Data released by the National Bureau of Statistics revealed a decline in total disbursements from the Federation Account in 2020. The Federation Account Allocation Committee (FAAC) disbursed N4.79 trillion1 to the federal and state governments in 2020, whereas, a total sum of N5.4 trillion was disbursed in the preceding year 2019, representing a 13% decline. Further disaggregation shows that the federal and state governments received N2.49 trillion and N2.3 trillion respectively in the period under review. Delta and Akwa-Ibom states were the biggest beneficiaries, receiving the highest allocations of N186.83 billion and N146.27 billion respectively, while Osun and Cross River states received the least allocations of N30.63 billion and N32.89 billion respectively. The overall decrease in disbursements is an indication of a dip in total revenue sourced during the year. The COVID-19 pandemic negatively affected global oil sales, which is the country’s main source of revenue. This therefore calls for increased commitment and intervention programs to diversify the economy, and reduce the country’s vulnerability to oil price shocks. Domestic revenue mobilization efforts also need to be intensified.