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Lagos Gets Largest Share of N2trn Federal Allocation to 774 LGAs in 2022



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.

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Federal Government Appeals to Electricity Union Amid Tariff Hike Tensions



power project

The Federal Government has made a direct appeal to the National Union of Electricity Employees (NUEE) amidst rising tensions over the recent hike in electricity tariffs.

The plea comes as the union continues to voice its dissatisfaction with the government’s decision to remove the subsidy on the tariff payable by Band A customers, warning of potential service withdrawal if the decision is not reversed.

In an interview with our correspondent, Adebiyi Adeyeye, the National President of the NUEE, reiterated the union’s stance against the increase, citing the impracticality of expecting their members to collect higher tariffs from customers without a proportional improvement in service.

Adeyeye emphasized the union’s concerns over the discrepancy between the promised 20 hours of daily power supply and the actual delivery, which he deemed “not feasible” due to existing infrastructural limitations.

The Federal Government, represented by Minister of Power Adebayo Adelabu, called for understanding and patience from the union. Speaking through his media aide, Bolaji Tunji, Adelabu assured that efforts were being made to improve electricity supply across the nation. He emphasized the necessity of these changes for the country’s long-term economic growth and job creation.

“We just want to appeal to the labor union to understand the context of these changes. It’s about working together to address the underlying issues within the power sector. It is not anybody’s joy that there are blackouts all the time,” Adelabu stated.

He added that the steps being taken would ultimately benefit the economy and urged the union to bear with the government during this transitional phase.

Adeyeye maintained that the union’s primary objective is to safeguard the well-being of its members, who are facing increased threats due to the tariff hike.

He stressed the need for immediate action from the government to resolve the issues, stating that the union would withdraw its services if necessary.

As the standoff continues, the public watches with interest, hoping for a resolution that will avoid disruptions to the country’s power supply and maintain a harmonious relationship between the government and electricity workers.

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Minister of Power Pledges 6,000 Megawatts Electricity Generation in Six Months



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Adebayo Adelabu has made a bold pledge to ramp up electricity generation to 6,000 megawatts (MW) within the next six months.

This announcement comes amidst ongoing efforts to tackle the longstanding issue of inadequate power supply that has plagued the country for years.

During an appearance on Channel Television’s Politics Today program, Adelabu said the government is committed to resolving the issues hindering the power sector’s efficiency.

He expressed confidence in the administration’s ability to overcome the challenges and deliver tangible results to the Nigerian populace.

Currently, Nigeria generates and transmits over 4,000MW of electricity with distribution bottlenecks being identified as a major obstacle.

Adelabu assured that steps are being taken to address these distribution challenges and ensure that the generated power reaches consumers across the country effectively.

The minister highlighted that the government has been proactive in seeking the expertise of professionals and engaging stakeholders to identify the root causes of the power sector’s problems and devise appropriate solutions.

Adelabu acknowledged the existing gap between Nigeria’s installed capacity of 13,000MW and the actual generation output, attributing it to various factors that have impeded optimal performance.

Despite these challenges, he expressed optimism that the government’s initiatives would lead to a substantial increase in electricity generation, marking a significant milestone in Nigeria’s energy sector.

Addressing concerns about the recent decline in power generation due to low gas supply, Adelabu assured Nigerians that measures are being taken to rectify the situation.

He acknowledged the impact of power outages on citizens’ daily lives and reiterated the government’s commitment to providing stable electricity supply within the stipulated timeframe.

The Minister’s assurance of achieving 6,000MW of electricity generation in the next six months comes as a ray of hope for millions of Nigerians who have long endured the consequences of inadequate power supply.

With ongoing reforms and targeted interventions, there is optimism that Nigeria’s power sector will witness a transformative change, ushering in an era of improved access to electricity for all citizens.

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Nigeria’s Economic Woes to Drag Down Sub-Saharan Growth, World Bank Forecasts



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The World Bank’s latest report on the economic outlook for Western and Central Africa has highlighted Nigeria’s sluggish economic growth as a significant factor impeding the sub-region’s overall performance.

According to the report, while economic activities in the region are expected to increase, Nigeria’s lower-than-average growth trajectory will act as a hindrance to broader economic expansion.

The report indicates that economic activity in Western and Central Africa is set to rise from 3.2 percent in 2023 to 3.7 percent in 2024 and further accelerate to 4.2 percent in 2025–2026.

However, Nigeria’s growth, projected at 3.3 percent in 2024 and 3.6 percent in 2025–2026, falls below the sub-region’s average.

The World Bank underscores the importance of macroeconomic and fiscal reforms in Nigeria, which it anticipates will gradually yield results.

It expects the oil sector to stabilize with a recovery in production and slightly lower prices, contributing to a more stable macroeconomic environment.

Despite these measures, the report emphasizes the need for structural reforms to foster higher growth rates.

In contrast, economic activities in the West African Economic and Monetary Union are projected to increase significantly, with growth rates of 5.9 percent in 2024 and 6.2 percent in 2025.

Solid performances from countries like Benin, Côte d’Ivoire, Niger, and Senegal are cited as key drivers of growth in the region.

The report also highlights the importance of monetary policy adjustments and reforms in supporting economic growth.

For instance, a more accommodative monetary policy by the Central Bank of West African States is expected to bolster private consumption in Côte d’Ivoire.

Also, investments in sectors such as agriculture, manufacturing, and telecommunications are anticipated to increase due to improvements in the business environment.

However, Nigeria continues to grapple with multidimensional poverty as highlighted by the National Bureau of Statistics.

Over half of Nigeria’s population is considered multidimensionally poor, with rural areas disproportionately affected. The World Bank underscores the need for concerted efforts to address poverty and inequality in the country.

Sub-Saharan Africa as a whole faces challenges in deepening and lengthening economic growth. Despite recent progress, growth remains volatile, and poverty rates remain high.

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