New data released by the National Bureau of Statistics (NBS) reveals that only Lagos, Ogun, and the Federal Capital Territory (FCT) generated more revenue than they received from the Federation Account Allocation Committee (FAAC) in 2023.
The report, shared via the Statisense X handle on Thursday, highlighted the varying contributions of state revenues to their total income.
Notably, Lagos led with 31.28% of its 2023 revenue coming from FAAC, while Ogun and the FCT recorded 45.11% and 41.48%, respectively.
States like Rivers, Edo, and Kaduna relied more heavily on FAAC, with Rivers’ contribution from the account reaching 68.6%, and Kaduna’s surpassing 73%.
Edo and Ekiti also had high FAAC dependence, at 71.43% and 77.01% respectively.
“This data underscores the growing significance of internally generated revenue (IGR) for states’ financial sustainability,” the NBS noted. “The balance between FAAC receipts and IGR is vital for long-term fiscal health.”
In total, the data shows that net FAAC combined with IGR constitutes the majority of revenue for most states, with significant disparities in dependency across the country.
