Business/Economy
About N7.6trillion was shared by the Federation Account Allocation Committee (FAAC) to the three tiers of government in the fiscal year ended December 31, 2019. Bamidele Famoofo reports how the federal, state and local governments benefitted from the federal allocation in the review period, which saw the first tier of government receiving the chunk of N3.09trillion- about 41 per cent- of the total distributable income
The three tiers of government received about N7.6 trillion from the federation account in 2019. This is according to figures released by the ministry of finance, budget and national planning and the National Bureau of Statistics (NBS) for the fiscal year ended December 31, 2019.
Members of the Federal Account Allocation Committee (FAAC), include the minister of finance as chairman, all state commissioners of finance, states’ accountants – general, accountant – general of the federation and also the permanent secretary of the federal ministry of finance.
Revenue sources of the government at the centre, from which FAAC receives its distributable income, include cash from the excess crude account, value added tax (VAT), equalisation account and forex gain among others.
The statutory account and VAT are two major sources from which FAAC draws its monthly distributable revenue. In the review period, statutory account accounted for about 85 per cent of the total revenue received by the three tiers of government at N6.49trillion. VAT, which stood at N1.08trillion accounted for 14.3 per cent of the commonwealth of the nation shared in 2019.
According to a statement from the finance ministry in December, there were significant increases in revenues from companies income tax (CIT), VAT, oil and gas royalties and petroleum profit tax (PPT), while import duty increased marginally.
Breakdown of allocation among the tiers of government showed that FG got N3.09trillion, which represented about 41 percent of the largesse in 2019. That amount would finance about 36 per cent of the 2019 budget of the federal government. The allocation to first tier of government in 2019 was three and half times bigger than the 2019 budget of Lagos State.
All the states of the federation shared N1.98trillion which is exclusive of the 13per cent derivation allocation enjoyed by the oil producing states.
Local governments, which are 774 in the federation shared N1.5trillion. While the states accounted for 26.1 per cent of the FAAC allocations in 2019, local governments accounted for 19.8 per cent of total revenue in the review period. Oil producing states had the privilege of sharing an additional 7 percent of the revenue generated centrally in fiscal 2019.
Month–on-month Allocation
The FAAC disbursed the sum of N660.37billion to the three tiers of government in February 2019 from the revenue generated in January 2019. The amount disbursed comprised of N497.12billion from the statutory account, N104.47billion from VAT, N8.12billion as excess charges recovered, N50billion distributed as forex equalisation fund and N654.70million exchange gain differences.
Federal government received a total of N275.33billion from the N660.37billion. States received a total of N182.17billion and local governments received N136.88billion. The sum of N48.49billion was shared among the oil producing states as 13 per cent derivation fund. Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N5.66billion, N7.62 billion and N4.07 billion respectively as cost of revenue collections. Further breakdown of revenue allocation distribution to the federal government revealed that the sum of N221.33 billion was disbursed to the FGN consolidated revenue account; N4.94 billion shared as share of derivation and ecology; N2.47 billion as stabilisation fund; N8.30 billion for the development of natural resources; and N5.90 billion to the Federal Capital Territory (FCT) Abuja.
The sum of N619.86billion was shared in March 2019 from the revenue generated in February 2019. Federal government received a total of N257.68billion from the N619.85billion. States received a total of N169.93billion and local governments received N127.72billion. The sum of N50.95billion was shared among the oil producing states as 13 per cent derivation fund.
In April, FAAC disbursed the sum of N617.57billion. The amount disbursed comprised of N446.65billion from the Statutory Account, N92.18billion from VAT, N55billion as Good and Value Consideration, N10billion as Additional Funds From NNPC, N13.09billion distributed as FOREX Equalisation Fund and N652.55million exchange gain differences. Federal Government received a total of N257.76billion from the N617.57billion. States received a total of N168.25billion and Local Governments received N126.58billion. The sum of N49.82billion was shared among the oil producing states as 13 per cent derivation fund.
