Ekiti State, located in the southwestern region of Nigeria, has consistently demonstrated a strong commitment to fiscal responsibility and sustainable development. Governed by strategic planning and transparent budgeting, the state has utilized its allocations from the Federation Account Allocation Committee (FAAC) effectively to drive economic growth and improve public welfare.
This article explores everything you need to know about state allocation for Ekiti State, including how allocations are derived, how the budget is structured, the major sectors prioritized, and the outlook for the coming year.
Understanding State Allocation: The FAAC Framework
In Nigeria, the Federation Account Allocation Committee (FAAC) is responsible for the distribution of revenue among the federal, state, and local governments. The funds shared by FAAC are derived from various national revenue sources such as crude oil sales, Value Added Tax (VAT), company income taxes, and other federally collected revenues.
In 2024, the FAAC disbursed a total of ₦15.26 trillion to the three tiers of government, representing a 43% increase from the previous year. Ekiti State received ₦81.85 billion from this allocation, which was used to fund various infrastructural projects, health, education, and economic development programs. However, as of the third quarter, the state had accessed only ₦42.33 billion, achieving a performance rate of about 51.7%.
Despite the relatively low allocation compared to larger states, Ekiti has demonstrated prudent financial management by prioritizing key sectors that drive growth and social development. The state government, led by Governor Biodun Oyebanji, has focused on maximizing its allocations through efficient spending and strategic investments.
Breakdown of Ekiti State's 2024 Budget
Ekiti State's 2024 budget was initially set at ₦159.6 billion, but it was later revised to ₦372.15 billion to meet developmental needs and infrastructural projects. The budget prioritizes capital expenditure to stimulate growth and development in key areas:
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Capital Expenditure: ₦191.80 billion
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Personnel Costs: ₦68.05 billion
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Overhead Costs: ₦63.22 billion
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Other Expenditures: ₦49.95 billion
The capital expenditure, which accounted for more than 50% of the budget, focused primarily on infrastructure, road projects, urban renewal, and the development of educational and health facilities.
Sectoral Allocations: Prioritizing Development
Education
Ekiti State allocated a significant portion of its budget to education, emphasizing infrastructural development in schools, teacher training, and curriculum improvement. In 2024, the Ministry of Education had a budget of ₦29.84 billion, achieving an 80.4% performance rate. This funding facilitated the renovation of classrooms, provision of learning materials, and scholarships for deserving students.
The state government also partnered with international organizations to improve literacy rates and expand access to quality education in rural areas, aligning with its vision of becoming a knowledge-driven economy.
Health
The health sector received ₦6.08 billion in 2024, with a performance rate of 98.1%. This budget was channeled into upgrading healthcare facilities, equipping hospitals with modern medical tools, and implementing health insurance schemes aimed at providing affordable healthcare for residents.
The state also invested in maternal and child healthcare programs to reduce infant mortality and improve maternal health outcomes.
Infrastructure
Infrastructure development took center stage in the 2024 budget, with ₦88.37 billion allocated for road construction, bridge rehabilitation, and urban development. Major road projects, rural electrification, and the installation of water supply systems were undertaken to enhance connectivity and boost local economies.
The state government also prioritized the Abakaliki Ring Road project and other rural transformation initiatives that have significantly improved living standards in previously underserved communities.
Revenue Sources Beyond FAAC
Although FAAC allocations form the backbone of Ekiti State's budget, the government has diversified its revenue streams to enhance financial sustainability:
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Internally Generated Revenue (IGR): Ekiti has improved its IGR by strengthening tax collection, land use charges, and business permits. These measures have contributed significantly to the state's total revenue.
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Grants and Donations: Ekiti received ₦7.25 billion in grants and donations by the third quarter of 2024, helping fund critical development projects.
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Capital Development Fund (CDF): The state projected ₦41.63 billion in CDF receipts but achieved ₦11.75 billion by the end of Q3. These funds are utilized for capital projects, especially in infrastructure and community development.
Budget Performance and Implementation
Ekiti State demonstrated commendable budget performance in 2024, with a revenue performance rate of 90.6% and an expenditure rate of 87.9%. These figures highlight the government's commitment to fiscal discipline and effective public financial management.
Key achievements included:
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Renovation of over 100 schools and recruitment of qualified teachers.
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Upgrading of primary healthcare centers and implementation of health insurance schemes.
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Completion of major road projects and improvements in rural electrification.
The state also introduced a monitoring and evaluation framework to ensure transparency and accountability in project execution.
Looking Ahead: The 2025 Budget
Building on the successes of 2024, Ekiti State is set to increase its budget for 2025 with a focus on consolidating gains in infrastructure, education, and healthcare. The government plans to explore more avenues for economic diversification, boost Internally Generated Revenue (IGR), and attract private investments through public-private partnerships.
Conclusion
Ekiti State's strategic approach to managing its allocation demonstrates effective governance and foresight. Through targeted investments in education, health, and infrastructure, the state is laying a solid foundation for sustainable development. With its continuous commitment to transparency, accountability, and economic diversification, Ekiti State is poised for significant growth in the coming years.
