- Dangote donates 80,000 bags of rice to Lagos residents
The Nigeria Extractive Industries Transparency Initiative has disclosed that the Federation Accounts Allocation Committee distributed a record N15.26 trillion to federal, state, and local governments in 2024, a historic high in income distribution.
The latest NEITI FAAC Quarterly Review, released on Tuesday in Abuja, attributed this 43% increase in allocations to major fiscal reforms, particularly the removal of fuel subsidies and foreign exchange rate adjustments, which significantly boosted oil revenue remittances.
The report highlighted significant disparities in revenue allocation among states: Six states (Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano, each received over N200 billion, collectively accounting for 33% of total allocations to all states).
The six lowest-receiving states: Yobe, Gombe, Kwara, Ekiti, Ebonyi, and Nasarawa—shared just 11.5% (N1.75trn) of total allocations.
NEITI further disclosed that Lagos received the highest allocation (N531.1bn), followed by Delta (N450.4bn) and Rivers (N349.9bn). Conversely, Nasarawa received the least (N108.3bn), followed by Ebonyi (N110bn) and Ekiti (N111.9bn).
The financial divide was stark, with the top four states: Lagos, Delta, Rivers, and Akwa Ibom receiving a combined N1.49trn, which was three times more than the total received by the bottom four states: Kwara, Ekiti, Ebonyi, and Nasarawa (N442.4bn).
A breakdown of the N15.26trn disbursement showed: Federal Government (N4.95trn), State Governments (N5.81trn), and Local Governments (N3.77trn).
State governments witnessed the greatest percentage rise of 62%, growing from N3.58 trillion in 2023 to N5.81 trillion in 2024, while local governments saw a 47% increase. The Federal Government’s allocation increased by 24%, from N3.99 trillion in 2023 to N4.95 trillion in 2024.
The report credited the increase in FAAC disbursements to the Federal Government’s fiscal policies, particularly fuel subsidy removal (implemented in mid-2023), Exchange rate adjustments, which boosted naira-denominated mineral revenues by over 400%.
NEITI Executive Secretary, Orji Ogbonnaya Orji, who announced the report’s release at the NEITI House in Abuja, stated that the analysis was conducted against the backdrop of major fiscal reforms that reshaped the revenue landscape.
As stated by Orji, the study examined the viability of governmental debt, especially in oil-abundant regions that gain from 13% derivation income.
“The evaluation concentrated on states generating revenue from crude oil, since solid minerals have yet to achieve their expected performance despite having considerable capabilities,” he remarked.
The report also flagged concerns about rising debt obligations. Total deductions for foreign debts and contractual obligations amounted to N800bn, representing 12.3% of total allocations to the 36 states.
At N164.7 billion, Lagos State had the largest debt deduction, making up over 20% of all deductions. The next largest debt deductions were N51.2 billion from Kaduna, N38.6 billion from Rivers, and N37.2 billion from Bauchi.
Concerns regarding the debt-to-revenue ratios and general fiscal health of a number of heavily indebted states that placed in the lowest half of FAAC allocations were raised by NEITI.
NEITI urged the government to sustain policy reforms to encourage long-term revenue growth and economic stability. The agency emphasized the need for targeted measures to manage inflation, reduce poverty, and stimulate job creation.
“While we support these fiscal reforms with credible information and data, it is crucial for governments at all levels to take innovative actions to mitigate the economic and social risks associated with these transitions,” the report stated.
NEITI identified important risks such as: Increasing inflation, higher costs of debt payments, Uncertainty in finances for states relying on oil.
The report stated that even though FAAC payments have hit record highs, it is still a major challenge for Nigeria’s economy to handle revenue stability and debt levels.
Dangote donates 80,000 bags of rice to Lagos residents
Meanwhile, the Aliko Dangote Foundation has flagged off the distribution of 80,000 10kg bags of rice to the vulnerable in Lagos state.
President of Dangote Group and Chairman of the foundation, Aliko Dangote, who was represented by an Executive Director, in the Group, Hajiya, Marya Dangote noted that the gesture is part of the over one million 10kg bags of rice that would be distributed to reach one million vulnerable people in the 774 local government areas of the country.
Speaking at the flag off in Alausa, Dangote, said the distribution of the 80,000 bags of 10kg rice is another demonstration of the foundation’s commitment to upholding the values of compassion and solidarity that are at the core of humanity.
Noting that the distribution of the rice is in addition to the daily distribution of thousands of loaves of bread in Lagos, Dangote stressed that with the initiative, the foundation aspires to ameliorate some of the burdens faced by vulnerable communities across Lagos State.
In his remarks, Governor of Lagos State, Babajide Sanwo-Olu, who was represented by the Lagos State Deputy Governor, Obafemi Hamzat, applauded the many initiatives of Dangote to ameliorate the sufferings of Nigerians, while praising him for showing compassion to the needy in the society.
Hamzat, who received the ADF delegate led by its Trustee, Hajiya Marya Aliko Dangote and Managing Director of the Foundation, Mrs. Zouera Youssoufou, on behalf of Governor Babajide Sanwo-Olu, expressed gratitude for the consistency of the foundation in spreading love and charity across Lagosians, which he described as one of the importance of Ramadan and Lent season.
Sanwo-Olu said the gesture of distribution of 80,000 bags of 10kg rice shows that the leadership of the Foundation prioritize the welfare of the people beyond the pursuit of profit and accumulation of wealth.
The Governor said, “Aliko Dangote is a Nigerian that has chosen to be different. You have choices but you have made the right one which is caring for the vulnerable. I appreciate Mr. Aliko Dangote for extending his kind gestures to the people at the bottom of the pyramid and we are grateful for supporting us in government. There is a lot of global disruption in different parts of the world, and it is a tough time to be in a position of leadership.”
While encouraging other wealthy Nigerians to emulate Dangote, the Governor said the distribution of the rice would support the initiative of the state in addressing the effects of the economic hardship.
“This is a special month of fasting by both Christians and Muslims as the Ramadan and Lent season fall in the month of March. One of the best ways to show the essence of this season is through giving to the needy and that is what the ADF has shown.
“In Lagos State, we also have a robust food initiative programme for farmers and all Lagosians with the Ounje Eko food in all local government areas of the state where the state government subsidies 10 percent of the food prices to buyers.
“We appreciate the kind gesture of Mr Dangote and his foundation for always showing support to Lagos State. We enjoin all well-meaning Nigerians to emulate the initiative and give back to the society.
Speaking further, Dangote noted that Lagos State holds a special place in the hearts of the Group, hosting two of its major investments – Dangote Petroleum Refinery and Dangote Fertiliser Plant.
He disclosed that the Dangote Group is also working on the nutrition agenda and has made significant strides in food fortification, investing in iodized salt and vitamin A fortified sugar. He stressed that the Group actively promotes food fortification within the Nigerian food industry and is exploring fortification methods for staples like rice and wheat and bouillon cubes to help ensure improved nutrition nationwide.
“At the heart of the Aliko Dangote Foundation lies a deep-seated belief in the importance of nutrition in human capital development. We understand that access to nutritious food is not only a basic human right but also a critical determinant of good health and well-being. By providing these modest bags of rice to those in need, we are not only looking to alleviate immediate hunger but also investing in the long-term health and prosperity of our communities,” he added.
