New Telegraph

FG, states, LGs shared N7.23trn in 2020

…allocation to states drops by N232bn


The three tiers of governments comprising Federal Government, 36 states and 774 local government councils collectively shared a total sum of N7.23trillion from the Federation Account in 2020.


Of the amount, the Federal Government received the highest allocation of the sum of N3.04 trillion while the states and local government councils collectively shared N4.18 trillion, a report by Economic Confidential obtained on Sunday confirmed the amount.


The N4.18 trillion shared to states and their local government councils in 2020 was N232billion less than the N4.4 trillion they received in the previous year of 2019.


Analysis of the allocation received by states ranked Lagos State as the highest recipient of gross allocation with a total sum of N299 billion in the 12 months of 2020. It was followed by Delta State, N247 billion, Akwa Ibom, N212 billion, Rivers State, N198b billion and Kano State, N174 billion. The five states cornered over a quarter (25 per cent) of the total allocation for the states and local government councils in Nigeria.


Among the 10 highest recipients from the Federation Account are Bayelsa State, which got N152 billion; followed by Katsina State N130 billion, Oyo State N127 billion, Kaduna State N124 billion and Borno State N115 billion.


The lowest recipients are Gombe, Ebonyi and Nasarawa states that got N72 billion, N73 billion and N73 billion respectively.


They are followed by Ekiti that got N74 billion and Kwara  N77 billion. The report further disclosed that Edo and Ondo, which are oil-producing states got N99 billion and N97 billion respectively, while another state in the South-South, Cross River, received N86 billion in one year.


The Economic Confidential, Nigeria’s intelligence economic magazine, gathered that factors that influence allocations to states and local government councils from the Federation Account include Population, Derivation, Landmass, Terrain, Revenue Effort, School Enrolments, Health Facilities, Water Supply and Equality of the beneficiaries.

Read Previous

Osinbajo: FG to collect tax on profits made by tech., digital firms

Read Next

Excitement as Wigwe emerges African Banker-of-the-Year

Leave a Reply

Your email address will not be published. Required fields are marked *