In June 2024, Ogun, the Gateway State received a total of #6.34 billion from the Federal Account Allocation Committee (FAAC) for revenue generated in May 2024, after deducting #2.8 billion from the allocated gross of #9.41 billion. An additional #6.37 billion was allocated to the state’s 20 Local Government Areas.
Breaking down the #6.34 billion disbursed to the state:
#5.25 billion from VAT
#2.82 billion from Exchange Gain
#228.28 million from Electronic Money Transfer Levy
#737.72 million from Statutory Allocation
#98.46 million as the State’s share of the Ecology Fund
Deductions of #2.80 billion included external debt payments, contractual obligations, and other charges.
This brings Ogun State’s total FAAC receipts for the first half of 2024 to #40 billion for the state and #38.64 billion for its local governments – all paid into the state’s treasury.
These funds are critical for fulfilling government responsibilities and fostering development.
From June 2023 to May 2024, the state received #75.48 billion, marking a 56.24% increase from the #48.31 billion received in the preceding period from June 2022 to May 2023.
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Despite this significant increase in FAAC allocation, and in internally generated revenue (IGR) which increases from N50 billion in 2020 to nearly N150 billion in 2023, making it the third highest in Nigeria, Ogun State still grapples with severe infrastructure deficits, particularly its poorly maintained roads making it the worst in the Southwest. Furthermore, progress in education and health sectors remains minimal.
This underscores the urgent need for transparent governance and accountability in resource allocation, prompting residents to question the utilization of public funds.
Managing these resources prudently is crucial to improving infrastructure and enhancing the quality of life for Ogun State residents amid its economic growth aspirations.
For more details on FAAC allocations to other states and local governments, visit:
