The Nigeria Extractive Industries Transparency Initiative (NEITI) announced on Monday that the Federation Accounts Allocation Committee (FAAC) distributed N3.473 trillion to the three tiers of government in the second quarter of 2024. This amount represents an increase of N46.77 billion, or 1.42%, compared to the first quarter of the year.

According to NEITI?s latest Quarterly Report on Federation Account Revenue Allocations, the Federal Government received N1.102 trillion, which accounts for 33.35% of the total allocation. The 36 states were allocated N1.337 trillion, or 40.47%, while the 774 local government councils received N864.98 billion, or 26.18%. Additionally, nine oil-producing states were allocated N169.26 billion as their derivation share from mineral revenue.

The report highlights that while the Federal Government?s allocation decreased by N41.44 billion (3.76%) from the previous quarter, state governments saw an increase of N58.13 billion (4.29%), and local government councils experienced a rise of N30.82 billion (3.57%).

An analysis of monthly disbursements showed an upward trend in the latter months of 2023 and early 2024. Monthly allocations rose from N1.094 trillion in January 2024 to N1.098 trillion in February, but then slightly decreased to N1.065 trillion in March.

Delta State received the highest allocation among states in Q2 2024, totaling N137.357 billion, including oil derivation. Lagos State followed with N123.282 billion, and Rivers State was third with N108.104 billion. Conversely, Nasarawa, Ebonyi, and Ekiti States received the smallest allocations, with N24.735 billion and N25.404 billion, respectively.

At the local government level, Alimosho in Lagos State received the largest allocation of N5.721 billion, followed by Ajeromi/Ifelodun with N4.592 billion and Kosofe with N4.541 billion. Ifedayo received the smallest allocation of N661.82 million.

The report also Indicated that nine states benefited from 13% oil derivation revenue, with Delta State receiving the largest share at 40.153%, followed by Bayelsa at 38.112% and Akwa Ibom at 36.117%. Rivers State recorded a derivation ratio of 27.272%, while other oil-producing states had ratios below 20%.

Solid minerals-producing states did not receive any derivation revenue in Q2 2024 due to insufficient revenue generation from the sector.

Bauchi State had the highest debt deductions for the quarter 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.

Dr. Orji Ogbonnaya Orji, NEITI Executive Secretary, commented on the report, stating, ?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 also urged citizens and civil society organizations, particularly those involved in revenue and expenditure monitoring, to strengthen their capacity in budget tracking and monitoring of allocations and disbursements across all levels of government.

The Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Federal Inland Revenue Service (FIRS), and Nigeria Customs Service (NCS) were identified as the primary revenue-generating agencies for the Federation Account, contributing through oil and gas royalties, petroleum profit tax, company income tax, value-added tax, and import and excise duties. (THISDAY)

Update news