NEITI Report: N10.143 Trillion Shared Among Three Tiers of Government in 2023.
According to the latest report from the Nigeria Extractive Industries Transparency Initiative (NEITI), the three tiers of government in Nigeria – federal, state, and local – shared a total of N10.143 trillion from the Federation Account as statutory revenue allocations in the year 2023.
The Executive Secretary of NEITI, Orji Ogbonnaya Orji, made this announcement at the NEITI House in Abuja, emphasizing the agency’s commitment to transparency in disclosing Federation Account allocations and disbursements. The NEITI FAAC Quarterly Review aims to enhance public understanding and promote accountability in public finance management.
A breakdown of the revenue allocations showed that the federal government received N3.99 trillion (39.37%), while the 36 states got N3.585 trillion (35.34%), and the 774 local government councils shared N2.56 trillion (25.28%) of the total allocation.
Compared to the previous year (2022), there was a significant increase in disbursements, totaling N1.934 trillion or 23.56%. This increase was attributed to improved revenue remittances following the removal of petrol subsidies and adjustments in the exchange rate policies by the government.
The distribution of revenue among the tiers of government varied, with states and local governments experiencing higher percentage increases compared to the federal government.
States saw a 29.99% increase in their allocations, while local governments recorded a 26.22% increase. In contrast, the federal government’s allocation increased by 16.79%.
The report also highlighted state-by-state allocations, with Delta State receiving the largest share of N402.26 billion, followed closely by Rivers State with N398.53 billion. These allocations include shares of oil and gas derivation revenue, with major oil-producing states dominating the top allocation rankings.
Related Posts
Additionally, the report noted the importance of 13% derivation revenue for mineral-producing states, highlighting its significant contribution to states’ revenues, especially in oil-rich regions.
NEITI’s report emphasized the need for fiscal responsibility, conservative budget estimates, economic diversification, and investment in key sectors like power generation to reduce dependence on oil revenues and promote sustainable economic growth across all tiers of government.
