The Federation Accounts Allocation Committee (FAAC) disbursements to the federal, state, and local governments surged by 43 per cent in 2024, reflecting a major boost in government revenue inflows.

According to the latest FAAC Quarterly Review released in Abuja on Tuesday, the Nigerian Extractive Industry Transparency Initiative (NEITI) disclosed that a total of N15.26 trillion was allocated to the three tiers of government within the year under review.

NEITI’s Acting Director, Communication & Stakeholders Management, Obiageli Onuorah, described the disbursements as a historic high, noting that the allocations surpassed previous years by a remarkable margin.

Key Drivers of Revenue Growth

The report attributed the surge in FAAC disbursements to sustained fiscal reforms by the Federal Government, particularly the removal of fuel subsidies and foreign exchange rate adjustments. These policies have significantly boosted oil revenue remittances and overall government earnings.

Speaking at the official release of the report in Abuja, NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji, highlighted the impact of these reforms on national and subnational finances. He noted that the withdrawal of fuel subsidies in mid-2023 reshaped revenue distribution and affected debt repayment deductions from state allocations.

Dr Orji stated that the objective of the report was to assess the sustainability of government borrowing, the fiscal implications of resource dependence, and the economic realities confronting states benefitting from the 13% 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,” he added.

Breakdown of FAAC Allocations

According to the NEITI report, FAAC disbursements in 2024 were as follows:

Federal Government: N4.95 trillion

State Governments: N5.81 trillion

Local Governments: N3.77 trillion

Total FAAC Disbursement (Including Derivation Revenue): N15.26 trillion

State governments recorded the highest percentage increase in allocations, jumping by 62% from N3.58 trillion in 2023 to N5.81 trillion in 2024. Local government councils saw a 47% increase, while the federal government’s share rose by 24% from N3.99 trillion in 2023.

The report highlighted that FAAC allocations grew by 66.2% over three years, rising from N9.18 trillion in 2022 to N10.9 trillion in 2023 and N15.26 trillion in 2024, with the most significant leap occurring between 2023 and 2024.

Economic Risks and Challenges

Despite the revenue boost, NEITI cautioned that economic risks associated with fiscal reforms must be managed effectively. Key risks identified include:

Inflationary pressures

Possible rise in debt servicing costs

Fiscal uncertainty for oil-dependent states

The agency urged governments at all levels to adopt innovative measures to cushion the impact of these economic challenges.

State-by-State Allocation Analysis

Lagos received the highest FAAC allocation in 2024, with N531.1 billion, followed by:

Delta State: N450.4 billion

Rivers State: N349.9 billion

Conversely, the least allocations went to:

Nasarawa State: N108.3 billion

Ebonyi State: N110 billion

Ekiti State: N111.9 billion

The report also showed that six states—Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano—each received over N200 billion, collectively accounting for 33% of total state allocations. Meanwhile, the six lowest-receiving states—Yobe, Gombe, Kwara, Ekiti, Ebonyi, and Nasarawa—received only 11.5% of total allocations.

Debt Deductions Raise Fiscal Concerns

A total of N800 billion was deducted from states’ allocations for foreign debt servicing and contractual obligations, representing 12.3% of total state allocations.

Lagos State had the highest debt deduction, with N164.7 billion, followed by:

Kaduna State: N51.2 billion

Rivers State: N38.6 billion

Bauchi State: N37.2 billion

NEITI warned that many states with high debt burdens were among the lower FAAC recipients, raising concerns about debt sustainability and overall fiscal health.

With the federal and state governments increasingly reliant on oil revenue, the report emphasized the need for economic diversification, stronger financial management, and sustainable debt practices to ensure long-term fiscal stability.

Ido Local Government chapter of the All Progressives Congress (APC), Oyo State has congratulated the lawmaker representing Ibarapa East/Ido Federal Constituency, Engr. Aderemi Oseni, on his conferment as a Fellow of the Nigerian Society of Engineers (FNSE).

