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Akinwande Soji-Ojo & Emmanuel Adeleke
Following the removal of fuel subsidy by President Bola Tinubu in May 2023, allocation to the 36 states of the federation have increased, with some states recording over 100% increment in their allocation.
The Federation Accounts Allocation Committee (FAAC)Â disburses allocation from the revenues generated into the federation account, which comprise multiple accounts specific to a sector or business type.
The revenues shared at FAAC meetings by the federal, state, and local governments are earnings from oil exports, taxes, and other statutory allocation.
A breakdown of the data sourced from monthly reports of the FAAC for June 2022 to May 2023, and June 2023 to June 2024, showed that total allocation to the 36 states in the last 12 months, ending June 2024, was N4,988,309,948,887.6, from N2,797,537,166,432.5 the states collected in the previous year, ending May 2023.
The removal of fuel subsidy by Tinubu has been attributed as the source of increased allocation to the 36 states, with money saved on subsidy payment added to the allocation of the respective states.
The data showed that Delta State was the topmost beneficiary of subsidy removal as the state’s allocation rose to N475,493,100,785.15 in the last 12 months, ending June 2024, from the N292,592,121,677.27 it received in the previous year, ending May 2013. This represents an increase of 62.5% in the state’s allocation.
Delta State was followed by Rivers and Akwa Ibom, with the states receiving N377,045,852,652.75 (54.9%) and N321,669,701,378.26 (27.9%) as allocation in the last 12 months, ending June 2024.
Lagos State leads the states in the South West zone with N280,522,749, 813.72, compared to the N151, 628,957,090.7 the state received from June 2022 to May 2023.
Four states–Benue, Gombe, Kwara and Taraba–saw their allocation increased by over 100% between June 2023 and June 2024.
See the table below to see allocation to the 36 states for June 2022 to May 2023 and June 2023 to June 2024, as well as percentage increase and average monthly increment in allocations: Â
