– A report from the office of the accountant-general of the federation shows that key agencies that remit funds into the federation account are the NNPC, the Federal Inland Revenue Service and the Nigerian Customs Service
– In the last federation account allocation committee (FAAC) meeting in September, 2017, federal, states and local governments shared N637.7 billion
– The report shows that the federal capital territory got N5.74 billion from the federal government’s share of the distributable revenue
The 36 states shared N173.8 billion from the federation account in September 2017 from the distributable revenue generated for the month.
The breakdown was obtained by the News Agency of Nigeria (NAN) in a report from the office of the Accountant-General of the Federation in Abuja.
The funds are usually shared the following month.
For example, revenue generated in January is shared in February; thus, the revenue shared was actually generated in August and shared in September.
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.
NAIJ.com learnt that the last Federation Account Allocation Committee (FAAC) meeting in September, federal, states and local governments shared N637.7 billion.
The report showed that the revenue distributed included the Gross Statutory revenue, Value Added Tax, exchange gains and Petroleum Profit Tax.
The report showed that before distribution to the states, their liabilities were first deducted.
The liabilities include a total external debt of N2.67 billion, contractual obligations of N9.58 billion and other deductions amounting to N18.2 billion.
The report showed that the other deductions covered National Water Rehabilitation Projects, National Agricultural Technology Support, Salary bailout, Payment for Fertilizer, State Water Supply Project, State Agriculture Project and National Fadama Project.
To sum it up, here is what the 36 states got after all deductions were made.
Abia N4.04 billlion, Adamawa N4.02 billion, Cross River N2.85 billion, Ekiti N2.94 billion, Edo N4.5 billion, Kaduna State N5.4 billion, Kano State N6.8 billion, Lagos state N8.8 billion, Rivers N12.45 billion, and Zamfara, N3.05 billion.
Delta got N14.2 billion, Anambra N4.3 billion, Benue N4.2 billion, Borno N4.9 billion, Ebonyi N3.76 billion, Enugu State N4.07 billion, Gombe State N3.39 billion, Nassarawa State N3.74 billion, Imo N3.96 billion and Kogi N4.24 billion.
Yobe also got N4.15 billion, Taraba, N3.6 billion, Sokoto state N4.1 billion, Plateau N3.38 billion, Oyo State N4.8 billion, Osun N1.6 billion, Ondo State N4.64 billion, Ogun N3.04 billion, Niger N4.61 billion and Kebbi N4.26 billion.
Similarly, Katsina state got N4.66 billion, Bayelsa N10.88 billion, Bauchi State N4.34 billion, Jigawa N4.67 billion, Akwa Ibom, N12.94 billion and Kwara N3.53 billion.
The report also showed that the Federal Capital Territory got N5.74 billion from the Federal Government’s share of the distributable revenue in September.
From the data, the top 10 earning states from the federation account for the month are Delta, Akwa Ibom, Rivers, Bayelsa, Lagos, Kano, Kaduna, Borno, Oyo, Jigawa state in that order.
The 10 lowest earners for the month are Osun state, Cross River, Ekiti, Ogun state, Zamfara, Plateau, Gombe, Kwara, Taraba and Nassarawa state.
The FAAC committee is made up of commissioners of finance and Accountants-General from the 36 states of the federation; the Accountant General of the Federation, and representative from the NNPC.
Others 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.
Meanwhile, the federal government has been warned about its rising debt profile, especially foreign loans, by the International Monetary Fund (IMF).
The Nation reports. The financial institution issued the warning on Wednesday, October 11. This comes following President Muhammadu Buhari’s recent request to the National Assembly for approval to borrow $5.5 billion to fund the 2017 budget.
NAIJ.com gathers that Tobias Adrian, IMF director, Monetary and Capital Markets Department, lamented over the fact that the external borrowing of low income countries including Nigeria, keeps rising.
He stressed that if the resources gotten from such borrowing are not put to good use, it would become a serious challenge.
According to data from the Debt Management Office, Nigeria’s public debt as at June 2017 stood at $64.19 billion (N19.63 trillion).
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