Amid severe effects of current economic recession, a total sum of N2.6 trillion was disbursed from the Fed-eration Account to the 36 states and Federal Capital Territory (FCT) as well as the 774 local government councils in 2016.
According to a report highlighted by an intelligence economic magazine, Economic Confidential, the total figure was payment made to the two tiers of government between January and December 2016 at the monthly meeting of the Federation Account Allocation Committee (FAAC).
In the report, five states cornered 25 per cent of the total allocation during the year. Lagos State, unexpectedly, ranked first as the highest recipient, garnering a total sum of N178 billion during the 12-month period.
It was followed by Akwa Ibom with N150 billion; Rivers, N134 billion; Delta, N126 billion, while Kano received N111 billion. Also in the league of the 10 highest recipients are Bayelsa, which got N99 billion; followed by Katsina, N83 billion; Oyo, N80 billion; Kaduna, N78 billion, and Borno, N73 billion.
The least recipients are FCT, which got N19 billion. Gombe and Ebonyi states, N46 billion each, followed by Ekiti and Nasarawa states with N47 billion each while Kwara received N49 billion.
The report further disclosed that Edo and Ondo, which are oil-producing states, got N59 billion and N70 billion respectively, while Cross River received N55 billion.
Others are Niger, N70 billion; Benue, N69 billion; Jigawa, N68 billion; Bauchi, N68 billion; Imo, N67 billion; Sokoto, N65 billion; Kogi, N63 billion; Osun, N62 billion; Kebbi, N60 billion and Anambra, N60 billion.
The list also includes Adamawa, N58 billion; Plateau, N57 billion; Ogun, N57 billion; Enugu, N56 billion; Abia, N54 billion; Yobe, N53 billion and Taraba, N52 billion. Factors that influence allocations to states and local government councils from the Federation Account include population, derivation, landmass, terrain, revenue effort, school enrolments, health facilities, water supply and equality of beneficiaries.
There was a marginal increase of N13.121 billion in federal allocation to the three tiers of government in January this year, as revenue shareable rose to N400 billion as against the N386.879 billion shared in December 2016.
Minister of Finance, Mrs. Kemi Adeosun, had said the amount comprised the month’s statutory distributable revenue of N224.883 billion, Value Added Tax (VAT) of N79.273 billion, exchange gain of N52.842 billion and excess PPT account of N42.998 billion, as well as N6.330 billion refund to the Federal Government by the Nigerian National Petroleum Corporation (NNPC). Adeosun attributed the increase to a rise in royalties collected, Company Income Tax (CIT) and Value Added Tax (VAT).
“From the net statutory revenue, the Federal Government received N105.762 billion (52.68%), states received N53.644 billion (26.72%), local government councils received N41.357 billion (20.60%) while the oil-producing states received N15.504 bil-confilion as 13 per cent derivation revenue.
“Furthermore, from the revenue available from VAT, the Federal Government received N11.415 billion (15%); states received N38.051 billion (50%) while local government councils received N26.636 billion (35%),” she added.
She said N248.715 billion gross statutory revenue received was higher by N8.595 billion when compared to the N240.120 billion received in December 2016.
The minister added that there was a revenue decline of $65.40 million in federation export sales due to a drop in the volume of crude oil export of 1.390 million barrels while crude oil sales increased from $47.08 to $47.30 per barrel during the period under review. Adeosun also disclosed that the amount left in the Excess Crude Account now stood at $2.457 billion.
New Telegraph
