…Oyo, Delta, Niger lead in percentage increase
Fresh data from BudgIT Research has revealed a massive rise in federal allocations to Nigerian states over the past decade, with Oyo, Delta and Niger States topping the chart in gross Federation Account Allocation Committee (FAAC) growth between 2015 and 2024.
According to the report, Oyo State recorded the highest growth rate of 785.79 per cent, with its allocation jumping from N48.05 billion in 2015 to N425.60 billion in 2024.
Delta State followed closely with a 708.36 per cent increase, rising from N147.47 billion to N1.19 trillion over the same period. Niger State ranked third, recording 683.61 per cent growth, as its allocation expanded from N47.76 billion to N374.28 billion.
Other states that posted significant increases include Ekiti (680.22 per cent), Gombe (643.23 per cent), Anambra (640.98 per cent), Edo (595.55 per cent) and Bayelsa (582.73 per cent).
In contrast, somestates showed relatively modest growth compared to others. Kebbi, Kogi, Ebonyi, Ogun and Imo were among those with the lowest percentage increases, with Kebbi at 178.03 per cent, Kogi at 186.32 per cent, Ebonyi at 205.31 per cent, Ogun at 223.87 per cent, and Imo at 225.25 per cent.
Overall, the data underscores a sharp rise in total FAAC inflows to states within the decade, largely driven by higher oil receipts, exchange rate adjustments, and expanded fiscal transfers.
The report, based on 2024 audited financial statements of states and BudgIT’s analysis, highlights the growing dependence of subnational governments on federal allocations despite ongoing calls for fiscal diversification and improved internally generated revenue (IGR).
Economic analysts note that while the jump in FAAC disbursements reflects broader macroeconomic changes, it also underscores inflationary pressures and currency depreciation over the years.
BudgIT urged state governments to channel the increased revenues into productive investments, infrastructure, and public services to ensure sustainable development and fiscal resilience.
