By Aaior K. Comfort

Dr. Orji Ogbonnaya Orji, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), has called for heightened public and civil society engagement in monitoring government revenue and expenditures. His appeal comes amid increasing revenues to various tiers of government, which are not adequately tracked by stakeholders.

Orji emphasized the importance of budget tracking and oversight in light of the steady rise in revenue. “The Quarterly Review aims to reveal the sources of funds into the Federation Account and the factors affecting revenue changes over time,” Orji stated. “Our goal is to enhance knowledge, increase awareness, and promote public accountability in financial management.”

NEITI’s Q2 2024 report reveals that the Federation Accounts Allocation Committee (FAAC) distributed N3.473 trillion to the three tiers of government. This figure represents a N46.77 billion increase (1.42%) from Q1 2024. The Federal Government received N1.1 trillion (33.35%), states received N1.337 trillion (40.47%), and local councils shared N864.98 billion (26.18%). Additionally, nine oil-producing states received N169.26 billion in derivation shares.

The report highlights a mixed trend in allocations: while the Federal Government’s share decreased by N41.44 billion (3.76%), state governments saw an increase of N58.13 billion (4.29%), and local councils experienced a rise of N30.82 billion (3.57%). Delta State received the largest allocation in Q2 2024, followed by Lagos and Rivers States.

NEITI’s report also indicates that Delta State led in oil derivation revenue, with significant shares compared to other states. However, solid minerals-producing states did not receive derivation revenue due to low sector performance.

Bauchi State had the highest debt deductions at N6.49 billion, while Lagos and Nasarawa had none. The Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Federal Inland Revenue Service (FIRS), and Nigeria Customs Service (NCS) remain key contributors to the Federation Account through various taxes and duties.

In related news, the Lagos Chamber of Commerce and Industry (LCCI) has called for improved capital expenditure performance in the 2024 budget, stressing the need for effective use of allocated funds to drive economic growth.