By Babajide Komolafe
The federal government and the other two tiers of governments have so far shared N5.068 trillion in 2010 , while the federal government overspent by N726 billion in the first nine months.
Analysis of federal revenue distributed to the three tiers of government from January to September as reported by the Central Bank of Nigeria, show that the three tiers of government shared N1.416 trillion in the first quarter, N1.437 trillion in the second quarter and N1.25 trillion in the third quarter, amounting to N4.104 trillion for the nine months.
Data from Financial Market Dealers Association of Nigeria (FMDA) reveal that the three tiers have shared N736.19 billion from October to December.
Hence the total amount of money distributed to the three tiers stands at N5.068 trillion
According to the quarterly reports of the CBN, of the N4.104 trillion shared from January to September, N919.64 billion, representing 22.4 per cent of the total, came from excess crude account, while N2.771 trillion and N412.53 billion came from the federation account and Value Added Tax (VAT).
From the N4.104 trillion shared, the federal government got N1.795 trillion, representing 43 per cent, the states got N1.085 trillion representing 26 per cent, the local governments got N822.33 billion represent 20 per cent, while the oil producing got additional N399.7 billion (9.7 per cent ) from 13 per cent derivation fund.
The federal government got N1.312 trillion from the federation account, N421.48 billion from the excess crude account and N61.88 billion from the VAT. The states got N945.7 billion from the federation account, N333.35 billion from the excess crude account, and N206.26 billion from VAT. The local governments got N513.12 billion from the federation account, N164.82 billion from excess crude oil and N144.39 billion from VAT.
However, the federal government overspent by N726.78 billion in the period under review. The federal government spent N2.883 trillion but had retained revenue of N2.156 trillion. The deficit of N726.78 billion represented 100 per cent increase compared to the N365.19 billion recorded in the corresponding period of 2009.
In the first quarter the federal government spent N877.35 billion as against retained earnings of N599.82 billion, resulting to deficit of N277.54. In the second quarter, total expenditure was N977.7 billion as against retained earnings of N827.74 billion hence a deficit of N149.96 billion. In the third quarter, retained earnings dropped to N728.87 billion while total spending rose to N1.028 trillion, hence a deficit of N299.28 billion.
It would be recalled that for the federal government recently announced a budget of N4.226 trillion for 2011 fiscal year. Recurrent expenditure is budgeted to gulp N2.48 trillion or 75 per cent while N1.72 trillion is devoted to capital expenditure.