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FAAC Allocations Rise by 43% in 2024 – NEITI

By Tony Obiechina, Abuja
The Federation Accounts Allocation Committee (FAAC) has disbursed an unprecedented N15.26 trillion to the Federal, State and Local Governments in 2024.
The disbursements according to a statement by the Nigeria Extractive Industries Transparency Initiative (NEITI), represent a historic high in revenue distribution and a 43% increase compared to previous years.
The FAAC Quarterly Review released in Abuja on Tuesday by NEITI attributed the surge in revenue disbursements to sustained fiscal reform policies of the Federal Government especially the removal of fuel subsidies and foreign adjustment exchange rate policies which has continued to impact positively on oil revenue remittances.
Announcing the report’s release at the NEITI House in Abuja, Dr. Orji Ogbonnaya Orji, Executive Secretary of NEITI, noted that the analyses were conducted against the backdrop of major fiscal reforms that reshaped the revenue landscape, particularly the impact of subsidy removal in mid-2023 on national and subnational finances and the consequences of debt repayment deductions on state allocations.
According to Dr. Orji, the report’s objective is to assess the sustainability of the federal and state governments’ borrowing to fund their projects and programmes, as well as the implications of natural resource dependence, particularly for states benefitting from the 13% derivation revenue from oil, gas, and solid minerals.
He added, “The analysis focused on crude oil revenue derivation states, as solid minerals continue to underperform despite their significant potentials.”
A breakdown of disbursements showed that the Federal Government got N4.95 trillion; State Governments, N5.81 trillion; Local Governments, N3.77 trillion.
Total FAAC Disbursements (Including Derivation Revenue) stood at N15.26 trillion.
The NEITI FAAC Quarterly Review showed that distribution to state governments in 2024 recorded the largest percentage increase of 62% from N3.58 trillion in 2023, followed by local government councils with a 47% increase, while the Federal Government’s share rose by 24% from N3.99 trillion in 2023 to N4.95 trillion in 2024.
The report highlights that total FAAC allocations increased by 66.2% from N9.18 trillion in 2022 to N10.9 trillion in 2023 and N15.26 trillion in 2024, with the most significant growth occurring between 2023 and 2024.
The Quarterly Review attributes the sustained rise in revenue disbursements to the government’s fiscal reforms, specifically the removal of fuel subsidy and exchange rate adjustments, which boosted naira-denominated mineral revenue by over 400%.
While NEITI welcomes and would continue to support the reforms with credible information and data, the Review called for adequate measures to manage and mitigate economic and other social risks associated with reforms in transitional economies like Nigeria.
NEITI outlined such risks to include, Inflationary Pressures, possible rise in Debt Servicing Costs, Fiscal Uncertainties for States Dependent on oil revenues.
NEITI recommended that governments at all levels take innovative actions to mitigate the impact of these economic challenges.
The report also revealed that Lagos State received the highest allocation of N531.1 billion in 2024, followed by Delta (N450.4 billion) and Rivers (N349.9 billion). Conversely, Nasarawa State received the least allocation of N108.3 billion, followed by Ebonyi (N110 billion) and Ekiti (N111.9 billion).
Furthermore, six states—Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano—each received over N200 billion, collectively accounting for 33% of total allocations to all states, while the six lowest-receiving states—Yobe, Gombe, Kwara, Ekiti, Ebonyi, and Nasarawa—accounted for only 11.5%.
The report revealed a major financial divide, with the top four states—Lagos, Delta, Rivers, and Akwa Ibom—collectively receiving N1.49 trillion, over three times more than the combined total of the bottom four states—Kwara, Ekiti, Ebonyi, and Nasarawa—which received N442.4 billion.
The review highlighted that total debt deductions for states’ foreign debts and other contractual obligations amounted to N800 billion, representing 12.3% of total allocations to the 36 states, including derivation revenue.
Lagos State recorded the highest debt deduction of N164.7 billion, accounting for over 20% of total deductions; Kaduna State followed with N51.2 billion, while Rivers (N38.6 billion) and Bauchi (N37.2 billion) also recorded significant debt deductions.
The report noted that many states with high debt ratios were in the lower half of the FAAC allocation rankings but ranked higher for debt deductions, raising concerns about their debt-to-revenue ratios and overall fiscal health.
