October 2, 2020

FG, others share N5.3trn in 8 months

FAAC shares N760b to FG, states, LGs

By Elizabeth Adegbesan

The Federal Government, 36 states and the 774 local governments of the federation as well revenue generating agencies of the Federal Government shared a total of N5.3 trillion as statutory allocation in eight months, from January to August 2020.

The decline in the total allocation compared to N5.4 trillion shared during the period in 2019, suggests a fall in the country’s revenue due to the slowdown in global economic activities as a result of the Coronavirus pandemic.

Vanguard analysis of the Federation Account Allocation Committee (FAAC) monthly disbursement report by the National Bureau of Statistics (NBS) revealed that the Federal Government received the largest share of N2.1 trillion representing a decline of 22 percent when compared to N2.7 trillion received in 2019.

The 36 states received N1.2 trillion representing a fall of 20 percent when compared to N1.5 trillion received in the corresponding period of 2019, while the 774 local governments received N1.1 trillion same as received in 2019. The remaining N700 billion was shared as 13 percent derivative among oil producing states and revenue generating agencies.

The three tiers of government received the highest allocation of N780.93 billion in April 2020, while the lowest allocation of N547.31 billion was received in June 2020.

READ ALSO: Nigeria earned N28.6trn from oil, non-oil sources in 5 years

In its latest FAAC’s disbursement report, NBS noted that the three tiers of government received N676.41 billion in August. The report stated: “The FAAC disbursed the sum of N676.41billion to the three tiers of government in August 2020 from the revenue generated in July 2020.

“The amount disbursed comprised of N543.79 billion from the Statutory Account and N132.62 billion from Valued Added Tax (VAT).

“Federal Government received a total of N273.19 billion, States received a total of N190.85 billion and Local Governments received N142.76 billion. The sum of N42.85 billion was shared among the oil producing states as 13 percent derivation fund.

“Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N5.65 billion, N10.21billion and N4.22 billion respectively as cost of revenue collections.

“Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N210.94 billion was disbursed to the FGN consolidated revenue account; N4.83 billion shared as share of derivation and ecology; N2.42 billion as stabilization fund; N8.12 billion for the development of natural resources; and N6.03 billion to the Federal Capital Territory (FCT) Abuja.”