In 2024, Nigeria saw a significant jump in the amount disbursed by the Federation Account Allocation Committee (FAAC), with a total of N5.38 trillion shared among the country’s 36 states and the Federal Capital Territory (FCT).
This represents a massive increase of N1.46 trillion compared to the N3.92 trillion received in 2023. The rise is largely due to improved revenue generation, including higher oil sales, the removal of fuel subsidies, and better earnings from non-oil sectors.
The money was distributed monthly, with the highest allocation coming in December at N549.79 billion, showcasing the country’s recovery and growth in revenue generation.
Some states received significantly more than others, with Delta, Rivers, Akwa Ibom, Lagos, and Bayelsa accounting for a large portion of the total allocation — about N1.8 trillion.
Delta led the pack, receiving a total of N485 billion, followed by Rivers at N384 billion and Akwa Ibom at N338 billion. Lagos and Bayelsa also received substantial portions, contributing to the top revenue allotees.
This trend reflects the importance of oil-producing states, benefiting from the derivation principle, which directs part of the oil revenue to the Niger Delta.
Experts are optimistic that this continued growth in federal allocations will help state governments boost infrastructure, education, healthcare, and other key sectors.
However, with the increased funds comes a call for responsible and transparent spending to ensure these resources are effectively used to improve citizens’ quality of life.
The boost in funding to local governments is especially significant, as they saw a 74.76% increase in allocations from 2023 to 2024, reflecting a positive shift in local governance and development.
With the federal government’s commitment to fair resource sharing, stakeholders are hopeful that this upward trend will continue into 2025, supporting sustainable growth and a better future for Nigerians.
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