Nigerian govt, states, LGs, others share N2.3 trillion – Miyeti Allah – NEITI

The Federation Account Allocation Committee (FAAC) disbursed a total of N2.273 trillion to the three tiers of government and other statutory recipients between July and September this year, the Nigeria Extractive Industries Transparency Initiative (NEITI) revealed in its latest Quarterly Review publication.

The three tiers of government consist of the federal; 36 states and the Federal Capital Territory, including the 774 local governments in the country.

The report disclosed that the federal government received an allocation that was about 18.79 per cent more than the N1.9 trillion disbursed in the second quarter of 2019 and 17.8 per cent more than the N1.9 trillion disbursed in the first quarter of the year.

The Quarterly Review, released in Abuja on Monday, used data obtained from the secretariat and the National Bureau of Statistics.

The report said that for the first time since the fourth quarter of 2018, total FAAC allocations exceeded N2 trillion in a quarter.

This is the first time the FAAC disbursements would exceed N2 trillion in four of the last six quarters, it said.
“The last time the disbursements to the three tiers of government received allocations in excess of N2 trillion was in the third quarter of 2014.

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This is a big improvement compared to N886.48 billion recorded in the second quarter of 2016. The amount is still lower than N2.6 trillion in the first quarter of 2013 Q1,” the review noted.

Breakdown
A breakdown of the N2.3 trillion disbursed in the last quarter of 2019 showed that the federal government received about N920.2 billion, while the states and local governments received N724.2 billion and N441.2 billion respectively.

A closer review of the data showed the amount received by the federal government in the third quarter of 2019 was 15.6 per cent higher than the N795.84 billion it received in the second quarter. It was also about 14.6 per cent higher than the N803.1 billion it received in the first quarter of the same year.

For the states, the amount received during the third quarter of 2019 was 9.6 per cent higher than the N660.2 billion received in the second quarter, and also 7.3 per cent higher than the N675.2 billion received in the first quarter of the same year.

The amount received by the local governments for the same period was 12 per cent higher than the N393.9 billion received in the second quarter and 10.73 per cent higher than the N398.4 billion received in the first quarter.

Further analysis showed that aggregate FAAC disbursements for the first nine months of 2019 were N6.1 trillion.

The breakdown showed that between January and September 2019, the FG received a total of N2.5 trillion, while the states and the local governments received N2 trillion and N1.2 trillion respectively.

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‘Wide disparity’
On disbursements to the states in the third quarter of 2019, the NEITI review noted a wide disparity between Osun State (which received the lowest amount of N6.9 billion) and Delta State that got the highest disbursement of N54.9 billion. This implied that Delta State received almost eight times what Osun State got.

The review also showed that the four states with the highest net disbursements, which were all in the South-south geopolitical zone, received a combined total of N173.6 billion.

This was more than the combined total of N164.6 billion received by the 14 states with the lowest disbursement.
On direct deductions from states’ allocations in the third quarter of 2019, Yobe State had the lowest deductions of N593 million while Lagos recorded the highest deduction of N12 billion.
The review also disclosed that “combined FAAC disbursements for the first three quarters of 2019 – taken as a percentage of 2019 budgets – were above 30 per cent in only seven states.
It also noted that the majority of the states had received below 30 per cent of their annual budgets in FAAC disbursements after the ninth month of 2019.

”Net FAAC disbursements being below 30 per cent in most states is worrying, because most states depend on FAAC disbursements for at least 80 per cent of their revenues,” it noted.

The review said that most states’ budgets will be underfunded this year.
The possible exceptions are Lagos, Rivers and Ogun states, which have a considerable history of high internally generated revenue (IGR).

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States FAAC Net Disbursements Q1 – Q3 2019 (N BILLION) Deductions from FAAC Q1 – Q3 2019 (N BILLION) 2019 budget (N BILLION) FAAC as a % of Budget (%)
Abia 39.35 4.76 140.20 28.07
Adamawa 36.29 4.59 244.00 14.88
Akwa Ibom 128.28 10.05 672.98 19.06
Anambra 40.55 1.51 157.17 25.80
Bauchi 39.58 9.09 198.85 19.90
Bayelsa 102.43 12.89 299.00 34.26
Benue 40.71 5.09 199.70 20.39
Borno 46.30 3.29 144.70 32.00
Cross River 27.28 13.59 1.04 2.62
Delta 163.58 11.12 390.30 41.91
Ebonyi 33.44 3.47 188.40 17.75
Edo 48.58 5.52 183.70 26.45
Ekiti 31.07 5.87 129.90 23.92
Enugu 39.08 2.69 109.19 35.79
Gombe 30.81 7.55 122.40 25.17
Imo 41.58 8.60 276.82 15.02
Jigawa 44.26 1.94 160.14 27.64
Kaduna 50.35 3.99 157.45 31.98
Kano 61.89 4.94 219.97 28.13
Katsina 47.56 3.20 202.40 23.50
Kebbi 39.79 3.05 151.00 26.35
Kogi 39.21 5.28 146.74 26.72
Kwara 31.94 4.79 157.80 20.24
Lagos 88.48 32.75 852.32 10.38
Nassarawa 33.81 3.55 90.17 37.50
Niger 42.13 5.61 164.00 25.69
Ogun 28.87 11.10 400.00 7.22
Ondo 43.44 6.57 193.90 22.40
Osun 16.98 21.37 154.40 11.00
Oyo 42.62 7.67 285.15 14.95
Plateau 32.92 9.55 153.50 21.45
Rivers 115.95 7.98 480.41 24.14
Sokoto 41.68 3.04 169.65 24.57
Taraba 34.99 4.00 146.73 23.84
Yobe 38.83 1.33 91.64 42.37
Zamfara 31.27 9.53 135.43 23.09

Above are the details of FAAC States Net Disbursements and Deductions (Q1 – Q3 2019):

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