Nigeria witnessed its highest-ever revenue distribution in 2024, with the Federation Accounts Allocation Committee (FAAC) disbursing a record N15.26 trillion to the federal, state, and local governments.
This marks a 43% increase from previous years, driven by fiscal reforms such as the removal of fuel subsidies and foreign exchange rate adjustments, according to a new report by the Nigeria Extractive Industries Transparency Initiative (NEITI).
While the surge in allocations could boost development projects, concerns remain over rising debt, inflationary pressures, and economic stability.
Where Did the Money Go?
The FAAC disbursement was shared across three levels of government:
Federal Government: N4.95 trillion (24% increase from 2023)
State Governments: N5.81 trillion (62% increase from 2023)
Local Governments: N3.77 trillion (47% increase from 2023)
Compared to N9.18 trillion in 2022 and N10.9 trillion in 2023, the 2024 allocation reflects a 66.2% jump—the highest in Nigeria’s history.
Which States Received the Most?
Lagos topped the list with N531.1 billion, followed by Delta (N450.4 billion) and Rivers (N349.9 billion).
On the other end, Nasarawa got the lowest allocation of N108.3 billion, trailed by Ebonyi (N110 billion) and Ekiti (N111.9 billion).
Notably, six states—Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano—accounted for 33% of total state allocations, while the six least-funded states received only 11.5%.
Debt Deductions and Fiscal Risks
NEITI also flagged significant debt deductions, totaling N800 billion—12.3% of total allocations.
Lagos: N164.7 billion (highest)
Kaduna: N51.2 billion
Rivers: N38.6 billion
Bauchi: N37.2 billion
With debt servicing eating into allocations, experts warn of fiscal risks for oil-dependent states, urging governments to adopt sustainable revenue strategies to avoid financial instability.
What’s Next?
Dr. Orji Ogbonnaya Orji, NEITI’s Executive Secretary, stressed the need for accountability, economic stability, and job creation.
“The figures show progress, but the challenge is sustainability. Nigeria must ensure that increased revenue translates to real economic impact,” he said.
