The Federation Account Allocation Committee (FAAC) disbursed the sum of N655.18billion to the three tiers of government in January 2018 from the revenue generated in December 2017, report by National Bureau of Statistics (NBS) disclosed on Thursday.
According to NBS report on government sharing, the amount disbursed comprised of N538.51billion from the Statutory Account and N83.96billion from Valued Added Tax (VAT).
The report stated that, “N14.713billion and N16.055billion were distributed as foreign exchange equalization while an excess bank charges of N1.938billion recovered was also distributed.”
The bureau report stated that federal government received a total of N278.73billon from the N655.18billion shared. States received a total of N175.55billion and Local governments received N132.48billion.
“The sum of N51.74billion was shared among the oil producing states as 13per cent derivation fund,” the report by NBS disclosed.
The report by NBS stated that revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.12billion, N7.44billion and N3.10billion respectively as cost of revenue collections.
“Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N240.98billion was disbursed to the FGN consolidated revenue account; N5.06billion shared as share of derivation and ecology; N2.53billon as stabilization fund; N8.50billion for the development of natural resources; and N5.83billion to the Federal Capital Territory (FCT) Abuja,” the report added.
Meanwhile, a report by NEITI revealed that total FAAC disbursements in 2017 were N6.418trillion; 25.8per cent and 6.8per cent higher than total disbursements in 2016 and 2015 respectively; but 31.4per cent and 25.3per cent lower than the figures for 2013 and 2014 respectively.
The report by NEITI obtained by Nigerian NewsDirect said, “Total FAAC disbursements in 2017 amounted to N6.418 trillion.
“This was 25.8per cent higher than total FAAC disbursements of N5.1 trillion in 2016. Also, total disbursements in 2017 were 6.8per cent higher than the N6.011 trillion disbursed in 2015.
“Total disbursements in 2017 were highest in the third quarter, with N1.929 trillion disbursed, while total disbursements were lowest in the second quarter (N1.377 trillion). Interestingly, the figures reveal that total disbursements were highest in the third quarter for 2016 and 2015. This is in line with previous reviews which found that disbursements were higher in the third quarter than other quarters. This could be attributable to increased demand for oil in the peak summer season of the third quarter,” the report explained.
The report by NEITI explained that total FAAC disbursements to the Federal Government in 2017 were N2.564 trillion.
“FAAC disbursements to the Federal Government in 2017 were highest in July when N286.6 billion was disbursed. This is 74.8per cent higher than the N163.9 billion disbursed in May, which was the month with the lowest disbursement.
“Disbursements were N168 billion in January and this increased to N200.6 billion in February and then fell to N180.5 billion in March. This rising and falling trend in alternate months continued throughout the year, reflecting volatility in revenue for the Federal Government. This volatility can be attributed to volatility in oil production and prices. Such volatility will have a destabilizing effect on the execution of the federal budget,” the report said.