FG, states, LGs share N1.45tn in three months

A total of N1.45tn was shared by the three tiers of government from the Federation Account in the first three months of the year, figures obtained from the Federation Accounts Allocation Committee showed.

This indicated the total amount allocated under various distributable sub-heads made by the Federation Accounts.

But while the sum of N1.45tn was allocated, the FAAC monthly report showed that the country generated a total of N1.13tn within the first three months of this year.
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The FAAC committee, headed by the Minister of State for Finance, Ambassador Bashir Yuguda, is made up of commissioners for finance from the 36 states of the federation; the Accountant General of the Federation, Mr. Jonah Otunla, and representatives of the Nigerian National Petroleum Corporation.

Others are representatives of 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 – statutory allocations, 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 under this component; 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 LGAs, 35 per cent.

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

A breakdown of the allocation of N1.45tn showed that the sum of N500.13bn was shared in January, N522.05bn in February and N435.06bn in March.

Of the amount shared in January, the Federal Government received N194.3bn, representing 52.68 per cent; states, N98.5bn, representing 26.72 per cent; while the local governments got N75.9bn.

The sum of N39.4bn was allocated to the nine oil producing states based on the 13 per cent derivation principle.

For February, the FAAC document indicated that of the N522.05bn shared, the sum of N401.46bn was distributed under statutory allocation; N58.25bn under VAT revenue; N55.99bn under exchange gain while the balance of N6.33bn was shared from the refund made by the NNPC for the debt owed the federation account.

Further breakdown of the distribution made under statutory allocation for February showed that the Federal Government received the sum of N186.6bn, representing 52.68 per cent; states N96.64bn; while the local governments received the sum of N72.96bn.

The balance of N39.57bn was shared to the oil producing states based on the 13 per cent derivation principle.

For VAT revenue, the Federal Government received N8.38bn, representing 15 per cent while the states and local government got N27.96bn and N19.57bn, representing 50 per cent and 35 per cent, respectively.

Similarly, it said from the N435bn shared in the month of March, the Federal Government received the sum of N146.48bn, representing 52.68 per cent while the states and local governments received the sum of N74.29bn and N57.28bn, respectively.

In the same vein, the sum of N29.37bn was shared to the oil producing states under the 13 per cent derivation principle.

In terms of revenue collected, the report said the federation had been witnessing a decline in revenue. For instance, the sum of N416.04bn was earned in January, N401.46bn in February and N315.04bn was generated in March.

The report attributed the continued shutdown of trunks and pipelines at various terminals for the negative impact on the country’s revenue.