Data from the Federation Account Allocation Committee revealed that states and local governments received a total of N2.59tn from the federation account in the first half of 2023, indicating a significant 27.62% rise compared to the N2.03tn received during the corresponding period in 2022.

The three tiers of government collectively shared N4.54tn in revenue, marking a 13.12% increase from the N4.01tn available in the same period the previous year.

During the six months, the 36 states of the federation received N1.49tn, while the 774 local government areas received N1.09tn.

The allocation to the states included N209.59bn from the 13% derivation fund, distributed among Rivers, Akwa Ibom, Delta, Edo, Abia, Ondo, Imo, Bayelsa, and Lagos.

Despite the increase in federal allocation, the World Bank noted that high inflation had negatively impacted the real value of the revenue increase for most states.

Many states faced challenges due to reducing revenue, high inflation rates, and depreciation in their economies.

In the first quarter of 2023, about 25 states experienced a revenue shortage, with internally generated revenue dropping by 3.07% quarter-on-quarter.

This indicates a continued reliance on the Federal Government for financial support.