In a staggering fiscal revelation, the Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that a colossal sum of N8.79 trillion was disbursed to the 36 states, the Federal Capital Territory (FCT), and the 774 local government councils between 2020 and 2021 as part of Federation Account allocations.
The NEITI report, encompassing the Fiscal Allocation and Disbursements Audit (FASD), outlines that this revenue encapsulates gross statutory allocations, value-added tax, and the 13 percent derivation for mineral-producing states.
Regional breakdowns depict an asymmetrical allocation landscape, with the South-South emerging as the highest recipient, securing N2.59 trillion, which accounts for 29.53 percent of the total revenue shared among the federating units. This substantial figure is largely attributed to the exclusive 13% derivation revenue allocated to nine oil-producing states, five of which hail from the South-South geopolitical zone.
In contrast, the South-East received the lowest allocation, totaling N963 billion or 10.96 percent of the total disbursed amount. Amongst the South-South states, Delta State led the allocation chart with N372.07 billion, closely trailed by Rivers with N298.68 billion and Akwa Ibom with N281.78 billion. Conversely, Cross River registered the least allocation at N66.83 billion during the review period.
The state-wise breakdown across zones revealed significant disparities in allocations. Notably, Lagos State in the South-West secured the highest allocation at N243.58 billion during the period under review, followed by Kano State in the North-West with N163.41 billion and the FCT in the North Central with N112.77 billion. Imo State emerged as the top recipient in the South East with an allocation of N113.45 billion.
