FG, states, LGs shared N8trn in 2018

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FG, states, LGs shared N8trn in 2018
 
 
  • NBS: FAAC disburses N1.92trn to govts in 3 months

 

Four out of the 36 states of the federation received the highest allocations from the Federation Account Allocation Committee (FAAC) in 2018. They cornered over a quarter (25%) of the total allocation for the states and local government councils during the period.

A report by Economic Confidential disclosed that a total of N8 trillion was disbursed, out of which Federal Government got N3.4 trillion while states and the 774 local governments received N4.5 trillion, in spite of the shut-ins in several oil installations during the period.

 

The amount is about N2.2 trillion more than the N5.8 trillion disbursed in 2017 where N2.5 trillion   was received by the Federal Government and its agencies while the other tiers of government shared N3.3 trillion.

 

According to the breakdown, the highest allocation of N285 billion went to Delta State, followed by Akwa Ibom with N272 billion; Lagos, N260 billion, and Rivers N237 billion.

Among the 10 highest recipients included Bayelsa, which got N192 billion; Kano, N183 billion; Katsina, N138 billion; Oyo N131 billion; Kaduna, N131 billion, and Borno N122 billion.

 

The report further disclosed that Edo and Ondo, which are oil-producing states, got N112 billion and N108 billion respectively while Cross River received N91 billion.

Other states at the bottom are Kwara, N81.798 billion; Ekiti, N78.845 billion; Nasarawa = N78.6 billion; Ebonyi, N76.98 billion and Gombe, N76.838 billion.

The allocations were made after the monthly meetings of FAAC in 2018. The current sources of revenue flow into the Federation Account are collected by agencies of the Federal Government with little or no contributions from state or local government councils.

The report gathered that factors that influence allocations to states and local government councils from the Federation Account include population, derivation, landmass, terrain, revenue effort, school enrolments, health facilities, water supply and equality of the beneficiaries.

The revenue generating agencies to the Federation Account are the Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS) and Department of Petroleum Resources (DPR).

The revenues come from Export Crude Sales, Domestic Crude Sales, LPG, NLNG, Petroleum Profit Tax (PPT), Company Income Tax (CIT), Withholding Tax (WHT), Import Duty, Excise Duty, Royalties, Gas Flared and miscellaneous oil revenue such as Oil Prospecting License and Oil Mining License.

Meanwhile, the FAAC has disbursed N1.92 trillion to three tiers of government in first quarter of 2019, according to the National Bureau of Statistics (NBS).

The NBS said this in FACC monthly allocation for January, February and March, 2019 Disbursement statistics published on its website and analysed by the News Agency of Nigeria (NAN) yesterday in Abuja.

The bureau said FAAC disbursed N649.19 billion to the three tiers of government in January, 2019; N660.37 billion in February while the sum of N619.86 billion was distributed to the three tiers in March.

Out of the N1.92 trillion, the Federal Government got N803.18 billion in the quarter; states received N530.14 billion while the local governments received N398.43 billion.

The breakdown showed that the Federal Government received N270.17 billion in January, N275.33 billion in February and N257.68 billion in March.

States received N178.04 billion in January, N182.17 billion and N169.93 in March while the local governments received N133.83 billion in January, N136.88 billion and N127.72 billion in March.

In addition, the report said the amount disbursed in January comprised N547.46 billion from the Statutory Account, N100.76 billion from Valued Added Tax (VAT) and N976.53 million exchange gain differences.

The sum of N45.36 billion was shared among the oil producing states as 13 per cent derivation fund in the month.

Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.69 billion, N4.04 billion and N8.04 billion respectively as cost of revenue collections.

Further breakdown of revenue allocation distribution to the Federal Government revealed that the sum of N216.57 billion was disbursed to the Federal Government’s consolidated revenue account.

 

In addition, N4.81 billion was disbursed as share of derivation and ecology and N2.43 billion as stabilisation fund.

 

Also, N8.15 billion was shared for the development of natural resources and N5.82 billion to the Federal Capital Territory (FCT), Abuja.

For February, the report said the amount disbursed comprised N497.12 billion from the Statutory Account; N104.47 billion from VAT and N8.12 billion as excess charges recovered.

According to the report, the sum of N50 billion was distributed as FOREX Equalisation Fund and N654.70 million as exchange gain differences.

The sum of N48.49 billion was shared among the oil producing states as 13 per cent derivation fund in February.

Revenue generating agencies such as Customs Service, FIRS and DPR received N5.66 billion, N7.62 billion and N4.07 billion as cost of revenue collections.

Further breakdown of revenue allocation distribution to the Federal Government revealed that the sum of N221.33 billion was disbursed to the Federal Government consolidated revenue account.

In addition, N4.94 billion was disbursed as share of derivation and ecology and N2.47 billion as stabilisation fund.

Also, N8.30 billion was shared for the development of natural resources and N5.90 billion to the Federal Capital Territory (FCT) Abuja.

 

In March, the report said the amount disbursed comprised N474.42 billion from the Statutory Account, N96.39 billion from VAT, N4.02 billion as excess bank charges recovered.

According to the report, N44.17 billon was distributed as FOREX Equalisation Fund and N858.46 million as exchange gain differences.

 

The sum of N50.95 billion was shared among the oil producing states as 13 per cent derivation fund in the month.

 

 

NewTelegraph

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