A new report by the Economic Confidential has disclosed that the federal government, 36 states and the 774 local government councils in Nigeria shared a total sum of N8 trillion from the Federation Account in 2018 in spite of the shut-ins in several oil installations during the period.
The allocations were made after the monthly meetings of the Federation Account Allocation Committee (FAAC) in 2018.
The current sources of revenue flow into the Federation Account are revenue collected by agencies of the federal government with little or no contributions from states and local government councils.
While the federal government and its agencies under the administration of President Muhammadu Buhari received a total sum of N3.48 trillion, the other tiers, states and local government councils, shared a total sum of N4.5 trillion in 2018. Meanwhile, in 2017 the federal government and its agencies had received N2.5 trillion while the other tiers of government shared N3.3 trillion.
In its annual detailed investigative report with a table of figures, the Economic Confidential disclosed that among the state recipients, Delta is ranked first as the highest recipient of gross allocation with a total sum of N285 billion in the twelve months of 2018.
It is followed by Akwa State
N272bn, Lagos N260bn, Rivers N237bn and Bayelsa N192bn. The five states
cornered over a quarter (25 per cent) of the total allocation for the
states and local government councils in Nigeria in 2018.
Among the 10
highest recipients from the Federation Account in 2018 included Kano
State which got N183bn, Katsina N138bn, Oyo N131bn And Kaduna N131bn
The
report further disclosed that Edo and Ondo, which are oil-producing
states, got N112bn and N108bn respectively while another state in the
South-South, Cross River State, merely received N91bn
The
Economic Confidential, Nigeria’s intelligence economic magazine,
gathered that factors that influence allocations to states and local
government councils from the Federation Account include: Population,
Derivation, Landmass, Terrain, Revenue Effort, School Enrolments, Health
Facilities, Water Supply and Equality of the beneficiaries.
The
revenue generating agencies to the Federation Account are the Nigerian
National Petroleum Corporation (NNPC), Federal Inland Revenue Service
(FIRS), Nigeria Customs Service (NCS) and Department of Petroleum
Resources (DPR).
The revenues come from Export Crude Sales, Domestic
Crude Sales, LPG, NLNG, Petroleum Profit Tax (PPT), Company Income Tax
(CIT), Withholding Tax (WHT), Import Duty, Excise Duty, Royalties, Gas
Flared and miscellaneous oil revenue such as Oil Prospecting License and
oil Mining Licence.
The Economic Confidential which is circulated at
the monthly meeting of the Federation Account Allocation Committee
(FAAC) has been publishing the monthly FAAC figures since January 2007.
It
also publishes the Annual States Viability Index (ASVI) which measures
the likely survival of states on their Internally Generated Revenue
(IGR) without relying on federally collected revenues, especially from
the Federation Account.
Source:- Premiumtimesng
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