Crude Oil Theft: NEITI calls for review of legislation, use of technologyBy Alice Ekpang

The Nigeria Extractive Industries Transparency Initiative, NEITI, Tuesday, stated that the Federal Government, states, local government areas and other statutory recipients received N3.879 trillion from the Federation Accounts Allocation Committee, FAAC, in the first half of 2020.

NEITI, in a statement on its Quarterly Review reports, signed by its Director, Communications and Advocacy, Dr. Ogbonnaya Orji, stated that of the total, N1.53 trillion went to the Federal Government, while the states got N1.29 trillion and the 774 local government areas received N771.34 billion.

NEITI noted that the N1.53 trillion received by the Federal Government in first half 2020 was 4.28 per cent lower than the N1.599 trillion it got in the first half of 2019 and 7.36 per cent lower than the N1.652 trillion it received in the first half of 2018.

It said: “The story is the same for the states and local government areas. For states, a total of N1.298 trillion was disbursed in the first half of 2020. This was 2.8 per cent lower than the N1.35 trillion disbursed in the first half of 2019, and 5.6 per cent lower than the N1.375 trillion disbursed in the first half of 2020.

“For local government areas, the 2020 first half disbursements were 2.64 per cent and 3.04 per cent lower than the corresponding disbursements for 2019 and 2018 respectively.

“The disbursements in second quarter of 2020 were 1.09 per cent higher than total disbursements in second quarter 2019 and 3.66 per cent lower than the one for second quarter 2018.

“FAAC disbursements in the second quarter of 2020 stood at N1.934 trillion. This was made up of N739.2 billion to the Federal Government, N629.3 billion to state governments, and N375.4 billion to the 774 local government areas.

“Federation Accounts Allocation Committee (FAAC) shared N3.879 trillion to the Federal Government, states, local government areas and other statutory recipients in the first half of 2020.”

On total net FAAC disbursements and deductions for states for the first half of 2020, NEITI said the report observed wide disparities, noting that for instance, Osun State had the lowest net disbursement of N13.13 billion, while Delta State had the highest net disbursement of N100.81 billion.

READ ALSO: FG, states, LGs received N1.95trn from FAAC in first quarter

This, it said, implies that Delta State received seven times the disbursement that Osun State received.

It said: “According to the report total net disbursements received by Delta State, N100.81 billion, was higher than the combined total net disbursements of N99.47 billion received by six states – Osun, Cross River, Plateau, Ogun, Gombe and Ekiti.

“Also, the combined total net disbursements of N321.29 billion received by the four highest receiving states of Delta, Akwa Ibom, Rivers, and Bayelsa were higher than the combined total net disbursements of N314.08 billion received by 16 states – Osun, Cross River, Plateau, Ogun, Gombe, Ekiti,  Zamfara, Kwara, Nassarawa, Ebonyi, Taraba, Benue, Adamawa, Ondo, Bauchi, and Abia. While Lagos State had the highest deductions, Yobe State had the lowest.”

NEITI pointed out that the total FAAC disbursements in the second quarter of 2020 was slightly lower than the N1.945 trillion disbursed in the first quarter of 2020, adding that this aligned with the projections made in the previous issue of the NEITI Quarterly Review which projected lower FAAC disbursement in the second quarter.

NEITI attributed the 0.55 per cent decrease in second quarter 2020 to a couple of factors, namely: rebound in oil prices in the second quarter as a result of ease of lockdowns by countries across the world and the adjustment of the official exchange rate by the CBN from N307 to a dollar, to N360 to a dollar in March, resulting in higher naira disbursements.

The report also revealed that FAAC disbursements in the first quarter and second quarter of 2020 were very volatile, with the difference in total disbursements between months ranging between N58.9 billion and N199.3 billion

Vanguard

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.