Nasarawa State, located in Nigeria’s North-Central region, is known for its proximity to the Federal Capital Territory (FCT) and its vast deposits of solid minerals. However, despite its strategic location and natural wealth, Nasarawa is often one of the least funded states in terms of federal allocations. In 2024, the state made bold strides in public finance by significantly increasing its budget, focusing heavily on capital investments to foster economic development and improve public service delivery.
This post explores everything you need to know about Nasarawa State’s allocation in 2024—from federal receipts and internally generated revenue (IGR) to how funds are spent and the long-term implications for development.
Understanding Federal Allocations (FAAC)
In Nigeria, the Federation Account Allocation Committee (FAAC) is responsible for distributing revenue from the central pool—generated through oil sales, VAT, import duties, and taxes—among the federal, state, and local governments. The current FAAC sharing formula allocates:
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52.68% to the Federal Government
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26.72% to States
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20.60% to Local Governments
States also receive a separate share from the VAT pool. These allocations form the bedrock of state revenues, especially for states with limited internal revenue like Nasarawa.
Nasarawa’s Federal Allocations in 2024
Despite being resource-rich, Nasarawa State received the lowest total FAAC allocation of all 36 Nigerian states in 2024. According to the Nigeria Extractive Industries Transparency Initiative (NEITI), the state’s total receipts stood at ₦108.3 billion, including VAT and statutory allocations.
Here’s a quick breakdown:
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Statutory Allocation + VAT: ₦58.16 billion
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Total 2024 FAAC Receipts: ₦108.3 billion
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Q2 2024 FAAC Share: ₦24.74 billion (ranking in the bottom three nationally)
Nasarawa’s relatively small population and economic size, as well as its lack of oil-producing status, contribute to its low allocation figures.
Nasarawa’s 2024 Budget: A Leap in Ambition
Governor Abdullahi Sule presented the 2024 “Budget of Renewed Commitment” with an initial proposal of ₦199.88 billion. However, in November 2024, the state assembly approved a supplementary budget of ₦156.69 billion, bringing the total 2024 budget to ₦356.57 billion—the highest in the state's history.
Capital vs. Recurrent Expenditure
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Capital Expenditure: ₦220 billion (62%)
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Recurrent Expenditure: ₦136.57 billion (38%)
This ratio places Nasarawa among the most investment-forward states in Nigeria, with a strong emphasis on infrastructure and development projects.
Internally Generated Revenue (IGR) Performance
While federal allocations dominate state revenue, Nasarawa has also worked to boost its internally generated revenue (IGR). According to the National Bureau of Statistics:
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2022 IGR: ₦10.29 billion
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2023 IGR: ₦13.2 billion
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2024 Estimate (Unofficial Sources): ₦23.49 billion
Although IGR still contributes less than 15% of the total revenue, recent reforms show promise.
Key IGR Reforms
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E-Tax Collection Platform: Integration of all MDAs into a single Treasury Single Account (TSA)
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Land Use Charges: Digitized GIS-based property enumeration to enhance collections
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Unified Market Fees: Implementation of harmonized levies in all 13 local government areas
Sectoral Allocation Breakdown
Nasarawa’s 2024 budget channels a significant portion of funds into four main sectors: infrastructure, education, healthcare, and agriculture.
Infrastructure – ₦60 Billion
The state aims to:
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Dualize the Keffi–Akwanga–Lafia Road
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Execute Karu and Lafia urban renewal programs
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Rehabilitate rural access roads
Education – ₦24 Billion
Key projects include:
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Renovation of over 500 public primary schools
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Recruitment of qualified teachers
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Introduction of digital learning tools in classrooms
Healthcare – ₦18 Billion
Healthcare initiatives involve:
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Construction and equipping of 40 new Primary Healthcare Centres (PHCs)
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Upgrading Dalhatu Araf Specialist Hospital
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Expansion of the Nasarawa Health Insurance Scheme
Agriculture – ₦15 Billion
Major agricultural goals:
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Subsidized distribution of fertilizers and inputs
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Implementation of the Green Agro Program
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Participation in World Bank-supported Fadama IV
Q3 2024 Budget Performance Report
As of Q3 2024:
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Total Revenue Realized: ₦96.95 billion (48.5% of the initial budget)
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Capital Budget Performance: 34%
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Personnel Costs Utilized: 73%
Some ministries overperformed, such as:
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Ministry of Education: 72.9% personnel budget utilization
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Agricultural Development Programme: 357% revenue performance due to NG-CARES funds
However, many capital projects faced procurement delays and inflation-related cost escalations.
Challenges in Budget Implementation
Despite the increase in budget size and capital investments, Nasarawa faces several hurdles:
1. Inflation and Currency Depreciation
The average exchange rate hovered around ₦750 to the dollar in 2024, increasing the cost of imported materials and delaying construction projects.
2. Procurement Bottlenecks
Only 58% of capital projects obtained required approvals by Q3 2024, delaying implementation timelines.
3. Security Issues
Recurring farmer-herder clashes, particularly in Doma and Awe LGAs, have diverted emergency funds away from planned infrastructure and agricultural projects.
4. Low IGR Elasticity
Despite efforts to widen the tax net, over 70% of small and medium-sized enterprises in the state operate informally, limiting revenue gains.
Comparative Analysis with Other States
Compared to its peers:
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Per Capita Allocation: ₦32,800 (based on 3.3 million population)—significantly lower than oil-rich states like Rivers or Delta
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IGR Intensity: One of the lowest in North-Central Nigeria
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Capital Spend Ratio: 62% vs. national average of 48%
Despite the financial constraints, Nasarawa’s focus on infrastructure and social investments shows an intent to leapfrog into sustainable development.
Fiscal Sustainability and Long-Term Vision
Governor Sule’s administration is implementing new measures to ensure fiscal sustainability:
Green Bond Initiative
A ₦25 billion green bond is in development to support renewable energy projects and sustainable agriculture.
Public-Private Partnerships (PPP)
The Lafia bus terminal project is expected to be operated under a PPP model, saving ₦800 million in operational costs annually.
VAT Distribution Advocacy
The governor advocates for a VAT distribution formula that rewards collection efficiency, pushing states to boost their own tax administration systems.
2025 Budget Outlook
Early indications suggest that the 2025 budget could reach ₦382.5 billion, with increased allocations for power, agriculture, and industrial zones. Proposed flagship projects include:
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Keffi Inland Dry Port
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Gurku 40MW Solar Park
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Special Agro-Processing Zones in Doma
These projects aim to increase Nasarawa’s IGR-to-total revenue ratio to 25% by 2026.
Conclusion
Nasarawa State’s 2024 allocation story is one of ambition amidst constraint. As the lowest FAAC recipient, the state has still managed to craft a visionary, infrastructure-heavy budget. Its emphasis on education, agriculture, and healthcare shows a government prioritizing human capital alongside physical infrastructure. While challenges like inflation, insecurity, and IGR underperformance persist, policy reforms and external funding support offer hope.
Going forward, the success of Nasarawa’s fiscal strategy will hinge on its ability to translate budget figures into completed projects, meaningful services, and ultimately, improved livelihoods for its citizens.
