The Federal Government has distributed a total sum of N2.02 trillion naira to all the 774 local government areas across the country as federal allocation for 2022.
Investors King reports that local government areas in five states got N500.38bn which is 24.8 percent of the total amount.
The five states that got the largest share of the national cake are– Lagos, Kano, Oyo, Katsina, and Rivers states
Meanwhile, local government areas in Bayelsa, Gombe, Ebonyi, Nasarawa, and Ekiti received the smallest share in the bulk sum.
The breakdown of the federal allocation for last year indicated that the eight LGAs in Bayelsa received N24.03bn; the 11 LGAs in Gombe got N28.97bn; the 13 LGAs in Ebonyi got N31.73bn; the 13 in Nassarawa got N31.96bn; the 16 in Ekiti received N34.86bn; the 16 LGAs in Kwara got N37.69bn; the 14 LGAs in Zamfara obtained N38.37bn; while the 17 LGAs in Abia state got N39.33bn.
In the Federal Capital Territory, Abuja, the six local government areas therein got N39.52bn; 16 LGAs in Taraba received N40.42bn; 17 LGAs in Yobe got N41.22bn; 18 LGAs in Cross River got N41.69bn; 18 LGAs in Ondo got N43.03bn; 17 LGAs in Enugu got N43.42bn; 18 LGAs in Edo got N43.54bn; 17 LGAs in Plateau got N44.33bn; while 20 LGAs in Ogun got N45.68bn.
In Adamawa, its 21 local government areas received N49.23bn; 21 LGAs in Kogi got N49.30bn; 21 LGAs in Kebbi got N49.96bn; 21 LGAs in Anambra received N52bn; 23 LGAs in Sokoto got N55.58bn; 20 LGAs in Bauchi received N55.90bn; 23 LGAs got N57.28bn in Benue; the 25 LGAs in Delta received N57.68bn.
The Federal Allocation to the 27 local government areas in Imo was N58.25bn; In Osun, N58.42bn was given for 30 LGAs; N60.68bn for the 25 LGAs in Niger; N61.63bn for the 27 LGAs in Jigawa; N65.37bn for the 27 LGAs in Borno; N66.31bn for the 31 LGA in Akwa Ibom; N67.69bn for the 23 in Kaduna; N80.39bn for the 23 in Rivers; N81.81bn for the 34 in Katsina; N84.51bn for the 33 in Oyo; N107.29bn for the 44 in Kano; and N146.39bn for the 20 in Lagos.
The Federal Government generates revenue from taxes, oil, Nigerian Customs Service trade facilitation activities, Company Income Tax, sale of national assets, dividends from State Owned Enterprises and more sources to fund its account after which it is shared monthly among the three levels of government– Federal, state and local government.
The current sharing formula of the allocation states that the Federal Government gets 48.5 per cent, state government gets 26.72 per cent, while the Local Government received 20.6 per cent.
The state governments and local governments have however urged the Revenue Mobilisation Allocation and Fiscal Commission to increase their allocation percentages of the FG allocation.
Speaking on the subject, the National Deputy President of the Association of Local Governments of Nigeria (ALGON), Shehu Jega said local government allocations should be increased for survival so that it doesn’t go into extinction.
He added that the allocations of local governments should be well monitored and directly sent into their accounts to avert diversions.
“ALGON wishes to tell the Revenue Mobilisation, Allocation and Fiscal Commission that it has a great important role to play in rescuing local government system from extinction – extinction in the sense that local government system needs increase in the revenue sharing formula.
“After that, the allocation has to be monitored to ensure that each local government council in the country gets its allocation straight to its account,” said Jega.
