NEITI reports N3.473 trillion distributed to federal, state and local governments in Q2 2024

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

According to NEITI’s latest Quarterly Report on Federation Account Revenue Allocation, the Federal Government received N1.102 trillion, which is 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%. In addition, the nine oil producing states were allocated N169.26 billion as their share of mineral revenue.

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

Analysis of monthly disbursements shows an upward trend towards the end of 2023 and the beginning of 2024. The monthly allocation increased from N1.094 trillion in January 2024 to N1.098 trillion in February, but then declined slightly to N1.065 trillion in March.

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Delta State received the highest allocation among states in Q2 2024, totaling N137.357 billion, including oil derivations. Lagos State followed with N123.282 billion, and Rivers State was third with N108.104 billion. In contrast, 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 showed that nine states benefited from oil derivation revenues by 13%, 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 mineral producing countries did not receive any derived revenue in Q2 2024 due to insufficient revenue generation from the sector.

Bauchi State had the highest debt reduction in the quarter at N6.49 billion, followed by Ogun State. Anambra State had the least debt reduction at N115.6 million, while Lagos and Nasarawa recorded no debt reduction.

Dr. Orji Ogbonnaya Orji, Executive Secretary of NEITI, commented on the report, saying, “The Quarterly Review aims to highlight the sources of funds flowing into the Federation Account and the factors that influence the growth or decline of revenues and distribution over time. The ultimate objective of this disclosure is to enhance knowledge, raise awareness and promote public accountability in the management of public finances.”

Dr. Orji also urged citizens and civil society organizations, especially those involved in revenue and expenditure monitoring, to strengthen their capacity in budget tracking and monitoring allocations and disbursements at all levels of government.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Federal Inland Revenue Service (FIRS) and Nigerian Customs Service (NCS) are identified as the major revenue generating institutions for the Federation Account, contributing through oil and gas royalties, petroleum profits tax, corporate income tax, value added tax, and import duties and excise.

NEITI reports N3.473 trillion distributed to federal, state and local governments in Q2 2024 first appeared on Latest Nigeria News | Top Stories from Ripples Nigeria.