Between January and May 2024, the Federation Accounts Allocation Committee (FAAC) disbursed N2.164 Trillion ($ ) among the 36 states.
A Federation Account Allocation Committee (FAAC) shares accruals to the Federal account monthly. These funds are being shared among the Federal government, the 36 states of the federation and 774 local government areas.
Disbursement of FAAC funds ensures development at different levels of government while helping states and local governments meet their day-to-day obligations.
The Committee ensures that revenue declared for distribution by the Federation Account Allocation Committee (FAAC) is shared according to the approved Revenue Allocation Formulae and Indices.
The Federal Government receives 52.68% of the total sum while the State and Local Governments receive 26.72% and 20.60% respectively.
States With Highest Allocation
Of the 36 states, 10 received the highest allocation of FAAC revenue between January and May 2024.
However, states don’t all get the same amounts from FAAC. Oil-producing states get a 13% derivation fund, in addition to their statutory percentage of FAAC revenues. Only 8 of the 36 states get the 13% derivation fund. They are Abia, Akwa-Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers.
This explains why 6 out of these 8 states are among the 10 states with the highest FAAC allocation between January and May 2024. The states are Akwa-Ibom, Bayelsa, Delta, Edo, Ondo and Rivers state.
Other factors considered in sharing the FAAC revenue among states are population, land mass, water supply, health facilities, school enrollment, among others.
The 10 states with the least FAAC allocation are Cross-River, Ogun, Ekiti, Gombe, Kwara, Ebonyi, Osun, Kaduna, Kogi, and Plateau state.
Aside from depending on FAAC allocations as a source of income, states and local governments also have Internally Generated Revenue (IGR).
Furthermore, the 20.6% of the federation revenue is shared between 774 local governments spread across the 36 states.
For the Federal Government, its 52.68% revenue from the Federation account is redistributed among 5 components: the FGN consolidated revenue account, derivation and ecology, stabilization fund; the development of natural resource. and to the Federal Capital Territory (FCT) Abuja.