebonyi received the least.
Additionally, key revenue agencies like the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS) were noted for contributing oil royalties, VAT, and excise duties to the Federation Account.
The report also pointed out an increase in debt deductions, with Bauchi State recording the highest at N6.49 billion, and solid minerals-producing states receiving no derivation due to low revenue.
NEITI urged states to diversify their revenue sources and advised the Central Bank to stabilize the exchange rate to reduce fluctuations in remittances. The agency also called for improved transparency in managing special revenues such as derivation arrears and debt refunds.