THE Federation Account Allocation Committee (FAAC) disbursed a total of N5.38 trillion to the 36 states and the Federal Capital Territory (FCT) between January and December 2024, according to figures obtained by The Nation.
This amount represents an increase of about N1.46 trillion over the N3.92 trillion received by the states and the FCT in the previous year.
The states received a total of N412.09 billion in January; N406.96 billion in February; N454.70 billion in March and N428.24 billion in April.
A total of N463.04 billion got to them in May; N365.81 billion (lowest allocation for the year) in June before going up to N461.98 billion in July and N473.48 billion in August.
Others were as follows: September: N422.86 billion; October: N453.72 billion; November: N490.70 billion and December: N549.79 billion which was the highest allocation for the year.
These variations in allocation were influenced by overall revenue performance and the criteria used by FAAC to calculate the allocations.
In comparison, 2023 allocations were much lower, peaking at N396.21 billion in January and hitting a low of N259.50 billion in April.
The discrepancies highlight improved revenue generation in 2024, driven by the removal of fuel subsidies, increased oil sales and better earnings from non-oil sectors, including taxes and royalties.
Among the states, Delta received the highest allocation in March 2024 with N62.7 billion, followed by Rivers State with N41.7 billion, and Akwa Ibom State with N41.6 billion. The oil-producing states benefit from the derivation principle, which ensures a part of oil revenue goes directly to Niger Delta states.
The increase in allocations is expected to assist state governments in enhancing infrastructure, education, healthcare and economic development. Stakeholders have urged responsible spending to ensure improvement in citizens’ quality of life.
A breakdown of the state by state allocations shows that Delta, Rivers, Akwa Ibom, Lagos and Bayelsa received the highest allocations
Delta got a total of N485bn; Rivers, N384bn; Akwa Ibom, N338bn; Lagos, N321bn and Bayelsa, N293bn.
Other top revenue allotees are: Kano, N166bn; Edo, N124bn; Ondo, N122bn; Anambra, N115bn and Oyo N113bn.
With a total of N5.38 trillion allocated in 2024, experts are optimistic about continued revenue growth into 2025.
Analysts believe that diversifying the economy and improving revenue collection methods could sustain or exceed last year’s accomplishments.
Looking at trends from 2022 to 2024, governmental allocations have significantly increased since June 2023, indicating more effective resource mobilization and equitable distribution of national revenues.
The Federal Government received N3.42 trillion in 2022, N3.96 trillion in 2023 and N4.65 trillion in 2024. Over these two years, it recorded a cumulative increase of 35.84 per cent.
State governments also benefited greatly during this period, receiving N2.75 trillion in 2022, followed by N3.92 trillion in 2023, and N5.38 trillion in 2024, therefore, the state governments received a 95.49 percent cumulative increase of FAAC allocations from 2022 to 2024.
The 774 local governments received N1.995 trillion in 2023 and N2.285 trillion in N3.994 trillion.
The LGAs experienced a 14.51 per cent increase in allocations in 2023 compared to 2022 period, reflecting a steady rise in funds allocated to grassroots governance.
There was a 74.76 per cent increase between 2024 and 2023, which shows a significant boost in revenue directed towards local development efforts.
Interestingly, over the two years (2022 to 2024), LGAs recorded a cumulative increase of 100.26 per cent, doubling their allocation.
Beneficiaries of 13 per cent Derivation Fund were not left out of the surge in FAAC allocations. In 2022, they received N601.049 billion, N454.677 billion in 2023 and N1.135.802 trillion in 2024.
Between 2022 and 2023, a 24.34 percent decrease was observed, reflecting possible fluctuations in oil revenue or derivation parameters. In 2023 and 2024, the allocation surged by 149.84 percent, marking a significant rebound and surpassing the 2022 figure.
From 2022 to 2024, the derivation fund recorded a cumulative growth of 88.93 per cent, emphasising the growing importance of the fund in fostering resource control.
The overall rise in FAAC allocations indicates the Federal Government’s commitment to fair revenue sharing across all levels of government. The increases in funding for states and LGAs reveal efforts to enhance service delivery and local governance.
The surge in these allocations also represents a hopeful trend in Nigeria’s federal revenue generation and distribution. However, it is crucial for state governments to manage these resources effectively and transparently to foster sustained growth and improve the quality of life for all Nigerians.