The Nigeria Labour Congress (NLC) has lamented that the 36 governors in Nigeria have deliberately neglected the people despite the increase in revenue shared with them by the Federation Account Allocation Committee in 2024....Read Full Article >>➤
Prof. Theophilus Ndubuaku, the deputy president of the NLC Political Commission, raised concerns following President Bola Tinubu’s comment that governors are the major drivers of development in Nigeria.
The NLC has lamented the neglect of the masses by the 36 governors even after their allocations increased in multiple folds following the removal of the fuel subsidy.
How much states got from FG in 2024?
According to The Punch, the statutory allocations from the Federal Account Allocation Committee (FAAC) to the three tiers of government in Nigeria witnessed a significant increase in 2024. The total allocation rose by N4.99 trillion to N15.12 trillion, representing a 49.24 per cent increase from the N10.14 trillion disbursed in 2023.
The 36 state governments received the highest allocation of N5.22 trillion, accounting for 34.5 per cent of the total allocation. This amount represents a 45.5 per cent increase from the N3.585 trillion received in 2023.
Local government areas received N4.97 trillion, while the central government got N4.95 trillion. Notably, the allocation to local governments increased by 96 per cent, while the central government’s allocation rose by 25.6 per cent.
What is the current revenue-sharing formula
The revenue-sharing formula currently in place allocates 52.68 per cent of the revenue to the Federal Government, 26.72 per cent to states, and 20.60 per cent to local governments. However, for Value Added Tax (VAT), the Federal Government receives 15 per cent of distributed funds, states get 50 per cent, and local government councils receive 35 per cent.
Proposed tax bills aim to adjust this allocation, conceding 55 per cent to state governments, 35 per cent to local government councils, and 10% to the Federal Government.
The FAAC disbursements are crucial for the development of various levels of government and enabling states and local governments to meet their obligations. The funds are generated from revenues such as oil exports, taxes, and statutory allocations. ...Read Full Article >>➤
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