The Federal Government of Nigeria, States and Local Government Councils shared N7.23trillion from the Federation Account in 2020.

The fund comprises collections by revenue generators, including Nigeria Customs Service (NCS) Department of Petroleum Resources (DPR) and Federal Inland Revenue Service (FIRS).

Every month, the Federation Account Allocation Committee (FAAC), chaired by the Minister of State for Finance, meets with State Commissioners of Finance for disbursement.

In 2020, while the Federal Government and its agencies received N3.04trillion, States and LGs got N4.18trillion.

The N4.18trillion is N232billion lesser than the N4.4trillion the two tiers received in 2019.

In a report by Economic Confidential, Lagos is ranked the highest recipient with a sum of N299billion in twelve months.

Delta received N247billion, Akwa Ibom N212billion, Rivers N198billion and Kano N174billion. The five states got 25 percent of total allocation.

Other states in top 10 were Bayelsa N152billion, Katsina N130billion, Oyo N127billion, Kaduna N124billion and Borno N115billion.

The lowest recipients were Gombe N72billion, Ebonyi N73billion, Nasarawa N73billion, Ekiti N74billion and Kwara N77billion.

Edo, Ondo, Cross River, all oil-producing states, got N99billion, N97billion and N86billion respectively.

Factors that influence allocations to states and local councils include population, derivation, land mass, revenue generation drive, school enrolments, health facilities, water supply, among others.


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