Government Allocates N1.51 Trillion to 36 States in Second Quarter of 2023

By Fatima M. Sambo.

In a recent report released by the Nigerian Extractive Industries Transparency Initiative (NEITI), it has been revealed that the 36 states in the federation received a total of N1.51 trillion, accounting for 34.5 percent of the N4.37 trillion revenue shared among the three tiers of government from January to June, 2023.

The NEITI report outlines the distribution of funds, highlighting that the states received N817.79 billion from the N2.32 trillion total distributable allocation in the first quarter, followed by N688.2 billion from the N2.04 trillion allocation in the second quarter.

Furthermore, the report stated that nine oil-producing states, namely Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers, received additional allocations as part of the 13 percent derivation revenue. These additional funds brought their total receipts to approximately N869.09 billion.

Analyzing the allocation on a state-by-state basis, Delta State emerged as the top recipient, receiving N102.79 billion in the second quarter. This was followed by Akwa Ibom and Rivers states, which received N70.01 billion and N69.73 billion respectively. On the other end of the spectrum, Ekiti, Ebonyi, and Nasarawa states received the lowest allocations of N16.95 billion, N16.84 billion, and N16.71 billion respectively.

The NEITI report also shed light on debt repayment statistics, revealing that Lagos State had the highest deduction from its allocation among the 36 states in order to service pending debts acquired through foreign loans and contractual obligations such as irrevocable standing payment orders (ISPO) and other liabilities.

The figures demonstrate that Lagos State had a total deduction of N9 billion from its allocation in the second quarter of 2023, making it the highest among all the states. Following closely behind were Delta (N6.76 billion), Ogun (N6.10 billion), Kaduna (N5.63 billion), and Osun (N5.6 billion).

Conversely, Enugu, Kebbi, Nasarawa, Anambra, and Jigawa states recorded the lowest deductions for debt repayment, with amounts ranging from N1.88 billion to N1.16 billion.

The NEITI report provides valuable insights into the distribution of funds among the states and the efforts being made to address debt obligations. These findings are crucial for understanding the financial landscape and ensuring transparency in resource allocation across Nigeria.

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