Ngozi Okonjo Iweala
The Federation Account Allocation Committee (FAAC) shared a total statutory revenue of N1.912 trillion among the three tiers of government for first quarter of 2014, data compiled by THISDAY has shown.
The aforementioned amount was however higher by 31 per cent, compared to the N1.490 trillion (after accounting for all deductions and transfers) that was transferred to the federation account for distribution among the three tiers of government and the 13 per cent derivation fund for the fourth quarter of 2013.
A breakdown of FAAC allocation for the first quarter showed that while in January, total statutory revenue of N629.128 billion was shared among the three tiers of government, about N641.29 billion for February; N641.3 billion was shared for March, 2014.
For the third quarter 2013, the federal government had received N702.22 billion, while the state and local governments received N356.17 billion and N274.60 billion, respectively.
In his opinion, the Emerging Markets Strategist, Standard Bank Plc, Samir Gadio said the oil revenue, which is continuously monetised and shared among the three tiers of governments, prevents any tangible accumulation of the forex reserves as well as the Excess Crude Account (ECA).
Gadio added: “Clearly, this model is not sustainable. Nigeria is already a distinct laggard in terms of fiscal savings-to-GDP ratio compared to oil producing peers and will most likely be unable to withstand an external shock should oil prices fall in the future.”
He stressed the need to make the Sovereign Wealth Fund very effective, adding that there is need for increased fiscal accountability.
Nigeria’s ECA is currently at about $3.6 billion, higher than the $3.4 billion it was in February, just as the external reserves stood at $37.911 billion as at April 16.
The Accountant General of the Federation (AGF), Mr. Jonah Otunla, at the last FAAC meeting noted that there was decline in mineral revenue in March due to oil theft, repair works on pipeline leaks at Bonny and Brass, production shut-in at Qua Iboe terminal and shut down of Forcados.
Mineral revenue for March stood at about N519.99 billion while the non- mineral component stood at about N94.36 billion.
Also, FAAC members, at the meeting last week, voted unanimously to remove oil subsidy, according to the Chairman, Commissioners of Finance Forum, Mr. Timothy Odah.
He had also said their resolution would be communicated to the presidency for immediate action, adding that the subsidy regime was not beneficial to the states.