FAAC: FG gets N5.57trn, States N165trn in 2 years – NBS

…A’Ibom, Rivers get highest allocation of N424.93bn, N394.17bn respectively in 2018 The National Bureau of Statistics (NBS) has disclosed that Federation Account Allocation Committee (FAAC) in two years disbursed a total of N5.57 trillion to the Federal Government and N16.65 trillion to states. The bureau in its report on Wednesday disclosed that N4.24 trillion generated from Gross Statutory Allocation in two years was disbursed to Federal Government, while a total of N96.37 billion generated from Value Added Tax (VAT) was also disbursed to Federal Government in two years. A further breakdown of the amount disbursed to the Federal Government includes N43.4 billion as Nigerian National Petroleum Corporation (NNPC) refund to FG and the distribution of N152.65 billion from the foreign exchange equalisation fund. According to the report for 2018, “The FAAC disbursed the sum of N3.19 trillion to the FG in 2018 while states received a total of N4.84trillion within the period under review. “The amount disbursed to the FG comprised of N2.12 trillion as Net Statutory Allocation, N156.98 billion as VAT, N10.66 billion as NNPC refund to FG and the distribution of N128.41 billion from the foreign exchange equalisation fund.” For 2017, the report noted that FAAC disbursed the sum of N2.38 trillion to the Federal Government in 2017 while states received a total of N11.81 trillion within the period under review. “The amount disbursed to the FG comprised of N2.12 trillion as Gross Statutory Allocation, N139.39 billion as VAT, N32.74 billion as NNPC refund to FG and the distribution of N24.24 billion from the foreign exchange equalisation fund.” The Bureau explained that the amount disbursed to the States for 2018 comprises of N2.27 trillion as Gross Statutory Account, N532.74bn as VAT, N8.64 billion as NNPC refund to FG, N824.64 billion as Exchange Gain distribution, N4.08 billion as Excess Bank Charges and the distribution of N103.36 billion from the foreign exchange equalisation fund. “Akwa Ibom and the Rivers States received the highest allocation of N424.93 billion and N394.17 billion respectively in 2018 while Osun and Ekiti States received the least allocation of N61.62bn and N77.35 billion in that order,” the report by NBS disclosed. The NBS report disclosed that amount disbursed to the States in 2017 comprises of N10.74 trillion as Gross Statutory Account, N474.44 billion as VAT, N32.74 billion as NNPC refund to FG, N112.40 billion as Exchange Gain distribution, N76.99 billion as Excess PPT Savings Accounts, N261.62 billion as Excess Bank Charges and the distribution of N17.55 billion from the foreign exchange equalisation fund. “Akwa Ibom and Rivers states received the highest allocation of N1.19 trillion and N868.83bn respectively in 2017 while Osun and Kwara States received the least allocation of N188.19 billion and N195.59 billion in that order,” the report explained on 2017 total amount disbursed to states. In a report, the Director, Communications & Advocacy of NEITI, Dr. Orji Ogbonanya Orji, last year said: “Total FAAC disbursements in the third quarter of 2018 amounted to N2.28 trillion representing a 17.6 per cent increase over the N1.938 trillion disbursed in the first quarter of 2018 and 13.5per cent higher than the N2.008 trillion disbursed in the second quarter of 2018.” “It is interesting that with the exception of July, the lowest amount disbursed so far in 2018 is higher than disbursements in all other months in 2016 and 2017.” Stressing further, Orji revealed that “the breakdown of the disbursed sums for 2016, 2017 & 2018 shows that the disbursements in the third quarter of 2018 (N2.28 trillion) were 31per cent & 18per cent higher than disbursements in the third quarters of the last two years”. The report also highlighted that the last time total disbursements exceeded the N2.5 trillion mark was in the second quarter of 2014 (N2.510 trillion). While the Federal Government’s receipt of N904.8 billion in the third quarter of 2018, was 11.3per cent and 7.8per cent higher than the amounts received in the first (N812.8 billion) and second (N839.5 billion) quarters of 2018 respectively. “The amount disbursed to states represented an increase of 5.1per cent over the N683.5 billion disbursed in the first quarter and an increase of 3.8per cent over the N692.1 billion disbursed in the second quarter. For LGCs, the amount received was 9.8per cent and 7.5per cent higher than the respective amounts of N393.4 billion and N402.1 billion received in the first and second quarters,” the report stated.

Motolani Oseni