Nigeria's government revenue rises to N3.473 trillion in Q2 2024: NEITI Report

Nigeria's federal, state and local governments have received a total of N3.473 trillion in the second quarter of 2024, as per the Nigeria Extractive Industries Transparency Initiative (NEITI).

This marked an increase of N46.77 billion or 1.42%, compared to the N3.426 trillion received in the first quarter of 2024. The NEITI Quarterly Report for the second quarter revealed that the increase was due to steady revenue coming into the Federation Account from various sources.

The report revealed that out of the N3.473 trillion distributed in the second quarter, the federal government received N1.102 trillion, which was 33.35% of the total. The 36 states got N1.337 trillion, or 40.47%, and the 774 local government councils received N864.98 billion, or 26.18%.

Furthermore, N169.26 billion was given to nine oil-producing states, as their share of mineral revenues. Delta, Bayelsa and Rivers States were the biggest beneficiaries of this arrangement.

Comparing the first and second quarters of 2024, the federal government's allocation decreased by N41.44 billion, or 3.76%, while the states' allocation increased by N58.13 billion, or 4.29%.

NEITI's Executive Secretary Ogbonnaya Orji presented the report in Abuja, highlighting how these disclosures help improve public accountability in managing government finances.

"Our Quarterly Review aims to shed light on the revenue sources for the Federation Account and identify the factors influencing these figures over time. The objective is to enhance awareness and foster transparency in the management of public resources," Orji said, Premium Times reported.

The report noted that the main contributors to the Federation Account are the Nigeria Upstream Petroleum Regulatory Commission, the Federal Inland Revenue Service and the Nigeria Customs Service.

Their contributions include oil and gas royalties, petroleum profit tax, company income tax, value-added tax (VAT) and import and excise duties. NEITI also noted that monthly allocations varied, rising from N1.094 trillion in January 2024 to N1.098 trillion in February, but then slightly falling to N1.065 trillion in March.

NEITI recommended states take advantage of ongoing reforms in the solid minerals sector and work towards diversifying revenue sources. The Central Bank of Nigeria has been urged to take stronger actions to stabilize the exchange rate and reduce fluctuations in Federation Account remittances.

Furthermore, NEITI advised the Revenue Mobilisation Allocation and Fiscal Commission and the Office of the Accountant General of the Federation to improve transparency, especially regarding payments of derivation arrears and debt repayment refunds.

Earlier this month, Bill Gates, co-chair of the Bill and Melinda Gates Foundation, expressed concern over Nigeria's economic stagnation, highlighting that the country's debt has now exceeded 50% of its gross domestic product for the first time since 2001.