FAAC shares ₦3.946 trillion among FG, states and LGs in H1’18 – NEITI
The Federation Accounts Allocation Committee (FAAC) has disbursed ₦3.946 trillion in the first half of 2018 to Federal, State and Local Governments, the Nigeria Extractive Industries Transparency Initiative (NEITI) quarterly report has revealed.
The report released in Abuja, on Monday, noted that amount rose by 41.4 per cent compared to ₦2.788 trillion disbursed in the first half of 2017 and 95.4 per cent higher than the ₦2.019 trillion disbursed in the first half of 2016.
It said Delta state received the highest allocation of ₦101.19 billion in the six-month followed by Akwa Ibom with ₦100.2 billion; Rivers State with ₦85.01 billion, while Bayelsa received ₦77.14 billion.
According to the report, the four states received a total of ₦364.26 billion in the quarter under review.
“Thus, the disbursements in the first half of 2018 were almost double the disbursements in the first half of 2016.
“The breakdown of the data reveals that in the first half of 2018, the Federal Government received ₦1.652 trillion, which made up 41.8 per cent of the total amount disbursed;
“The states got ₦1.375 trillion, representing 34.8 per cent of the total; while ₦795 billion was disbursed to the Local Government Areas (LGAs), representing 20.1 per cent of the total.” it said
The report further noted that following the top four states to make the top ten category in the report was Lagos state that received ₦59.52 billion, Kano ₦39.88 billion, Edo ₦32.88 billion, Kaduna ₦32.86, Ondo ₦30.96 billion and Borno ₦30.04 billion.
On the other hand, the report revealed that the 10 states with the least federation allocation received a total of ₦189.45 billion, about six per cent less than the ₦201.39 billion total allocation received by Delta and Akwa Ibom states.
Osun state received the least allocation in the six-month period with N10.24 billion, while Cross River, Ekiti, Zamfara and Ogun states received ₦17.13 billion, ₦17.92 billion, ₦18.64 billion, ₦18.79 billion respectively.
Others include Plateau, Gombe, Kwara, Ebonyi and Taraba, with allocation of ₦20.6 billion, ₦20.64 billion, ₦21.39 billion, ₦21.61 billion and ₦22.49 billion respectively.
Continuing, the report noted, “In the first quarter of 2013, total disbursements were ₦2.607 trillion. This figure for first quarter of 2013 was the highest over this period while the ₦886.4 billion disbursed in second quarter 2016 was the lowest.
“This indicates a difference of ₦1.721 trillion between disbursements in the highest and lowest months.
This figure is very large and further highlights the volatility in revenue for the Federation, arising from the dependence on oil.
“This shows a generally declining pattern in disbursements from first quarter of 2013 until a trough was reached in second quarter 2016. Thereafter, an upward pattern is observed, and this increase continued until second quarter of 2018,’’ it stated.
The report indicated that the ₦2.008 trillion disbursed in second quarter of 2018 was the highest since third quarter of 2014, adding that second quarter of 2018 was the first time an amount in excess of N2 trillion was disbursed since third quarter 2014.
“This is a run of 14 consecutive quarters of disbursements below ₦2 trillion.’’ It added.
It further stated that all disbursements from first quarter of 2013 to second quarter 2014 were in excess of ₦2 trillion; this figure, it added clearly showed the contraction in revenue for all tiers of government, a pointer to why they had struggled to meet their obligations.
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