Federal, States, LG’s Share N3.473trn In Q2 2024 – NEITI
By Stephanie Odiase
Data released by the Nigeria Extractive Industries Transparency Initiative (NEITI) has shown that the Federation Accounts Allocation Committee (FAAC) disbursed N3.473 trillion to the three tiers of government in the second quarter (Q2) of 2024, reflecting an increase of N46.77 billion (1.42%) compared to the first quarter of 2024.
The figures are part of NEITI’s latest Quarterly Report on federation account revenue allocations for Q2 2024, according to the Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, who announced the release of the report at the NEITI House, Abuja on Monday.
The Quarterly Review aims to highlight the sources of funds into the federation account and the factors affecting the growth or decline in revenues and distributions over time.
“The ultimate goal of this disclosure is to enhance knowledge, increase awareness, and promote public accountability in the management of public finances,” Dr. Orji stated, while urging citizens and civil society organizations to show interest and strengthen their capacity in budget tracking and monitoring of allocations and disbursements to all tiers of government.
A breakdown of the report reveals that the Federal Government received N1.102 trillion, representing 33.35% of the total allocation, the 36 states received N1.337 trillion (40.47%), the 774 local government councils shared N864.98 billion (26.18%), while the nine oil-producing states received N169.26 billion as their derivation share from mineral revenue.
A comparison with the previous quarter shows that the Federal Government’s allocation decreased by N41.44 billion (3.76%), while state governments saw an increase of N58.13 billion (4.29%), and local government councils experienced a rise of N30.82 billion (3.57%).
The report identified the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the Federal Inland Revenue Service (FIRS), and the Nigeria Customs Service (NCS) as the main revenue-generating agencies for the Federation Account. Their contributions include oil and gas royalties, petroleum profit tax, company income tax, value-added tax, and import & excise duties.
State-by-State allocations analysis showed that Delta State received the largest share in Q2 2024, with a gross allocation of N137.357 billion, including oil derivation. Lagos State followed with N123.282 billion, and Rivers State came in third with N108.104 billion. Nasarawa, Ebonyi, and Ekiti States received the least, with N24.735 billion and N25.404 billion, respectively.
The report showed that Bauchi State recorded the highest debt deductions in Q2 2024 at N6.49 billion, followed by Ogun State. Anambra State had the least deductions at N115.6 million, while Lagos and Nasarawa recorded no debt deductions for the quarter.
NEITI in a statement by its Assistant Director, Communications & Stakeholders’ Management, Chris Ochonu, recommended that the Central Bank of Nigeria strengthen measures to stabilize the exchange rate and reduce fluctuations in federation account remittances, while States should adopt realistic budget benchmarks for oil production and exports to minimize fiscal shocks from price volatility.
Subscribe To Newsletter