In a statement signed by the APC Ido LG Secretary, Engr. Ebenezer Olatiilu, the party described the recognition as a pivotal milestone in the lawmaker’s professional journey, acknowledging his contributions to engineering excellence and community development.

“This noble recognition is a testament to your unwavering dedication to the advancement of engineering practices, your exemplary leadership, and your commitment to the moral, spiritual, and political upliftment of our communities,” the statement read.

The party also highlighted Oseni’s influence in politics, noting his strategic insight and deep understanding of governance, which have earned him widespread admiration within Oyo State and beyond.

It further commended his role as Chairman of the House Committee on the Federal Roads Maintenance Agency (FERMA), stating that his leadership continues to shape progressive governance in Ido LG, his federal constituency, and Oyo State.

The party described the FNSE conferment as a blessing to the local government and Oyo State’s political landscape, praying for wisdom, good health, and strength for Oseni to continue his service with excellence.

“May this new chapter bring greater achievements and divine favour,” the statement concluded.

The Nigerian Society of Engineers (NSE) has conferred its prestigious fellowship on Engr. Aderemi Oseni and 177 other members, urging them to promote Nigerian content and uphold the highest standards of the profession.

The conferment ceremony, held on Thursday in Abuja, brought together engineers, policymakers, and industry stakeholders to celebrate excellence in the field.

Oseni, who represents Ibarapa East/Ido Federal Constituency in Oyo State and serves as the Chairman of the House Committee on Federal Roads Maintenance Agency (FERMA), has been a Member of the Nigerian Society of Engineers (MNSE) for over a decade. He is also a registered engineer with the Council for the Regulation of Engineering in Nigeria (COREN) and a member of several international professional bodies, including the London Institute of Engineers and Technicians and the Nigeria Association of Technological Engineers.

Speaking shortly after receiving the fellowship, the lawmaker dedicated the award to God and the entire engineering community, expressing his commitment to upholding the principles of the profession.

“It is another great day. I feel very excited, and it was an opportunity for me to reconnect with some of my old colleagues, people I had lost contact with for quite a while,” he said. “Having been conferred as a fellow, it is an opportunity for us to continue to do the good work that we have been doing as professionals.”

At a dinner organised in honour of the new fellows, NSE President Margaret Oguntala lauded the awardees for their dedication to innovation and nation-building. She noted that Nigerian engineers had been instrumental in advancing critical sectors, including infrastructure, energy, healthcare, and information technology. She emphasised that the recognition was not just an honour but a responsibility to uphold the integrity and standards of the profession.

Oguntala further charged the new fellows to be ambassadors of engineering excellence and to conduct themselves with dignity befitting their status. “It behoves you to carry the banner of our society high anywhere you go,” she said. “We also expect you to carry yourselves always with the dignity and comportment that this fellowship bestows on you.”

She stressed the need for engineers to play a greater role in national development, advocating for collaborations across sectors to address pressing challenges such as infrastructure deficits, poverty alleviation, and job creation. “The collective strength of engineers alongside other professionals will undoubtedly unlock the potential that will bring about the much-needed development in our country,” she said. She urged them to be torchbearers of progress, quality, and sustainability in their respective fields.

The Chairman of the NSE Board of Fellows, Maliki Kamila, highlighted the rigorous selection process for the fellowship, describing it as the highest honour any practising engineer in Nigeria can attain. “These eminent professionals are commended for having scaled through the procedures for screening and assessment, as the process has remained very thorough but fair,” he said. Despite NSE’s membership strength of about 82,000, he noted that only a select percentage had been elevated to the fellowship grade.

Jigawa State Governor, Umar Namadi, who was the Special Guest of Honour at the event, commended the NSE for its contributions to national development. Represented by Malam Bala Ibrahim, Secretary to the State Government, he urged engineers to remain committed to nation-building and to uphold the ethics of the profession in all their endeavours.