The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged federal and state governments to ensure transparency and accountability in the management of public funds as the Federation Accounts Allocation Committee (FAAC) disbursed N3.473 trillion to the three tiers of government in the second quarter of 2024.
The call comes amid growing concerns over the efficient utilization of government revenues, particularly in light of Nigeria’s economic challenges and the need for sustainable development. NEITI emphasized that proper monitoring and tracking of these allocations are crucial to ensuring that public funds translate into tangible benefits for citizens.
Breakdown of FAAC Disbursement
According to official figures, the total FAAC disbursement of N3.473 trillion for Q2 2024 was allocated as follows:
- Federal Government: N1.366 trillion
- State Governments: N1.131 trillion
- Local Governments: N829 billion
- Other statutory allocations (such as 13% derivation for oil-producing states): N147 billion
The disbursement represents a significant increase compared to the previous quarter, driven by higher revenue inflows from oil, non-oil sectors, and improved tax collections.
NEITI’s Call for Transparency and Oversight
NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, reiterated the agency’s commitment to promoting financial accountability in resource governance. He warned that without a structured system for tracking FAAC allocations, leakages, mismanagement, and corruption could continue to undermine Nigeria’s fiscal stability and development goals.
“Transparency in revenue generation and disbursement is critical, but even more important is how these funds are utilized. We urge all stakeholders—federal, state, and local governments—to adopt stringent tracking mechanisms to ensure funds are used for the intended purposes,” Orji stated.
Public Accountability and State-Level Implementation
While the federal government has emphasized prudent spending, many states have faced criticism over the lack of financial transparency. Some civil society organizations and economic analysts have questioned how effectively these funds are being deployed at the state and local government levels, where service delivery is most directly felt.
Experts argue that improved public finance tracking, including digital financial systems and independent audits, could help prevent misappropriation and enhance service delivery. “Citizens have a right to know how these funds are being spent. Greater financial transparency will encourage public trust and better governance,” said economic analyst Dr. Ibrahim Adebayo.
Way Forward: Strengthening Financial Oversight
As Nigeria continues to grapple with economic pressures such as inflation, debt servicing, and infrastructure deficits, stakeholders believe that ensuring accountability in public fund disbursement will be key to sustainable economic growth. NEITI has proposed:
- Enhanced Public Financial Management Systems: Adoption of real-time financial tracking tools.
- Independent Audits: Regular auditing of FAAC allocations and expenditures at all government levels.
- Stronger Legislative Oversight: Increased scrutiny from the National Assembly and state legislatures.
- Public Engagement: Encouraging civil society and media participation in budget tracking and project monitoring.
With the latest FAAC allocation, all eyes are now on how these funds will be utilized across the country. The coming months will be crucial in determining whether NEITI’s call for accountability translates into concrete action, ensuring that Nigeria’s resources are managed effectively for the benefit of its citizens.
