PUNCH
No fewer than 10 states across the federation received a boost of 50 per cent or more in their monthly allocation from statutory federal funds, Findings by the PUNCH have shown.
This was as 12 out of the 36 states received an increase of 40 per cent or more in their monthly allocation.
According to data sourced from monthly reports of the Federation Accounts Allocation Committee, as released by the National Bureau of Statistics, the total allocation to the 36 states also increased by 27 per cent to N4.5bn in 12 months from N3.58tn in the corresponding period.
In the first five months of 2024, (January to May), the Federal Government, 36 states and 774 local governments shared N10.13tn as statutory allocation from the federation account.
Findings showed that states with over 50 per cent increase include Abia, Benue, Ekiti, Katsina, Kwara, Lagos, Ogun, Osun, Plateau and Taraba states.
Other states including Adamawa, Anambra, Borno, Cross Rivers, Ebonyi, Enugu, Kano, Kebbi, Nasarawa, Niger, Oyo, and Sokoto States got an increase of over 40 per cent.
The Federation Account Allocation Committee disburses allocations from the revenues generated into the Federations Accounts, which comprise multiple accounts specific to an or a sector/ business type.
The bulk of the revenue shared at FAAC meetings by the federal, state, and local governments are earnings from oil exports, taxes, and other statutory allocations.
Under the current revenue-sharing formula, the Federal Government gets 52.68 per cent of the revenue, states 26.72 per cent, and local governments 20.60 per cent.
The fund which is arguably the major source of revenue for most states is to ensure development at different levels of government and also to enable the states and LGs to meet their obligations.
