news

FG, states, LGs, share N1.41tn from federation account in first quarter

By  | 

The Federal Government, the 36 states and their local government areas have so far shared N1.4tn from the federation account, being revenue generated in the first quarter of 2017.

The breakdown is contained in the monthly Federation Account Allocation Committee report obtained on Sunday in Abuja.

The key agencies that remit funds into the federation account are the Nigerian National Petroleum Corporation, the Federal Inland Revenue Service and the Nigerian Customs Service.

The total revenue shared in January between the federal, states and local government was N430.16bn, meaning that federal took N168bn, states, N114.28bn and local government, N85.4bn.

The federation grossed in N514bn in February and federal government’s share was N200.6bn, states, N128.4bn and local government, N96.52bn.

However, in March, revenue generation dipped lower, grossing N466.9bn, and from it, the federal government got N180.5bn, state governments, N116.5bn and local government, N87.5bn.

The allocation was made using the revenue sharing formula, Federal Government, 52.68 per cent; states, 26.72 percent and local governments 20.60 percent.

The report showed that before distribution, state liabilities were deducted.

The liabilities paid by the states in the first quarter, included an external debt of N8.73bn, contractual obligations of N30.15bn and other deductions amounting to N50.23bn.

The other deductions, covers National Water Rehabilitation Projects, National Agricultural Technology Support, Payment for Fertiliser, State Water Supply Project, State Agriculture Project and National Fadama Project.

However, here is what each of the 36 states got in the first quarter after all deductions were made. Abia N8.42 billlion, Adamawa N7.8 billion, Akwa Ibom N34.88 billion, Anambra, N8.7 billion, Bauchi, N7.9 billion, Bayelsa, N22.97 billion, Benue, N8.16 billion, Borno, N9.74 billion and Cross River, N4.28 billion.

Also, Delta got N21.54 billion, Ebonyi, N7.56 billion, Edo, N6.5 billion, Ekiti, N4.97 billion, Enugu, N7.86 billion, Gombe, N6.35 billion, Imo, N7.92 billion, Jigawa, N9.66 billion, Kaduna, N10.56 billion and Kano, N14.02 billion.

Similarly, Katsina’s share from the federation account in 3 months was N10.05 billion, Kebbi, N8.37 billion, Kogi, N8.28 billion, Kwara, N6.9 billion, Lagos, 19.03 billion, Nassarawa, N7.41 billion and Niger, N9 billion.

Finally, Ogun state got N4.98 as allocation for first quarter, 2017, Ondo,N10.22 billion, Osun, N1.76 billion, Oyo, N8.9 billion, Plateau, N5.7 billion, Rivers, N26.8 billion, Sokoto, N9.07 billion, Taraba, N6.9 billion, Yobe, N8.33 billion, and Zamfara, N5.91 billion.

The FAAC committee is made up of commissioners for Finance and Accountant-Generals from the 36 states of the federation.

The Minister of Finance, is the chairman of the committee, while the Accountant-General of the Federation, is next with representatives from the NNPC.

Other members are representatives from the Federal Inland Revenue Service; the Nigerian 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 to the three tiers of government under three major components.

These components are the statutory allocation, Value Added Tax distribution; and allocation made under the derivation principle.

(NAN)

Leave a Reply

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