According to a new report by civic-tech organization BudgIT, at least 32 Nigerian states depended on the Federal Account Allocation Committee (FAAC) for over 55% of their total revenue in 2023.
BudgIT’s 2024 State of States report, released on Tuesday, highlights the heavy reliance of state governments on federally distributed revenue, underscoring their vulnerability to crude oil and other external economic shocks.
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The report also notes that 14 states sourced at least 70% of their total revenue from FAAC allocations, and for 34 states, federal transfers accounted for at least 62% of their recurrent revenue—Lagos and Ogun being the exceptions.
Additionally, 21 states depended on federal allocations for 80% or more of their recurrent revenue.
In 2023, the combined revenue of Nigeria’s 36 states rose substantially, increasing by 31.2% from N6.6 trillion in 2022 to N8.66 trillion.
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This growth rate surpassed the previous year’s 28.95% increase, indicating a marked improvement in fiscal performance. Lagos State alone generated N1.24 trillion, contributing 14.32% of the total revenue across all states.
The report further highlights that FAAC allocations grew by 33.19%, from N4.05 trillion in 2022 to N5.4 trillion in 2023, accounting for 65% of the combined year-on-year revenue growth across the 36 states.
2023 Rankings of States Based on Their Dependency on FAAC Allocations
1. Bayelsa: 92.17%
2. Akwa Ibom: 86.29%
3. Delta: 83.88%
4. Taraba: 81.89%
5. Niger: 80.19%
6. Benue: 79.85%
7. Anambra: 76.94%
8. Bauchi: 75.33%
9. Cross River: 74.87%
10. Nasarawa: 74.55%
11. Gombe: 72.29%
12. Enugu: 70.68%
13. Edo: 70.24%
14. Kano: 70.24%
15. Borno: 67.32%
16. Abia: 66.78%
17. Adamawa: 65.70%
18. Imo: 64.89%
19. Yobe: 64.65%
20. Katsina: 64.21%
21. Ekiti: 63.36%
22. Jigawa: 63.23%
23. Kogi: 61.29%
24. Rivers: 60.44%
25. Osun. 60.11%
26. Kaduna: 58.59%
27. Kebbi: 58.30%
28. Kwara: 57.62%
29. Ebonyi: 57.05%
30. Plateau: 56.05%
31. Sokoto: 55.67%
32. Ondo: 55.38%
33. Oyo: 46.38%
34. Zamfara: 45.04%
35. Ogun: 31.95%
36. Lagos: 26.55%
Source: BudgIT
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Rivers State should stop all capitals projects, they are funding if not completely paid for and focus on recurrent expenditures, with the internally generated revenue,with the new developments of ceasure of there monthly allocation, while waiting for supreme verdict on the 27 assembly defected members