•Naira notes
The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced that the Federation Accounts Allocation Committee (FAAC) disbursed N3.473 trillion to the three tiers of government in the second quarter of 2024.
This reflects an increase of N46.77 billion (1.42%) compared to the first quarter of 2024.
In a statement, NEITI’s Assistant Director, Communication and Advocacy, Chris Ochonu, presented the key highlights to show that the Federal Government received N1.102 trillion (33.35% of total allocation), 36 states received N1.337 trillion (40.47%) while the 774 local government councils shared N864.98 billion (26.18%), adding that the nine oil-producing states received N169.26 billion as derivation share from mineral revenue.
According to the agency, the main revenue-generating agencies were the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Federal Inland Revenue Service (FIRS), and Nigeria Customs Service (NCS) through oil/gas royalties, petroleum profit tax, company income tax, VAT, and import/ excise duties.
NEITI urged civil society organisations to strengthen monitoring and tracking of allocations and disbursements to all tiers of government.
The report also highlighted the need for states to diversify revenue sources by taking advantage of solid minerals sector reforms.
Ochonu further listed state-by-state allocations which indicates that Delta State received the largest share of N137.357 billion, Lagos State received N123.282 billion, Rivers State received N108.104 billion, while Nasarawa, Ebonyi, and Ekiti states received the least, with N24.735 billion and N25.404 billion.
Also, Delta State led the derivation revenue with 40.153%, followed by Bayelsa (38.112%) and Akwa Ibom (36.117%), Rivers State recorded 27.272%, while other oil-producing states had ratios below 20%.
Solid minerals-producing states did not receive derivation revenue due to insufficient revenue generation.
NEITI’s quarterly review aims to enhance knowledge, increase awareness, and promote public accountability in managing public finances.
