The Nigeria Extractive Industries Transparency Initiative (NEITI) reported that the Federation Accounts Allocation Committee (FAAC) disbursed ₦3.473 trillion to the three tiers of government in Q2 2024, an increase of ₦46.77 billion or 1.42% compared to the first quarter of 2024.
The federal government received ₦1.102 trillion, representing 33.35% of the total allocation. The 36 states received ₦1.337 trillion or 40.47% of the entire monies, while the 774 local government councils shared ₦864.98 billion or 26.18%
Allocation to state governments saw an increase of ₦58.13 billion (4.29%), and local government councils experienced a rise of ₦30.82 billion (3.57%). However, the nine oil-producing states received ₦169.26 billion as their derivation share from mineral revenue, a decrease of ₦41.44 billion (3.76%) from the previous quarter.
The report highlighted an upward trend in revenue allocations in the latter months of 2023 and early 2024. Delta State received the largest share of allocations in Q2 2024, with a gross allocation of ₦137.357 billion, including oil derivation.
Lagos State followed with ₦123.282 billion, Rivers State was third with ₦108.104 billion. Ebonyi and Ekiti States got the least, with ₦24.735 billion and ₦25.404 billion, respectively. Nine states benefited from 13% oil derivation revenue, with Delta State leading at 40.153%.
NEITI recommended that states take advantage of ongoing reforms in the solid minerals sector to diversify their revenue sources. The Central Bank of Nigeria should strengthen measures to stabilize the exchange rate and reduce fluctuations in Federation Account remittances.
It also demanded that the Revenue Mobilisation Allocation and Fiscal Commission (RMFAC) and the Office of the Accountant General of the Federation (OAGF) “increase transparency and accountability, particularly in the payment of special revenue accruals like derivation arrears and debt repayment refunds.”
“The ultimate goal of this disclosure is to enhance knowledge, increase awareness, and promote public accountability in the management of public finances,” it said.
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