THE three tiers of government- federal, state and local governments- shared N10.143trillion from the Federation Account as statutory revenue allocations last year alone.
The Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Orji Ogbonnaya Orji, explained in a report on the Federation Account Revenue Allocations for last year, released in Abuja on Tuesday, March 19, that the NEITI FAAC Quarterly Review was carried out to enhance public understanding of Federation Account allocations and disbursements as published by government.
He said the ultimate objective of the report was to strengthen knowledge, awareness and promote public accountability of all institutions in public finance management, noting that a breakdown of the revenue receipts showed that the federal government received N3.99trillion, representing 39.37 per cent of the total allocation.
The 36 states got N3.585trillion, representing 35.34 per cent, while the 774 local councils shared N2.56trillion, equivalent to 25.28 per cent.
A further analysis of the N10.143trillion disbursements in 2023 showed an increase of N1.934 trillion or 23.56 per cent when compared to the disbursement of N8.209trillion shared in 2022.
The review attributed the increase to improved revenue remittances to the Federation Account due to the removal of petrol subsidy and the floating of the exchange rate by the new administration.
The report highlighted that while total revenues distributed from the account recorded an increase of 23.56 per cent last year, the increase accruing to each tier of government varied due to the type of the revenue streams contributing to the inflows into the Federation Account.
Orji stated that the NEITI Quarterly Review of last year’s FAAC allocations revealed that the federal, state and local governments cumulatively received N1.934trillion more than the amount shared in 2022.
He added that allocation for the first quarter of last year increased by N579.71billion (33.19 per cent) when compared to the first quarter of 2022, while the second, third and fourth quarters increased by 10.32 per cent, 27.49 per cent and 23.42 per cent, respectively.
“The Federal Government’s share increased by N574.21billion (16.79 per cent) from the N3.42trillion it received in 2022 to N3.99 trillion in 2023.
“The state governments shared N3.59trillion in 2023 compared to the N2.7 trillion they got in 2022, showing an increase of 29.99 per cent.
“Similarly, local government councils’ share of federation allocation was N2.57trillion in 2023 compared to N2.032 trillion in 2022, which amounts to a 26.22 per cent increase
“Total distributed revenue from the Federation account recorded an increase of 23.56 per cent in 2023,” he said.
The NEITI boss said the increase that accrued to each tier of government varied, largely due to the type of revenue item that contributed to the inflows into the Federation Account, noting: “In the same period (2023), states and local governments recorded increases in their allocations of 29.99 per cent and 26.22 per cent, respectively.
“The increase in allocation to the Federal Government, however, was 16.79 per cent.”
He further said the state-by-state share of the allocations showed that Delta State received the largest share of N402.26billion (gross), followed by Rivers, which received N398.53billion.
According to him, the figure is inclusive of the state’s share of oil and gas derivation revenue, adding: “Akwa-Ibom State received the third largest allocation of N293.58billion; Nasarawa State received the least amount of N73.32billion, while Ebonyi and Ekiti states received N73.91billion and N74.04billion, respectively.
“The review observed that the first five states that topped the allocation during the period under review are among the major oil producing states in the country,” he stated.
On the share of 13 per cent derivation revenue, Orji said nine states received the 13 per cent allocated to mineral producing states from proceeds of mineral revenue.
“The derivation revenue remains a significant portion of revenue for states like Delta, Akwa Ibom, Anambra and Rivers states.
“Also, the derivation revenues of states, such as Delta, Akwa Ibom and Bayelsa, which were 161.47 per cent, 141.25 per cent and 127.89 per cent, respectively, eclipsed their statutory revenues.
“Rivers State’s derivation revenue was 74.15 per cent during the period. Notably, the other five oil producing states recorded lesser derivation revenue compared to the four above.
“For example, Ondo State had 27.71 per cent, Edo had 30.04 per cent, while Abia, Anambra and Imo recorded a derivation revenue of about 20 per cent or less,” he explained further.
The NEITI report noted that solid minerals producing states did not receive derivation revenues during the last quarter of last year because of the need to allow revenues to accumulate over a period of time before sharing.
Meanwhile, a breakdown of the amounts received by the tiers of government for February this year showed that Delta still got the highest among the states from the sum of N2.07trillion disbursed to the three tiers of government from the total revenue generated in January.
Here is the breakdown:
Abia: 8.3BN
Adamawa: 8.4BN
Akwa Ibom: 26.6BN
Anambra: 10.1BN
Bauchi: 8.3BN
Bayelsa: 22.8BN
Benue: 9.7BN
Borno: 10.5BN
Cross River: 6.6BN
Delta: 38.1BN
Ebonyi: 7.3BN
Edo: 10.2BN
Ekiti: 6.9BN
Enugu: 8.5BN
Gombe: 7.1BN
Imo: 9.5BN
Jigawa: 9.8BN
Kaduna: 7.3BN
Kano: 13.6BN
Katsina: 9.8BN
Kebbi: 8.8BN
Kogi: 7.4BN
Kwara: 7.3BN
Lagos: 23.6BN
Nasarawa: 7.7BN
Niger: 8.5BN
Ogun: 7.1BN
Ondo: 10.3BN
Osun: 7.8BN
Oyo: 10.5BN
Plateau: 7.8BN
Rivers: 28.4BN
Sokoto: 8.4BN
Taraba: 8.1BN
Yobe: 7.9BN
Zamfara: 7.9BN
