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FAAC: Three Tiers of Government Share ₦2.550 Trillion as June 2026 Revenue; States and LGAs Receive Over ₦1.36 Trillion

  FAAC: Three Tiers of Government Share ₦2.550 Trillion as June 2026 Revenue; States and LGAs Receive Over ₦1.36 Trillion The Federation Account Allocation Committee (FAAC) has distributed a total of ₦2.551 trillion as Federation Account revenue for June 2026 to the Federal Government, the 36 state governments, and the 774 Local Government Councils across Nigeria. The allocation was approved during the FAAC meeting held in July 2026 in Abuja and chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy. The meeting was attended by the Accountant-General of the Federation, State Commissioners of Finance, and other members of the committee. ( FMINFO ) Breakdown of the Revenue Distribution The total distributable revenue of ₦2.551 trillion comprised: ₦1.810 trillion from Statutory Revenue. ₦740.724 billion from Value Added Tax (VAT). ( FMINFO ) Statutory Revenue Allocation From the statutory revenue: Federal Government: ₦849.366 billion State Govern...

Report to the Senate Committee on the Need to Create Edo State for Economic Diversity


This report outlines the rationale and benefits of creating a new state from Edo State to enhance economic diversity and regional development. The proposed new state would encompass Orhionmwon, Uhunmwonde, and Esan Central local government areas (LGAs). This initiative aims to address the unique economic potentials and administrative needs of these regions, ensuring balanced development and improved governance.

Background

Edo State, located in the southern region of Nigeria, is rich in cultural heritage and economic resources. However, the current administrative structure has posed challenges in harnessing these resources effectively. The creation of a new state from Edo would provide an opportunity to focus on local economic strengths, improve governance, and foster development.

 Economic Rationale for Creating a New State

1. Resource Management: The proposed new state would have a more focused approach to managing its natural and human resources. Orhionmwon, Uhunmwonde, and Esan Central are endowed with arable land, minerals, and a vibrant workforce that can be better harnessed under a dedicated administrative structure.
  
2. Agricultural Development: These regions are primarily agrarian, with significant potential for agricultural expansion. Creating a new state would allow for targeted policies and investments in agriculture, boosting food production and agro-industries.
  
3. Industrialization: The new state could develop industrial zones and attract investments in manufacturing and processing industries. This would create jobs, stimulate local economies, and reduce dependence on federal allocations.

4. Infrastructure Development: A new state would prioritize infrastructure development tailored to the specific needs of Orhionmwon, Uhunmwonde, and Esan Central. Improved roads, healthcare facilities, educational institutions, and utilities would enhance the quality of life and economic activities.

5. Tourism Potential: The rich cultural heritage and historical sites in these areas offer substantial tourism potential. Focused development and promotion of tourism can generate revenue and create employment opportunities.

Proposed Local Governments to Form the New State

The proposed new state would be carved out from the following local government areas:

1. Orhionmwon LGA: Known for its agricultural potential, including rubber plantations and other cash crops. The area also has oil and gas reserves that can be better managed within a smaller administrative unit.

2. Uhunmwonde LGA: With a mix of agricultural and industrial activities, Uhunmwonde can benefit from targeted economic policies and infrastructure development.

3. Esan Central LGA: Rich in cultural heritage and with significant agricultural activities, Esan Central would thrive with focused governance and development strategies.

 Benefits of Creating the New State

1. Administrative Efficiency: A smaller administrative unit would facilitate better governance, quicker decision-making, and more effective implementation of policies.

2. Economic Diversification: Focused development strategies tailored to the strengths of Orhionmwon, Uhunmwonde, and Esan Central would diversify the economy and reduce over-reliance on a single economic sector.

3. Enhanced Service Delivery: Improved access to public services, healthcare, and education would enhance the quality of life for residents.

4. Political Inclusion: The creation of a new state would give the people of these LGAs a stronger political voice and representation, addressing feelings of marginalization.

5. Balanced Development: Ensuring that development efforts are spread evenly across the region, reducing regional disparities and fostering social cohesion.

Challenges and Mitigation Strategies

1. Economic Viability: Ensuring that the new state can generate sufficient revenue to sustain itself. This can be mitigated by leveraging natural resources, promoting industrialization, and developing tourism.

2. Political Resistance: Gaining consensus from stakeholders in the existing Edo State. Engaging in inclusive dialogue and demonstrating the benefits of the new state can help overcome resistance.

3. Infrastructure Needs: Addressing the immediate infrastructure requirements. Phased development plans and seeking partnerships with private investors can help meet these needs.

Conclusion

The creation of a new state from Orhionmwon, Uhunmwonde, and Esan Central LGAs in Edo State offers a promising avenue for economic diversification and regional development. By focusing on the unique strengths and needs of these areas, the new state would foster balanced development, improve governance, and enhance the quality of life for its residents. This proposal, if approved, would mark a significant step towards achieving equitable and sustainable development in Nigeria.

Recommendations

1. Conduct a Comprehensive Feasibility Study: To assess the economic and administrative viability of the proposed new state.
  
2. Engage Stakeholders: Conduct public consultations with residents, traditional rulers, and political leaders to gain broad-based support.

3. Develop a Strategic Development Plan: Outline clear economic, social, and infrastructure development goals for the new state.

4. Seek Legislative Approval: Work with the National Assembly and state legislatures to amend the constitution accordingly.

5. Implement Phased Development: Gradually develop infrastructure and administrative structures to ensure smooth transition and sustainability.

By addressing these considerations, the creation of a new state from Edo State can be a catalyst for economic growth and development, benefiting both the new state and Nigeria as a whole.

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