The Federal Government of Nigeria gives some amounts of money – called the federal allocation – to the 36 states of the federation every month. States can decide to use this allocation to pay salaries, execute capital projects, or do some other things.
This money that is being shared accrues to the Federal Government from national revenue sources and state remittances. There is a sharing formula of federal allocation to states in Nigeria and it is maintained by the Federal Account Allocation Committee (FAAC).
Now based on FAAC sharing formula, which state gets the highest allocation in Nigeria? This article has been written to give you a precise and detailed answer to this question, which you will find below.
Which State Has the Highest Allocation in Nigeria?
According to the data obtained for 2020 and 2021, Delta State has the highest federal allocation in Nigeria. It was reported that Delta State got N130.57 billion and N141.93 billion federal allocation for 2020 and 2021 respectively. This places Delta State above Akwa-Ibom State and Rivers State which are also states that earn some of the highest federal allocations in Nigeria.
Delta State is located in the South-South geopolitical zone of Nigeria. The state got its name from the Niger Delta – a large portion of which is in the state – and was formed from the former Bendel State in August 27, 1991. Delta State is bordered on the north by Edo State, the south by Bayelsa, to the east by Anambra State and Rivers State while to the west is the Bight of Benin which spans about 160 kilometers of the state’s coastline.
Delta State has 25 Local Government Areas with an estimated population of about 5.7 million people as at 2016. The state has Asaba as its capital and Warri as its commercial nerve center. The major ethnic groups in Delta State are the Urhobos, Isokos and the Itsekiris.
Delta is the second-largest oil-producing state in the country, after Akwa-Ibom State. The state account for 21.56% of Nigeria’s oil production. One of Nigeria’s refineries and also a petrochemical plant are located in Delta State, precisely in Warri. Also, Delta State has some other natural resources such as rubber, timber, fine sand, clay, etc.
In 2021, Delta State internally generated revenue (IGR) stood at N41.93 billion, which is the third-highest among the states in Nigeria. Based on reports, Delta State got N130.57 billion and N141.93 billion as federal allocation for 2020 and 2021 respectively, making it the state which has the highest allocation in Nigeria. With its IGR and federal allocation, Delta State is regarded as one the richest states in Nigeria.
What is Nigeria federal allocation?
The Nigeria federal allocation is the allocation from the Federal Government that goes to the 36 states of the federation and the FCT, generated from national revenue sources and remittances from states.
This allocation, which is of varying amounts, is shared on a monthly basis between the Federal Government and the states. Federal Account Allocation Committee (FAAC) is the body responsible for the sharing formula and the disbursement.
List of states with the highest allocation in Nigeria
Below are the list of the top 5 states with the highest allocation in Nigeria as at 2021:
- Delta State (N141.93 billion)
- Akwa-Ibom State (N91.16 billion)
- Bayelsa State (N87.23 billion)
- Rivers State (N83.12 billion)
- Edo State (N15.48 billion)
What is internally generated revenue?
Internally generated revenue (IGR) is the revenue that a state or local government generates within the area of its jurisdiction in a month or even a year.
Conclusion
Delta State has been the state with the highest federal allocation in Nigeria. The state leads other states in Nigeria by collecting the highest federal allocation of N130.57 billion and N141.93 billion in 2020 and 2021 respectively. Akwa-Ibom State, Rivers State, and Bayelsa State are the next top states with the highest federal allocation within this period.