BudgIT, a civic tech non-profit organisation, says 28 states in Nigeria relied on the Federation Account Allocation Committee (FAAC) for at least 55 percent of their total revenue in 2024.
The states were not mentioned.
In October 2024, BudgIT reported that 32 states relied on the FAAC allocation for 55 percent of their revenue in 2023.
According to BudgIT’s 2025 States of States report released on Tuesday, reliance on federal allocations remains high despite a 110.74 percent increase in states’ FAAC share from N5.4 trillion in 2023 to N11.38 trillion in 2024.
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It noted that internally generated revenue (IGR) remains within the control of the states and displays considerable variability, with Lagos averaging N541.35 billion, Ogun N92.76 billion, Delta N74.45 billion, and Kaduna N44.82 billion over the 10-year period.
“By contrast, the states with the lowest averages — Adamawa (N9.92 billion), Gombe (N9.54 billion), Taraba (N7.83 billion), Kebbi (N7.48 billion), and Yobe (N6.67 billion) — barely matched Kaduna’s average,” the organisation said.
“In terms of immediate growth between 2023 and 2024, Enugu (381.44%), Bayelsa (173.69%), Abia (129.37%), Osun (98.37%), and Kano (85.90%) led the pack.
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“Moreover, unlike 2023 — when seven states recorded negative IGR growth — only two states experienced declines in 2024, reflecting overall improvement.”
Nevertheless, BudgIT added that the proportion of IGR within total recurrent revenue declined slightly from 25.27 percent in 2023 to 20.27 percent in 2024, indicating continued dependence on federal transfers.
‘ABIA TOPPED IN CAPITAL PROJECT ALLOCATION’
BudgIT said Abia state has topped the list of states in capital project allocation, dedicating 77.05 percent of its total expenditure to capital projects.
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According to the organisation, Abia topped the chart due to Rivers’ absence, as data wasn’t collected due to the state of emergency.
Following Abia closely, BudgIT said, are Anambra, Enugu, Ebonyi, and Taraba, each allocating over 70 percent of their budgets to capital expenditure.
“Overall, 24 states spent at least half of their total expenditure on capital items, whereas Bauchi, Ekiti, Delta, Benue, Oyo, and Ogun devoted more than 60% of their budgets to personnel and overhead costs, highlighting persisting disparities in expenditure priorities,” the report noted.
“Examining the broader revenue performance, total recurrent revenue for the 35 subnationals expanded significantly, rising from N6.6 trillion in 2022 to N8.66 trillion in 2023 and further to N14.4 trillion in 2024—a growth of 66.28%, far surpassing the 28.95% increase between 2022 and 2023.
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“Lagos maintained the largest share of total recurrent revenue, though it was slightly reduced to 13.42% (approximately N1.93 trillion) from 14.32% in 2023.
“Gross FAAC transfers also recorded substantial growth over the decade. States such as Oyo (785.79%), Delta (708.36%), Niger (683.61%), Ekiti (680.22%), Gombe (643.23%), and Anambra (640.98%) experienced more than 600% growth in FAAC between 2015 and 2024, whereas states like Adamawa (230.98%), Imo (225.25%),
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“Ogun (223.87%), Ebonyi (205.31%), Kogi (186.32%), and Kebbi (178.03%) recorded growth below 300% over the same period.”
In the report, BudgIT also said Anambra came top in the 2025 fiscal performance ranking, rising from second position in the past year.
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