In recommendations, NEITI urged the government to sustain policy reform measures to encourage sustainable revenue growth and economic stability with priority attention focussed on job creation, poverty reduction and control of inflation on goods and services.
It also recommended exchange rate stability to mitigate inflationary pressures, adopting conservative estimates for crude oil production and pricing to prevent budget shortfall; reviewing and diversifying minerals revenue dependence while incentivizing investment and strengthening regulatory oversight; enhancing internal revenue generation by all three tiers of government an bolstering savings in the Excess Crude Account (ECA) to create a buffer against revenue volatility.
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May 29th Tragedy: Flash flood kills 21and wash away 50 houses in two Niger Communities

From Dan Amasingha, Minna
Tragedy struck in two Niger Communities as flash accompanied by heavy down pour that lasted for hours led to heavy flood that claimed 21 lives and washed away over 50 houses. The heavy down pour which started late on Wednesday, the 28th of May lasted till mid Thursday leaving behind tells of woes and deaths.
Niger State emergency management agency confirmed the deadly flood in a statement by the Director General Abdullahi Baba Ara on Thursday evening. ” NSEMA is in receipt of report of a deadly flood disaster that ravaged two communities of Tiffin maza and Anguwan hausawa in Mokwa town of Mokwa LGA” He disclosed that, the incidence occurred last night (Wednesday)during a torrential downpour of very high intensity that lasted several hours.According to him, the surging flood water submerged and washed away over 50 residential houses with their occupants.Tge Agency Director General disclosed that, ” in response the Agency, in collaboration with Mokwa LG Authority, local divers and very brave volunteers are conducting search and rescue operation to rescue survivors and recover corpses .” At present 3 servivors ( a woman and her 2 children) are receiving treatment for wounds and shock at Mokwa general, while 21 corpses have so far been recovered of those who sadly loss their lives in the incidence” Alhaji Abdullahi Baba Ara said over 10 persons are still missing as search and rescue operation is still ongoing.COVER
My Administration, Policies Are Working, Says Tinubu

By Andrew Oota , Abuja
President Bola Tinubu has declared that his administration’s economic reforms and policies were working for the progress of Nigeria and the good of all.
The President also stated that his administration would make life better for Nigerians acknowledging the sacrifices made so far, with a conviction that his vision for the country is clear.
Tinubu said this in a statement issued to commemorate the second anniversary of his administration on Thursday, May 29, 2025.
He stated that his administration had stabilised the nation’s economy, noting that “we are now better positioned for growth and prepared to withstand global shocks.
”He pointed out that , “Today, I proudly affirm that our economic reforms are working. We are on course to build a greater, more economically stable nation.
“Under our Renewed Hope Agenda, our administration pledged to tackle economic instability, improve security nationwide, reduce corruption, reform governance, and lift our people out of poverty.
“While implementing the reforms necessary to strengthen our economy and deliver shared prosperity, we have remained honest by acknowledging some of the difficulties experienced by our compatriots and families.
”We do not take your patience for granted. I must restate that the only alternative to the reforms our administration initiated was a fiscal crisis that would have bred runaway inflation, external debt default, crippling fuel shortages, a plunging naira, and an economy in a free-fall.
“Despite the bump in the cost of living, we have made undeniable progress.”
The president further stated that he acknowledged the sacrifices many Nigerians have been making for the development of the country, adding: “Our journey is not over, but our direction is clear. So is our resolve to tackle emerging challenges.
“By the Grace of God, we are confident that the worst is behind us. The real impact of our governance objectives is beginning to take hold.
“The future is bright, and together, we will build a stronger, more inclusive Nigeria that we can all be proud of.” He said.
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Seven Months After, Reps Pass Harmonized Tax Reform Bills

By Eze Okechukwu and Ubong Ukpong,Abuja
House of Representatives on Wednesday passed the tax reform bills transmitted to the National Assembly by President Bola Tinubu in October 2024.The bills were passed at a session presided over by the Deputy Speaker, Benjamin Kalu.
