The federal government, the 36 states of the federation and the over 700 local government areas share revenues from the sale of crude oil on a monthly basis
All the tiers of government are meant to use the funds alongside their Internally Generated Revenues (IGR) to take care of their recurrent expenditures, capital projects and other needs.
The fund is disbursed by the Federation Account Allocation Committee (FAAC).
Meanwhile, while some states depend heavily on FAAC to meet their financial needs, others are not so dependent on the federal monthly allocation as its percentage in their total revenues is relatively small. Fugitive news in this piece lists 10 states that are least dependent on the federal allocation, according to The Cable Index which cited 2019 data from the National Bureau of Statistics (NBS).
Below are the “10 least FAAC-dependent states”:
1. Lagos (22.8%)
2. Ogun (35.3%)
3. FCT (49.1%)
4. Rivers (53.0%)
5. Osun (57.5%)
6. Kwara (58.1%)
7. Kaduna (59.9%)
8. Cross River (61.2%)
9. Enugu (62.6%)
10. Ondo (65.8%)
Fugitive news earlier reported that the Nigerian government at all levels, the federal, states and local governments shared N604.004bn as federation allocation revenue for the month of October 2020.
The Federation Accounts Allocation Committee (FAAC) announced the figure after its meeting on Wednesday, November 18.
The meeting was chaired by the Permanent Secretary of the Federal Ministry of Finance, Budget and National Planning, Aliyu Ahmed.
In another report, the Nigeria Development Update (NDU) of the World Bank has predicted that Nigeria’s economic recession will last for the next three years, that is till 2023.