Ten states across the federation have experienced a significant boost of 50 percent or more in their monthly allocations from statutory federal funds. Additionally, 12 out of the 36 states saw an increase of 40 percent or more in their monthly allocations.
According to data from the Federation Accounts Allocation Committee (FAAC) reports, released by the National Bureau of Statistics (NBS), the total allocation to the 36 states rose by 27 percent, reaching N4.5 billion over 12 months, compared to N3.58 trillion in the previous period. This report is based on a comparison of the revenue shared by states between June 2022 to May 2023 and June 2023 to May 2024.
In the first five months of 2024 (January to May), the Federal Government, 36 states, and 774 local governments shared N10.13 trillion as statutory allocation from the federation account. Findings showed that states with over a 50 percent increase include Abia, Benue, Ekiti, Katsina, Kwara, Lagos, Ogun, Osun, Plateau, and Taraba.
Other states, such as Adamawa, Anambra, Borno, Cross Rivers, Ebonyi, Enugu, Kano, Kebbi, Nasarawa, Niger, Oyo, and Sokoto, saw increases of over 40 percent.
The Federation Account Allocation Committee disburses allocations from revenues generated into the Federation Accounts, which comprise multiple accounts specific to various sectors or business types. Most of the revenue shared at FAAC meetings among the federal, state, and local governments comes from oil exports, taxes, and other statutory allocations.
Under the current revenue-sharing formula, the Federal Government receives 52.68 percent of the revenue, states receive 26.72 percent, and local governments get 20.60 percent. These funds, a major source of revenue for most states, aim to ensure development at different levels of government and help states and local governments meet their obligations.
A breakdown of the allocation showed that under President Tinubu, the federal government received N4.75 trillion, a surge of 28.3 percent from the N3.7 trillion disbursed in one year under his predecessor. The state government allocation under Tinubu’s first year rose by 53.8 percent to N4.54 trillion, compared to the N2.95 trillion disbursed during Buhari’s period. For local governments, the revenue disbursed under Tinubu rose by 76 percent or N1.38 trillion to N3.84 trillion from the N2.18 trillion shared under Buhari.
Further analysis showed that Abia state’s allocation increased by 50.5 percent to N95.05 billion under Tinubu, up from N63.15 billion. Adamawa’s revenue surged by 43.7 percent to N91.89 billion, compared to N63.91 billion under Buhari. Anambra’s revenue saw a 42.13 percent increase to N114.52 billion from N80.57 billion in the preceding year.
Comparing allocations during Buhari’s administration, Benue state’s allocation increased by 53.46 percent from N69.65 billion. Rivers state, the second-highest recipient under Tinubu, saw an 8.86 percent increase to N316.51 billion from N290.77 billion under Buhari. Akwa Ibom and Bayelsa saw declines of 14.3 percent and 0.22 percent, respectively.
Lagos State’s allocation under Tinubu grew by 59.6 percent to N253.92 billion, compared to N159.1 billion previously. Similarly, Kano state’s allocation rose by 45.16 percent to N152.34 billion from N104.94 billion. Gombe recorded a 38.75 percent increase from N55.32 billion to N76.75 billion by the end of May 2024.
Other states also saw increases: Borno (46.05 percent), Cross Rivers (45.66 percent), Ebonyi (40 percent), Ekiti (55.8 percent), Enugu (42.82 percent), Katsina (50.57 percent), Kebbi (45.54 percent), Kwara (55.48 percent), Nasarawa (43.94 percent), Niger (43.14 percent), Ogun (70.15 percent), Osun (75.59 percent), Oyo (41.71 percent), Plateau (55.95 percent), Sokoto (49.20 percent), and Taraba (60.86 percent).