FG, States LGA shared N3. 47trn to in Q2, 2024—NEITI

Nigeria Extractive Industries Transparency Initiative (NEITI) has said in its latest Quarterly Report that the Federation Accounts Allocation Committee (FAAC) disbursed N3.473 trillion to the three tiers of government in the second quarter of 2024. This figure represented the report said is an increase of N46.77 billion or 1.42 per cent over the amount disbursed in the first quarter of 2024. The federal government received N1.102 trillion, representing 33.35 per cent of the total allocation, while the 36 states received N1.337 trillion or 40.47 per cent of the entire monies and the 774 local government councils shared N864.98 billion or 26.18 per cent. Oil-producing states received N169.26 billion as their derivation share from mineral revenue. 

A comparison with the previous quarter showed that the federal government’s allocation decreased by N41.44 billion (3.76 per cent), while state governments saw an increase of N58.13 billion (4.29 per cent), and local government councils experienced a rise of N30.82 billion (3.57 per cent). On state by state allocations, Delta State received the largest share of allocation of N137.357 billion, including oil derivation. Lagos State followed with N123.282 billion, and Rivers State was third with N108.104 billion. Nasarawa, Ebonyi, and Ekiti States received the least, with N24.735 billion and N25.404 billion, respectively. 

Among local governments, Alimosho in Lagos State received the highest allocation at N5.721 billion, followed by Ajeromi/Ifelodun (N4.592 billion) and Kosofe (N4.541 billion). Ifedayo received the smallest share of N661.82 million. Solid minerals-producing states did not receive derivation revenue in Q2 2024 due to insufficient revenue generation from the sector. Bauchi State recorded the highest debt deductions in Q2 2024 at N6.49 billion, followed by Ogun State. Anambra State with the least deductions at N115.6 million, while Lagos and Nasarawa recorded no debt deductions for the quarter. NEITI recommended that states should take advantage of ongoing reforms in the solid minerals sector to diversify their revenue sources.