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, based on their respective economic developments and the ability to generate revenues from other states, some states can manage to survive financially without the federal allocation. On the other hand, some can barely operate without the monthly allocation from FAAC as they generate little or no revenues from other sources.
Legit.ng in this piece lists 10 states that are most dependent on the federal allocation, according to The Cable Index, citing data from the National Bureau of Statistics (NBS).
Below are the “10 most FAAC-dependent states”:
1. Adamawa (83.3%)
2. Bayelsa (89.6%)
3. Borno (88.3%)
4. Katsina (88.2%)
5. Kebbi (87.8%)
6. Taraba (87.7%)
7. Yobe (85.9%)
8. Gombe (85.8%)
9. Ebonyi (85.7%)
10. Akwa Ibom (84.2%)
Legit.ng 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.
Meanwhile, following the decrease in Nigeria’s income, the minister of finance, budget, and planning, Zainab Ahmed, has said the country’s revenue leakages are making her lose sleep.
The minister made this known while responding to a question posed to her by Poju Oyemade, senior pastor of Covenant Christian Centre, during The Platform in Lagos. Ahmed said her great concern is about revenue, adding that her concern “number one is revenue, number two is revenue and three – I would say, is revenue.”
