The Nigeria Extractive Industries Transparency Initiative (NEITI) has reported that the Federation Accounts Allocation Committee (FAAC) disbursed N15.26 trillion to the federal, state, and local governments in 2024, marking a significant revenue surge.
According to NEITI’s FAAC Quarterly Review, presented by Executive Secretary Orji Ogbonnaya Orji, the increased disbursement was largely attributed to the federal government’s fiscal reform policies, particularly the removal of petrol subsidies and foreign exchange rate adjustments.
“These reforms have significantly boosted oil revenue remittances, transforming the national and subnational revenue landscape,” Orji stated.
The report highlights how subsidy removal has reshaped government finances, improving revenue flow to all tiers of government. With higher FAAC allocations, states, and local governments are expected to leverage these funds for infrastructure, social services, and economic development initiatives.
As Nigeria continues to implement fiscal reforms, NEITI's findings provide critical insights into the evolving financial structure and its impact on national economic stability.
“The report’s objective is to assess the sustainability of the federal and state governments’ borrowing to fund their projects and programmes,” Orji said.
“As well as the implications of natural resource dependence, particularly for states benefitting from the 13 percent derivation revenue from oil, gas, and solid minerals.
“The analysis focused on crude oil revenue derivation states, as solid minerals continue to underperform despite their significant potential.”