How FG, States, LGs Shared N1.41trn in First Quarter

In the first 3 Months of 2017, the Federal Government, the 36 states of the federa­tion and the 774 local govern­ment areas shared N1.4 trillion from the Federation Account.
Apart from the Feder­al Government, three states – Akwa Ibom, Rivers and Lagos – got the lion shares of N34.88 billion, N26.8 billion, and N19.03 billion respectively.

A breakdown of the alloca­tion contained in the month­ly Federation Account Allo­cation Committee (FAAC) report which the News Agen­cy of Nigeria (NAN) obtained on Sunday in Abuja, showed that the three tiers of govern­ment shared N430.16 billion in January. The Federal Govern­ment got N168 billion, states, N114.28 billion and local gov­ernments, N85.4 billion during the period.
The key agencies that re­mit funds into the federation account are the Nigerian Na­tional Petroleum Corporation (NNPC), the Federal Inland Revenue Service and the Nige­rian Customs Service.
The federation grossed in N514 billion in February and the 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 government, N87.5 billion.
The allocation was made us­ing the revenue sharing formu­la, Federal Government, 52.68 per cent; states, 26.72 per cent and local governments 20.60 per cent.
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.
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 state by state alloca­tions were: Abia N8.42 billlion, Adamawa N7.8 billion, Akwa Ibom N34.88 billion, Anam­bra, N8.7 billion, Bauchi, N7.9 billion, Bayelsa, N22.97 billion, Benue, N8.16 billion, Borno, N9.74 billion and Cross River, N4.28 billion.
Also, Delta got N21.54 bil­lion, Ebonyi, N7.56 billion, Edo, N6.5 billion, Ekiti, N4.97 billion, Enugu, N7.86 billion, Gombe, N6.35 billion, Imo, N7.92 billion, Jigawa, N9.66 bil­lion, Kaduna, N10.56 billion and Kano, N14.02 billion.
Similarly, Katsina’s share from the federation account in 3 monthswas N10.05 billion, Ke­bbi, N8.37 billion, Kogi, N8.28 billion, Kwara, N6.9 billion, La­gos, N19.03 billion, Nassarawa, N7.41 billion and Niger, N9 bil­lion.
Finally, Ogun State got N4.98 as allocation for first quarter in 2017, Ondo,N10.22 billion, Osun, N1.76 billion, Oyo, N8.9 billion, Plateau, N5.7 billion, Rivers, N26.8 bil­lion, Sokoto, N9.07 billion, Tara­ba, N6.9 billion, Yobe, N8.33 bil­lion, and Zamfara, N5.91 billion.
FAAC 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.