FAAC: How FG, states, LGCs shared N8tr in 2018




  • FG got N3.4tr, States/LGs N4.5tr
  • Richest: Delta N285bn, Lagos N260bn, Kano N188bn
  • Poorest: Kwara N81bn, Ebonyi, Gombe N76bn each

A new report by the Economic Confidential has disclosed that the Federal Government, 36 states and the 774 local government councils in Nigeria shared a total sum of N8 trillion from the Federation Account in 2018 in spite of the shut-ins in several oil installations during the period.

The allocations were made after the monthly meetings of the Federation Account Allocation Committee (FAAC) in 2018. The current sources of revenue flow into the Federation Account are collected by agencies of the Federal Government with little or no contributions from state or local government council.

The current sources of revenue flow into the Federation Account are revenue collected by agencies of the Federal Government with little or no contributions from states and local government councils.

While the Federal Government and its agencies under the administration of President Muhammadu Buhari received a total sum of N3.48 trillion the other tiers, States and local government councils shared a total sum of N4.5 trillion in 2018.

Meanwhile, in 2017 the Federal Government and its agencies had received N2.5 trillion while the other tiers of government shared N3.3 trillion. 

In its annual detailed investigative report with a table of figures, the Economic Confidential disclosed that among the state recipients, Delta is ranked first as the highest recipient of gross allocation with a total sum of N285 billion in the twelve months of 2018.

It is followed by Akwa State N272 billion, Lagos N260 billion, Rivers N237 billion and Bayelsa N192 billion. The five states cornered over a quarter (25%) of the total allocation for the States and local government councils in Nigeria in 2018.

Among the 10 highest recipients from the Federation Account in 2018 included Kano State which got N183 billion, Katsina N138 billion, Oyo N131 billion, Kaduna N131 billion and Borno State N122 billion.

The report further disclosed that Edo and Ondo which are oil-producing states got N112 billion and N108 billion respectively while another state in the South-South, Cross River State merely received N91 billion.

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 revenue generating agencies to the Federation Account are the Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS) and Department of Petroleum Resources (DPR).

The revenues come from Export Crude Sales, Domestic Crude Sales, LPG, NLNG, Petroleum Profit Tax (PPT), Company Income Tax (CIT), Withholding Tax (WHT), Import Duty, Excise Duty, Royalties, Gas Flared and miscellaneous oil revenue such as Oil Prospecting License and oil Mining Licence.

The Economic Confidential which is circulated at the monthly meeting Federation Account Allocation Committee (FAAC) has been publishing the monthly Federation Account Allocation figures since January 2007. 

It also publishes the Annual States Viability Index (ASVI) which measures the likely survival of States on their Internally Generated Revenue (IGR) without relying on Federally Collected Revenues, especially from the Federation Account. 

Federation Account Allocation 2018: https://economicconfidential.com/wp-content/uploads/2019/04/FAAC-January-to-December-2018-Economic-Confidential.pdf
Read more and previous FAAC Tables of Figures: https://economicconfidential.com/2019/04/faac-allocations-2018/

NOTE: Economic Confidential is a sister publication of PRNigeria

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