All the arms of government shared N616.20billion in May, with FG getting a total of N253.92billion. States received a total of N168.06billion and local governments received N126.28billion. The sum of N46.35billion was shared among the oil producing states as 13 per cent derivation fund.
The three tiers of government got a disbursement of N679.7billion in June 2019, with federal government having a total of N284.16billion. States received a total of N187.61billion and local governments received N140.10billion. The sum of N40.44billion was shared among the oil-producing states as 13 per cent derivation fund.
The FAAC disbursed the sum of N762.6billion to the three tiers of government in July 2019 from the revenue generated in June 2019. The amount disbursed comprised of N652.95billion from the statutory account, N108.63billion from VAT and N1.02 billion exchange gain differences. Federal government received a total of N309.43billion from the N762.60billion. States received a total of N201.16billion and local governments received N151.38billion. The sum of N38.70billion was shared among the oil producing states as 13 per cent derivation fund.
To the three tiers of government in August 2019, was N769.53billion shared from the revenue generated in July 2019. The amount disbursed comprised of N607.37billion from the statutory account, N94.16billion from VAT and N999.99m exchange gain differences. Federal government received a total of N299.80billion from the N769.53billion. States received a total of N190.38billion and local governments received N143.57billion. The sum of N51.63billion was shared among the oil producing states as 13 per cent derivation fund.
The FAAC disbursed the sum of N740.87billion to the three tiers of government in September 2019 from the revenue generated in August 2019. the amount disbursed comprised of N610.04billion from the statutory account, N20billion from forex equalisation account, N1.754billion from excess bank charges recovered for the month, N88.08billion from VAT and N1billion exchange gain differences. Federal government received a total of N310.97billion from the N740.87billion. States received a total of n193.57billion and local Governments received N146.23billion. The sum of N48.74billion was shared among the oil producing states as 13 per cent derivation fund. Revenue generating agencies such as NCS, FIRS and DPR received N5.34billion, N10.99billion and N3.644billion respectively as cost of revenue collections. Further breakdown of revenue allocation distribution to FG revealed that the sum of N242.01billion was disbursed to the FGN consolidated revenue account; N5.66billion shared as share of derivation and ecology; N2.83billion as stabilisation fund; N9.51billion for the development of natural resources; and N6.47billion to FCT.
FAAC disbursed the sum of N693.52billion to the three tiers of government in October 2019 from the revenue generated in September 2019. The amount disbursed comprised of N599.70billion from the statutory account, N92.87billion from VAT and N954.20million exchange gain differences. Federal government received a total of N293.80billion from the N693.52billion. States received a total of N186.81billion and Local Governments received N140.86billion. The sum of N51.53billion was shared among the oil producing states as 13 per cent derivation fund. Revenue generating agencies such as Nigeria NCS, FIRS and DPR received N5.61billion, N8.18billion and N5.70billion respectively as cost of revenue collections. Further breakdown of revenue allocation distribution to FG revealed that the sum of N226.21billion was disbursed to the FGN consolidated revenue account; N5.32billion shared as share of derivation and ecology; N2.66billion as stabilisation fund; N8.94billion for the development of natural resources; and N6.17billion to FCT.
FAAC disbursed the sum of N702.02billion to the three tiers of government in November 2019 from the revenue generated in October 2019. The amount disbursed comprised of N587.20billion from the statutory account, N104.91billion from VAT, N8.70billion from solid mineral revenue and N1.11billion exchange gain differences. Federal government received a total of N295.74billion from the N702.02billion. States received a total of N192.70billion and local governments received N144.99billion.
The sum of N49.16billion was shared among the oil producing states as 13 per cent derivation fund. Revenue generating agencies such as NCS, FIRS and DPR received N5.97billion, N9.12billion and N4.34billion respectively as cost of revenue collections. Further breakdown of revenue allocation distribution to the FG revealed that the sum of N228.02billion was disbursed to the FGN consolidated revenue account; N5.33billion shared as share of derivation and ecology; N2.66billion as stabilisation fund; N8.95billion for the development of natural resources; and N6.30billion to FCT.
