Mega FAAC Allocations: How FG, States, LGcs Shared N8tr in 2018

Mega FAAC

Mega FAAC Allocations: How FG, States, LGcs Shared N8tr
in 2018
… FG Got N3.4tr, States/LGs N4.5tr
Richest: Delta N285tr, Lagos N260bn, Kano
N188bn
Poorest: Kwara N81bn, Ebonyi, Gombe N76bn
each

A new report by the Economic Confidential has disclosed that the
Federal Government, 36 states and the 774 local government councils
in Nigeria shared a total sum of N8trillion from the Federation
Account in 2018 in spite of the shut-ins in several oil
installations during the period.

The allocations were made after the monthly meeting of the
Federation Account Allocation Committee (FAAC) in 2018.The current
sources of revenue flow into the Federation Account are revenue
collected by agencies of the Federal Government without
contributions from any state or local government council.

The current sources of revenue flow into the Federation Account
are revenue collected by agencies of the Federal Government with
little or no contributions from states and local government
councils.

While the Federal Government and its agencies received a total
sum of N3.48 trillion the other tiers, States and local government
councils shared a total sum of N4.5 trillion in 2018. Meanwhile in
2017 the Federal Government and its agencies had received N2.5
trillion while the other tiers of government shared N3.3
trillion.

In its annual detailed investigative report with a table of
figures, the Economic Confidential disclosed that among the state
recipients, Delta is ranked first as the highest recipient of gross
allocation with a total sum of N285bn in the twelve months of
2018.

It is followed by Akwa State N272bn, Lagos N260bn, Rivers N237bn
and Bayelsa N192bn. The five states cornered over a quarter (25%)
of the total allocation for the States and local government
councils in Nigeria in 2018.

Among the 10 highest recipients from the Federation Account in
2018 included Kano State which got N183bn, Katsina N138bn, Oyo
N131bn, Kaduna N131bn and Borno State N122bn.

The report further disclosed that Edo and Ondo which are
oil-producing states got N112bn and N108bn respectively while
another state in the South-South, Cross River State merely received
N91bnbn.

The Economic Confidential, Nigeria’s intelligence economic
magazine, gathered that factors that influence allocations to
states and local government councils from the Federation Account
include: Population, Derivation, Landmass, Terrain, Revenue Effort,
School Enrolments, Health Facilities, Water Supply and Equality of
the beneficiaries.

The revenue generating agencies to the Federation Account are
the Nigerian National Petroleum Corporation (NNPC), Federal Inland
Revenue Service (FIRS), Nigeria Customs Service (NCS) and
Department of Petroleum Resources (DPR).

The revenues come from Export Crude Sales, Domestic Crude Sales,
LPG, NLNG, Petroleum Profit Tax (PPT), Company Income Tax (CIT),
Withholding Tax (WHT), Import Duty, Excise Duty, Royalties, Gas
Flared and miscellaneous oil revenue such as Oil Prospecting
License and oil Mining Licence.

The Economic Confidential which is circulated at the monthly
meeting Federation Account Allocation Committee (FAAC) has been
publishing the monthly Federation Account Allocation figures since
January 2007.

It also publishes the Annual States Viability Index (ASVI) which
measures the likely survival of States on their Internally
Generated Revenue (IGR) without relying on Federally Collected
Revenues, especially from the Federation Account.

Federation Account Allocation January to December 2018: https://economicconfidential.com/wp-content/uploads/2019/04/FAAC-January-to-December-2018-Economic-Confidential.pdf^[1]

Read more and previous FAAC Figures: https://economicconfidential.com/2019/04/faac-allocations-2018/

Federation Account Allocation January to December 2017: https://economicconfidential.com/wp-content/uploads/2018/02/Econ-Faac-January-December-2017-PDF.pdf^[2][3]

Federation Account Allocation January to December 2016: https://economicconfidential.com/wp-content/uploads/2017/02/Economic_Confidential_FAAC_Jan_dec_2016-6.pdf^[4]