The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that the Federation Accounts Allocation Committee (FAAC) disbursed N3.473 trillion to the federal, state, and local governments in the second quarter of 2024. This represents a 1.42% increase (N46.77 billion) compared to the first quarter of 2024.
According to NEITI’s Quarterly Report on Federation Account Revenue Allocations for Q2 2024, the federal government received N1.102 trillion (33.35%), while the 36 states shared N1.337 trillion (40.47%) and the 774 local government councils received N864.98 billion (26.18%). Additionally, nine oil-producing states received N169.26 billion as derivation revenue.
Key highlights from the report include:
- Increase in revenue allocations in latter months of 2023 and early 2024
- Delta State received the largest share of allocations (N137.36 billion)
- Alimosho Local Government in Lagos State received the highest allocation (N5.72 billion)
- Nine oil-producing states benefited from 13% oil derivation revenue
- Solid minerals-producing states did not receive derivation revenue due to insufficient revenue generation
NEITI’s Executive Secretary, Dr. Ogbonnaya Orji, emphasized the importance of transparency and accountability in public finance management. The agency recommended:
- Diversification of revenue sources for states
- Strengthening measures to stabilize exchange rates
- Adoption of realistic budget benchmarks
- Increased transparency in special revenue accruals
The report aims to promote public accountability and enhance knowledge of Nigeria’s fiscal operations.