The development followed the adoption of the harmonised versions of the reform bills by both the House and the Senate. At plenary on Wednesday, the House of Representatives considered the report of the conference committee, which harmonised the bills. The Chairman of the House Committee on Finance, Abiodun Faleke (APC, Lagos), who headed the House team to the conference committee, presented the conference report to the House for consideration.According to him, the Conference Committee met and agreed on all areas of difference in the version passed by both chambers of the National Assembly. He stated that there were 45 areas of difference in the Nigeria Tax Administration Bill, 12 areas of difference in the Nigeria Revenue Service Bill, 9 areas of difference in the Joint Revenue Board Bill and 46 areas of difference in the Nigeria Tax Bill, adding that all grey areas were resolved ahead of the passage. While the conference committee agreed to retain the Senate version in some of the clauses, they also retained the House version in some others, making amendments in a few others. The conference committee agreed to the imposition of a 4 per cent development levy on the assessable profit of all companies chargeable to tax under Chapters 2 and 3, except small companies and non-resident companies. They also agreed that the levy shall be collected by the Nigeria Revenue Service and paid into a special account created for the same purpose.In the sharing formula, the committee agreed that 50 per cent of the tax would go to the Tertiary Education Trust Fund, 15 per cent to the Education Loan Fund (up from 3 per cent agreed by the House), and 8 per cent to the Nigeria Information Technology Development Fund.
Similarly, the National Agency for Science and Engineering Infrastructure is to get 8 per cent (down from 10 per cent earlier agreed by both chambers), the National Board for Technology Incubation is to get 4 per cent from the fund, defence and security infrastructure is to get 10 per cent while cyber security fund will get 5 per cent.
Meanwhile, the Social Security Fund, Nigeria Police Trust Fund, and National Sports Development Fund were excluded from the list of beneficiaries passed by the House of Representatives.
The committee also adopted a new clause 158, which imposes a 5 per cent surcharge on chargeable fossil fuel products provided or produced in Nigeria and shall be collected at the time a chargeable transaction occurs.
The controversial Value Added Tax sharing formula was not part of the areas of disagreement between the two legislative chambers.
In his remarks, Kalu said the parliament has played its part in ensuring that the country moves forward, even as he urged the executive arm of government to do its part.
In his contribution, a member of the House representing Gwoza/Damboa/Chibok Federal Constituency, Borno State, Ahmed Jaha warned those who will clean up the bill not to tamper with any of the clauses passed, saying “Where the T is not crossed, don’t cross it, where the I is not dotted, don’t do it. We have the original copies of the bills as passed before and after harmonisation.
“We have had cases in the past where those in charge of cleaning up the bills tamper with it and at the end of the day, the President will withhold assent. That must not happen.”
That said, the All Progressives Congress lawmaker singled out Speaker Tajudeen Abbas and Deputy Speaker, Benjamin Kalu for praise, saying, “I want to thank your leadership for the role you played in making these bills a success. I also want to thank the Chairman of the Committee, Abiodun Faleke. He showed that he is truly a good elder. He provided a lot of training for some of us, and I want to say that this is the way to go.”
In a related development, the Senate has approved the Rivers State 2025 budget for a second reading.
The budget, which totals ₦1,480,662,592,442 trillion, was presented by the Senate Leader, Senator Michael Opeyemi Bamidele, on Wednesday.
Bamidele explained that the Senate had assumed legislative powers over Rivers State following the declaration of a State of Emergency in the state.
Supporting the motion, Senator Solomon Adeola Olamilekan emphasised the urgency of passing the budget to ensure that the people of Rivers State feel the impact of governance.
He said, “Mr. President, I am not exactly sure under what title this document is categorised, but from what I can see, it pertains to a budget under the state of emergency. I hereby support its passage for second reading so that the people of Rivers can feel the presence of government.”
With no opposition to the motion, the Senate President, Godswill Akpabio, conducted a voice vote and referred the budget to the Ad-hoc Committee on Overseeing the Rivers State of Emergency for further legislative action.
Senate announced that the Sole Administrator of Rivers State, Vice Admiral Ibok-Ete Ekwe Ibas, along with other key state officials, would appear before a Joint National Assembly Ad-hoc Committee to defend the state’s 2025 budget. NASS holds commemorate 25 years of democracy, holds joint session,
Also,President of the Senate, Senator Godswill Akpabio, has announced that a joint session of the National Assembly will be held on June 12 to commemorate Democracy Day.
He made the announcement after the upper chamber reconvened for plenary on Wednesday.
Akpabio revealed that the Senate leader, Senator Opeyemi Bamidele, the Senate minority leader, Senator Abba Moro as well as the Chairman senate services, Senator Sunday Karimi will meet with their counterparts in the House of Representatives to finalize the programme of activities and coordinate arrangements for the special session.