A new report by Economic Confidential has disclosed that the Federal Government, 36 states and the 774 local government councils in Nigeria shared a total sum of N7.23 trillion from the Federation Account in 2020.
While the Federal Government and its agencies received a total sum of N3.04 trillion, other tiers of government shared N4.18 trillion.
The shared N4.18 trillion to States and their Local Government Councils in 2020 is N232 billion lesser than the N4.4 trillion they received in the previous year of 2019.
In its annual detailed investigative report with a table of figures, Economic Confidential disclosed that among the state recipients, Lagos is ranked first as the highest recipient of gross allocation with a total sum of N299 billion in the 12 months of 2020.
It is followed by Delta State with N247 billion, Akwa Ibom N212 billion, Rivers State N198 billion and Kano State N174 billion.
The five states cornered over a quarter (25%) 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 State that got N74 billion and Kwara State N77 billion.
The report further disclosed that Edo and Ondo States, which are oil-producing states, got N99 billion and N97 billion respectively, while another state in the South South, Cross River State, 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.
The Economic Confidential, which is circulated at the monthly meeting of the Federation Account Allocation Committee, has been publishing the monthly Federation Account Allocation figures since January 2007.
It also publishes the Annual States Viability Index, which measures the survival of States on Internally Generated Revenue without relying on Federally Collected Revenues, especially from the Federation Account.
The Annual State Viability Index for 2020 will be released next week.
The magazine is a sister publication of PRNigeria, a news release syndication platform.
Please see the Breakdown of the allocations to Federal Government, States and their Local Government Councils in 2020 in the link and below:
Table of Federation Account: HowFG, States Shared N7.23tr in 2020