The Nigeria Extractive Industries Transparency Initiative (NEITI) released a report revealing that the federal, state, and local governments shared a total of N10.143 trillion from the federation account as statutory revenue allocations in 2023.
The report, presented by NEITI’s Executive Secretary, Orji Ogbonnaya Orji, aims to enhance public understanding of federation account allocations and promote accountability in public finance management.
According to the report, the breakdown of the revenue receipts shows that the federal government received N3.99 trillion, representing 39.37 per cent of the total allocation. The 36 states received N3.585 trillion (35.34 per cent), while the 774 local government councils shared N2.56 trillion (25.28 per cent).
The increase in revenue allocations in 2023, amounting to N1.934 trillion or 23.56 per cent compared to 2022, was attributed to improved revenue remittances due to the removal of petrol subsidy and the floating of the exchange rate by the new administration.
The report also highlighted that while total revenues distributed increased by 23.56 per cent in 2023, the increase varied among the tiers of government due to different revenue streams contributing to the federation account.
In terms of state-by-state share of allocations, Delta State received the largest amount of N402.26 billion, followed by Rivers State with N398.53 billion. On the other hand, Nasarawa State received the least amount of N73.32 billion.
The report also noted that nine states received the 13 per cent allocation allocated to mineral-producing states from proceeds of mineral revenue, with Delta, Akwa Ibom, and Anambra states recording significant derivation revenues.
Solid minerals-producing states did not receive derivation revenues during the last quarter of 2023, as revenues must accumulate over time before sharing.
Peoples Gazette