Delta, Akwa-Ibom, and Rivers states received highest share of the N1.51 trillion granted to states by the Federal government in the first half of this year.
This is according to a recent study by the Nigeria Extractive Industries Transparency Initiative (NEITI).
The states received about N817.79 billion from the total distributable allocations of N2.32 trillion in the first quarter, and N688.2 billion from the N2.04 trillion allotted in the second quarter, according to NEITI.
According to the study, the entire allocation decreased by 12% in the second quarter, resulting in a 15.8% decline in the states’ contribution, which fell from N817.8 billion to N688.2 billion in the first quarter.
Despite the drop, NEITI stated that when the 13% derivation revenue was factored in, state allocations exceeded the federal government’s share.
Furthermore, the nine oil-producing states received additional allocations as part of their 13% derivation revenue share, increasing their total receipts to nearly N869.09 billion.
When compared to the similar period in 2022, allocations to state governments in 2023 increased by around 11.2% to N1.42 trillion, up from N1.26 trillion.
According to the report, Delta state earned the greatest allocation in the second quarter of 2023, totaling N102.79 billion, followed by Akwa Ibom and Rivers states, which received N70.01 billion and N69.73 billion, respectively.
Ekiti, Ebonyi, and Nasarawa States, on the other hand, earned the lowest allocations of N16.95 billion, N16.84 billion, and N16.71 billion, respectively.
In terms of debt payments, the report noted that Lagos State had the biggest deductions from its allocation, owing to foreign loans and contractual obligations such as Irrevocable Standing Payment Orders (ISPO) and other liabilities.
Lagos State recorded a total deduction of N9 billion in the second quarter of 2023, followed by Delta (N6.76 billion), Ogun (N6.10 billion), Kaduna (N5.63 billion), and Osun (N5.6 billion).
Enugu, Kebbi, Nasarawa, Anambra, and Jigawa States, on the other hand, had the lowest deductions, with N1.88 billion, N1.51 billion, N1.45 billion, N1.29 billion, and N1.16 billion, respectively.
Delta State had the largest net allocation of N96.03 billion after all deductions, followed by Rivers (N66.81 billion), Akwa Ibom (N64.81 billion), Lagos (N51.61 billion), and Bayelsa (N51.53 billion).
However, the survey stated that Plateau, Ogun, and Osun were the states most affected by debt deductions, resulting in negative revenue receipts in the second quarter.
Plateau State fell from 21st to 31st place among the 36 states, while Ogun moved from 28th to 35th and Osun from 32nd to 36th.
The research expressed worry over the high ratio of debt deductions from allocations in Ogun, Osun, and Cross River States, with deductions exceeding 30%. In contrast, Rivers, Jigawa, and Kebbi states displayed significant sustainability capacity.