FG, states, LGs shared N7.7tn from federation account in 11 months

From January to November last year, the three tiers of the government received a total allocation of N7.71tn from the federation account, investigations have revealed.

An analysis of the Federation Account Allocation Committee’s distribution by our correspondent in Abuja showed that unlike in 2017 when the revenue allocation to the three tiers of government was low, the 2018 fiscal period was very rewarding despite oil production shutdown.

The committee, headed by the Minister of Finance, Mrs Zainab Ahmed, is made up of commissioners of finance from the 36 states of the federation; the Accountant General of the Federation, Mr Ahmed Idris; and representatives from the Nigerian National Petroleum Corporation.

Others are representatives from the Federal Inland Revenue Service; the Nigeria Customs Service; Revenue Mobilisation, Allocation and Fiscal Commission as well as the Central Bank of Nigeria.

The federation account is currently being managed on a legal framework that allows funds to be shared under three major components, which are statutory allocation, Value Added Tax distribution, and allocation made under the derivation principle.

Under statutory allocation, the Federal Government gets 52.68 per cent of the revenue shared; states, 26.72 per cent; and local governments, 20.60 per cent.

The framework also provides that VAT revenue be shared thus: FG, 15 per cent; states, 50 per cent; and LGs, 35 per cent.

Similarly, an extra allocation is given to the nine oil-producing states based on the 13 per cent derivation principle.

A breakdown of the N7.71tn allocation showed that the three tiers of government shared N655.17bn in January 2018.

Out of the January amount, the Federal Government, after deducting the cost of collections to the revenue-generating agencies, received N278.73bn; states, N175.54bn; local government, N132.48. The sum of N51.74bn was paid to the oil-producing states based on the 13 per cent derivation principle.

In February, allocation to the three tiers of government dropped to N635.55bn out of which the Federal Government’s share was N263.28bn; states, N172.87bn; and local governments, N129.98bn.

In addition, the oil-producing states also received N52.04bn.

However, in March, allocation increased to N647.39bn and from it, the Federal Government got N270.81bn; state governments, N173.76bn; and local governments, N130.91bn. The oil-producing states received additional N57.49bn.

For April, the sum of N638.09bn was shared with the Federal Government receiving N268.27bn; states got N170.13bn, while the local government councils got N128.31bn. Similarly, the oil producing states got the sum of N55.98bn.

In May, the FAAC committee distributed the sum of N701.02bn among the three tiers of government. The Federal Government received N289.04bn; states, N181.96bn; local government councils, N137.32bn; while oil-producing states got additional N49.75bn.

For June, the sum of N668.89bn was shared, with the Federal Government receiving N282.22bn, states, N181.96bn; local government councils, N136.49bn. In addition, oil-producing states got the sum of N53.07bn based on the derivation principle.

July witnessed the highest allocation for the year with the sum of N821.86bn from which the Federal Government received N315bn. The states got N194.51bn, the local government councils got N147.05bn, and the oil-producing states got N42.85bn.

For August, the committee distributed the sum of N714.81bn, with the Federal Government, state and local government receiving N298.28bn, N183.77bn and N138.96bn respectively.

Also, N49.78bn was given to the oil-producing states as extra allocation based on 13 per cent derivation principle.

In September, the amount shared by FAAC was N741.84bn. The Federal Government received N291.48bn; states got N194.45bn, the local government got N146.01bn and derivation to oil-producing states was N53.05bn.

For October, the sum of N698.71bn was shared while November had a total of N788.13bn allocated to the three tiers of government.

Amehnews Live Traffic

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *