FG gets N904.8bn as FAAC shared N2.28tn in 9 months

The Federal Government has received the sum of N904.8 billion, the largest amount disbursed by the Federation Account Allocation Committee (FAAC) from the N2.28 trillion revenue shared in Q3 2018.

The revenue shared is the highest in 2018 within Q1 and Q3, while the FG got N904.8 billion, states shared N718.5 billion and Local governments (LGCs) receiving the lowest disbursements of N432.1 billion.

The announcement of the disbursement was made by the Director, Communications & Advocacy of NEITI, Dr. Orji Ogbonanya Orji, in Abuja.

Orji explained that the total disbursement represents a 17.6 per cent increase over the N1.938 trillion disbursed in the first quarter of 2018 and 13.5 per cent higher than the N2.008 trillion disbursed in the second quarter.

“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 13.5 per 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 31 per cent & 18 per 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 N2.5trillion 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 11.3 per cent and 7.8 per 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 5.1 per cent over the N683.5 billion disbursed in the first quarter, and an increase of 3.8 per cent over the N692.1 billion disbursed in the second quarter.

For LGCs, the amount received was 9.8 per cent and 7.5 per cent higher than the respective amounts of N393.4 billion and N402.1 billion received in the first and second quarters.”

The report, however, revealed some disparity in states disbursement throughout the year.

“A comparison of the state-by-state net disbursement shows a stark disparity in the amounts received.

For instance, the net disbursement received by Delta State in January alone sums up to the total net disbursements to Osun State from January to September 2018.

This clearly indicates that disbursements to Delta State were higher than the one to Osun by over 800 per cent.”