LIVE UPDATES
A recent report has revealed that at least 10 states in Nigeria experienced a significant increase of 50 per cent or more in their monthly allocation from statutory federal funds.
Additionally, 12 out of the 36 states saw an increase of 40 per cent or more in their monthly allocation.
Data sourced from the Federation Accounts Allocation Committee's monthly reports, as released by the National Bureau of Statistics, indicated a 27 per cent increase in the total allocation to the 36 states, rising to N4.5bn in 12 months from N3.58tn in the corresponding period.
The comparison was made between the amount of revenue shared by states between June 2022 and 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 N10.13tn as statutory allocation from the federation account.
States such as Abia, Benue, Ekiti, Katsina, Kwara, Lagos, Ogun, Osun, Plateau, and Taraba experienced an increase of over 50 per cent, while others like Adamawa, Anambra, Borno, Cross Rivers, Ebonyi, Enugu, Kano, Kebbi, Nasarawa, Niger, Oyo, and Sokoto saw an increase of over 40 per cent.
The Federation Account Allocation Committee disburses allocations from the revenues generated into the Federations Accounts, which comprise multiple accounts specific to a sector or business type.
The revenue shared at FAAC meetings by the federal, state, and local governments primarily comes from oil exports, taxes, and other statutory allocations.
Under the current revenue-sharing formula, the Federal Government receives 52.68 per cent of the revenue, while states and local governments get 26.72 per cent and 20.60 per cent respectively.
This fund serves as a major source of revenue for most states and is intended to facilitate development at different levels of government.
