Nigeria’s 36 states received 2.2 trillion naira in 5 months

Between January and May 2024, the Federation Accounts Allocation Committee (FAAC) disbursed N2.164 trillion ($) to the 36 states.

A Federation Account Allocation Committee (FAAC) distributes monthly allocations to the federal account. These funds are distributed among the federal government, the 36 states of the federation and 774 local government areas.

The disbursement of FAAC funds brings about development at various levels of government and helps states and local governments meet their day-to-day obligations.

The Committee ensures that the income declared for distribution by the Federation Account Allocation Committee (FAAC) is distributed in accordance with the approved income distribution formulas and indices.

The federal government receives 52.68% of the total amount, while state governments and local governments receive 26.72% and 20.60% respectively.

States with the highest allocation

Of the 36 states, 10 received the highest allocation of FAAC revenues between January and May 2024.

However, states do not all receive the same amounts from FAAC. Oil producing states receive a 13% derivative fund, in addition to their statutory percentage of FAAC revenues. Only 8 out of 36 states receive the 13% derivative fund. These are Abia, Akwa-Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers.

This explains why 6 of these 8 states are among the 10 states with the highest FAAC allocation between January and May 2024. The states are Akwa-Ibom, Bayelsa, Delta, Edo, Ondo and Rivers State.

Other factors taken into account in distributing FAAC revenues among the states include population size, land area, water supply, health care facilities and school enrollment.

The 10 states with the least FAAC allocation are Cross-River, Ogun, Ekiti, Gombe, Kwara, Ebonyi, Osun, Kaduna, Kogi and Plateau State.

In addition to relying on FAAC allocations as a source of revenue, states and local governments also have internally generated revenue (IGR).

In addition, 20.6% of the federation’s revenues are distributed to 774 local governments spread across 36 states.

For the federal government, 52.68% of the revenue from the federation account is redistributed to 5 components: FGN consolidated revenue account, diversion and ecology, stabilization fund and natural resources development. The fund is also distributed to the Federal Capital Territory (FCT) Abuja.