NEITI wants funds monitored, tracked as FAAC shares N3.4tr in Q2 2024

The Federation Accounts Allocation Committee (FAAC) disbursed N3.473 trillion to the three tiers of government in the second quarter of 2024, marking an additional N46.7 billion against what was shared in the first quarter of this year.

The details, contained in a report shared by the Nigerian Extractive Industry Transparency Initiative (NEITI) showed that the Federal Government received N1.102 trillion (33.35 per cent), the 36 states received N1.337 trillion (40.47 per cent) and the 774 local councils shared N864.98 billion (26.18 per cent) of the fund.

The nine oil-producing states received an additional N169.26 billion as their 13 per cent derivation share from mineral revenue. The Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, said the goal of the disclosure was to enhance knowledge, increase awareness and promote public accountability in the management of public finances,” Orji stated.

Orji urged the citizens and civil society organisations, particularly those involved in revenue and expenditure monitoring, to show interest and strengthen their capacity in budget tracking and monitoring of allocations and disbursements to all tiers of government.

While the Nigerian National Petroleum Company Limited (NNPCL) was a major contributor, the latest report showed that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) were identified as the main revenue-contributing agencies into the Federation Account. Their contributions included oil and gas royalties, petroleum profit tax, company income tax, value-added tax as well as import and excise duties.

The report highlighted an upward trend in revenue allocations in the later months of 2023 and early 2024. Total monthly disbursements increased from N1.09 trillion in January 2024 to N1.09 trillion in February but declined slightly to N1.06 trillion in March.

The data showed that Delta State received the largest share of allocations in Q2 2024, with a gross allocation of N137.35 billion, including oil derivation. Lagos followed with N123.28 billion, and Rivers came third with N108.10 billion.

Nasarawa, Ebonyi, and Ekiti states received the least, with N24.73 billion and N25.40 billion, respectively. Among local governments, Alimosho in Lagos received the highest allocation at N5.72 billion, followed by Ajeromi/Ifelodun (N4.59 billion) and Kosofe (N4.54 billion). Ifedayo received the smallest share of N661.82 million.