A’Ibom, Rivers, Bayelsa, Delta, Lagos get highest FAAC allocation in QI

….As FG, states, LGAs share N1.4trn in QI

A report from the Federal Account Allocation Committee (FAAC) has shown that five states out of the 36 states of the federation and the FCT received the highest amount out of N1.4 trillion allocated in the first quarter of 2017.

According to the report, the five states that received the highest allocation are Akwa Ibom – N34.88 billion, Rivers – N26.8 billion, Bayelsa – N22.97bn, Delta – N21.54 billion and Lagos – N19.03 billion.

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 N8.73 billion, contractual obligations of N30.15 billion and other deductions amounting to N50.23 billion.

However, the breakdown followed what each of the 36 states got in the first quarter after all deductions were made.
Abia – N8.42 billion, Adamawa- N7.8 billion, Anambra – N8.7 billion, Bauchi – N7.9 billion, Benue – N8.16 billion, Borno – N9.74 billion and Cross River – N4.28 billion.

The states that received the second highest allocation include Kano – N14.02 billion, Kaduna – N10. 56 billion, Ondo – N10.22 billion, Katsina – N10.05 billion and Jigawa – N9.66 billion.
Others are Sokoto – N9.07 billion, Niger – N9 billion, Oyo – N8.9 billion, Kebbi – N8.37 billion, Kogi – N8.28 billion and Yobe – N8.33 billion.

Similarly, Imo – N7.92 billion, Ebonyi – N7.56 billion, Edo – N6.5 billion, Ekiti – N4.97 billion, Enugu – N7.86 billion, Gombe – N6.35 billion, Kwara – N6.9 billion, Nasarawa – N7.41 billion. Ogun State got N4.98 as allocation for first quarter of 2017, Osun – N1.76 billion, Plateau – N5.7 billion, Taraba – N6.9 billion, and Zamfara – N5.91 billion.

The N1.4 trillion shared were revenues from the federation account generated in the first quarter of 2017.

The major revenue generating agencies that remit funds into the federation account are the Nigerian National

Petroleum Corporation (NNPC), the Federal Inland Revenue Service (FIRS) and the Nigerian Customs Service (NCS).

The total revenue shared in January between the federal, states and local government was N430.16 billion, meaning that federal took N168 billion, states, N114.28 billion and local governments, N85.4 billion.

The federation grossed in N514 billion in February and Federal Government’s share was N200.6 billion, states, N128.4 billion and local governments, N96.52 billion.

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

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

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

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.