Federal allocations to each of the 36 states have increased by more than 62 percent in the last two years, the Presidency has said.
A document made available to the Nigerian Tribune at the weekend by the authorities explained that the astronomical rise in the allocation freed up resources for states to develop.
The boost in the distributable revenues accruing to the federal purse, according to the Presidency, is made possible by the fiscal and monetary policy of the current federal administration. It stated that President Bola Tinubu opened up the nation’s fiscal space with increased internally generated revenue from the Federal Inland Revenue Service to the tune of N21.3 trillion and the Nigerian Customs Service.
The subsisting formula for federal allocation is 52.68% to the Federal Government, 26.72% to the states, and 20.60% to local governments. A 13% derivation fund is also allocated to oil-producing states.
A whopping sum of N5.38 trillion was shared by the Federation Account Allocation Committee (FAAC) among the 36 states and the Federal Capital Territory (FCT) between January and December 2024. This figure marked an increase of about N1.46 trillion over the N3.92 trillion received by the states and the FCT in 2023.
Giving a breakdown of what it described as the fiscal and monetary gains under the administration of President Tinubu in two years, the Presidency stated that while external reserves rose by $6 billion to $40.19 billion, boosting confidence and stability, the total surplus hit $13.17 billion, showing strong export performance. It noted that while gas exports rose by 48.3 percent to $8.66 billion, FX reserves was up by $364 million in two weeks before the Monetary Policy Committee’s meeting held in April this year.
“Under President Tinubu’s leadership, Nigeria is turning the corner. From stabilizing the naira and curbing inflation, to reducing debt burdens and expanding access to education and health, the administration is delivering bold reforms with real results.
“With improved security, regional inclusion, anti-corruption action, and institutional rebuilding, Nigeria’s comeback story is not yet complete — but it is firmly underway,” the Presidency reemphasised. Under the theme: Policy outcomes and benefits to the people in the broad agenda of the administration, the Presidency maintained that a total of N200 billion was released as loans to farmers and agro-processors.
It added that a large scale of grains and fertilizers was released to cushion food inflation.
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