A total of 36 States, allocation increased to N432.96 billion in June 2024, about 29.23 per cent Year-on-Year (YoY) growth when compared to N335.02 billion in June 2023.
This is according to Federal Account Allocation Committee (FAAC) data.
The increase in Federal Government (FG) allocation to states under President Bola Tinubu can be attributed to several factors, including revenue generation reforms, removal of fuel subsidy, increased crude oil prices, devaluation of the Naira, among others.
The Tinubu administration has been focused on improving Nigeria’s revenue generation. This includes efforts to plug leakages, increase tax collection efficiency, and diversify revenue sources beyond oil. An increase in revenue could naturally lead to higher allocations to states.
These factors, combined with Tinubu’s broader economic policies aimed at stimulating growth and development, contribute to the increased allocations to states.
An independent investigation by WP revealed that allocation to South South states, followed by South West states have increased in the period under review.
South South states in June 2024 recorded N149.75 billion allocation, about 20.56per cent increase from N124.22 billion in June 2023, while the South West states were allocated about N69.23 billion, representing about 46.10 per cent from N47.39billlion June 2023.
South South geopolitical zone comprises of Akwa Ibom, Bayelsa, Cross River, Delta, Edo and Rivers.
The huge number resulted from the 13 per cent derivation revenue allocated exclusively to five oil-producing states.
It was gathered that FAAC allocation to North West stood at N68.2billliion, a growth of 28.64 per cent from N53.02 billion reported in June 2023.
Further findings revealed that the likes of Rivers, Lagos and Kano states accounted for huge allocation in the period under review, while Ogun, Ekiti and Cross River states are the lowest in terms of monthly allocation.
As Rivers was allocated N32.4 billion in June 2024, a growth of 19.27per cent from N27.24 billion in 2023, while Lagos got N26.59 billion in June 2024, representing an increase of 77.64 per cent from N14.97 billion in June 2023
.Credit -Western Post
