Yes, hold your governor to account but don’t forget that the Federal Government still consumes 52% of our resources. 36 state governors only share 28% and 774 LGAs only share 20%. Even if states were to control all LGA funds, that would still be 48% divided among 36 governors while the Federal Government alone consumes 52%.
That’s why the Federal Government can afford to triple the number of agencies it has since the Oronsaye Report from 541 in 2012 to more than 1600 in 2026. That is why the Federal Government can even afford to have fake agencies.
Dr Abah
Replies and Responses
Respectfully Ezemuo ,
Indeed you know things but, on this the loose ends aren’t properly tied.
Saying the FG “consumes 52% of Nigeria’s resources” does not give the full picture.
Putting it simply, FAAC does not share every naira using a single formula.
For the main Federation Account pool, the formula commonly quoted is:
Federal tier= 52.68%
States = 26.72%
LGAs = 20.60%
But even the 52.68% is not all for the FG to spend directly. The FG’s direct share is 48.5%, while the rest goes to the FCT, ecology, stabilisation and natural-resource development.
Then there is VAT, which accounts for about one-third of distributable federation revenue, meaning only two-thirds are shared with the formula you mentioned.
VAT has a completely different sharing formula:
FG 10%
States 55%
LGAs. 35%
So for every ₦100 of VAT shared, ₦10 goes to the FG while ₦90 goes to states and LGAs.
#KemKem
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Kemi Patriot
Thank you, my sister. The FCT is federal government, so I don’t understand what you mean when you suggest it’s not part of the Federal Government share. The Ecological Fund is controlled by the federal government (and is alleged to be one of the most corruptly managed funds in the history of Nigeria).
But please don’t stop your helpful analysis where you did. Help us get to the conclusion. Of ALL resources that go to all tiers of government, what overall percentage does the federal government get? What percentage do the 36 states share? What percentage do the 774 LGAs get combined?
I know that you agree that all tiers of government should be held accountable. I just want to be sure what the balance should be.
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Dr Abah responds
I agree that governors should be held accountable.
Respectfully, the 52% claim ignores VAT and EMTL where States & LGs receive 90% combined and the FG only 10%.
It also overlooks the 13% derivation paid to oil producing states before the main split.
So saying the FG “consumes 52% of our resources” does not fully reflect how revenue is actually shared.
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Nimsy Hermes
😂 So, what percentage of resources from the Federation Account does the Federal Government consume, please?
Dr.Joe Abah OON
😂 😂 😊 I see where you hung the ball, like Declan Rice!
FG gets about 52.68% of the Federation Account that is the statutory pool, after 13% derivation.
VAT and EMTL aren’t Federation Account money. They are kept in separate pools (10% FG, 90% states and LGs), just shared at the same FAAC meeting.
Nimsy Hermes
Thank You
Dr Joe Abah OON
Dr Abah is a former DG of the Bureau for Public Service Reforms
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