The Federation Accounts Allocation Committee (FAAC) disbursed an unprecedented N15.26 trillion to the federal, state, and local governments in 2024, marking a 43% increase compared to previous years.

The Nigeria Extractive Industries Transparency Initiative (NEITI) revealed this in its latest FAAC Quarterly Review, released in Abuja. The agency attributed the rise in allocations to the federal government’s fiscal reforms, particularly the removal of fuel subsidies and adjustments to foreign exchange policies, which have significantly boosted oil revenue remittances.

NEITI Executive Secretary Dr Orji Ogbonnaya Orji explained that the report assesses the sustainability of borrowing by the federal and state governments and the implications of resource dependence, particularly for states receiving the 13% derivation revenue from oil, gas, and solid minerals.

Orji noted that the surge in revenue distribution reflects positive fiscal management, though it also raises concerns about the long-term economic sustainability of subnational governments relying heavily on FAAC allocations.

The findings are expected to inform discussions on Nigeria’s financial stability and economic planning in the coming months.