Federation Account: How FG, States, Lgs Shared N7.23trn In 2020

The Federal Government of Nigeria,
States and Local Government
Councils shared N7.23trillion from
the Federation Account in 2020.

The fund comprises collections by
revenue generators, including
Nigeria Customs Service (NCS)
Department of Petroleum
Resources (DPR) and Federal
Inland Revenue Service (FIRS).

Every month, the Federation
Account Allocation Committee
(FAAC), chaired by the Minister of
State for Finance, meets with
State Commissioners of Finance
for disbursement.

In 2020, while the Federal
Government and its agencies
received N3.04trillion, States and
LGs got N4.18trillion.

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The N4.18trillion is N232billion
lesser than the N4.4trillion the two
tiers received in 2019.

In a report by Economic
Confidential, Lagos is ranked the
highest recipient with a sum of N299billion in twelve months.

Delta received N247billion, Akwa
Ibom N212billion, Rivers N198billion
and Kano N174billion. The five
states got 25 percent of total
allocation.

Other states in top 10 were
Bayelsa N152billion, Katsina
N130billion, Oyo N127billion, Kaduna
N124billion and Borno N115billion.

The lowest recipients were Gombe
N72billion, Ebonyi N73billion,
Nasarawa N73billion, Ekiti N74billion
and Kwara N77billion.

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Edo, Ondo, Cross River, all oil-
producing states, got N99billion,
N97billion and N86billion
respectively.

Factors that influence allocations to
states and local councils include
population, derivation, land mass,
revenue generation drive, school
enrolments, health facilities, water
supply, among others.

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