Nigeria: Delta, Akwa Ibom Received Highest As Govt, States, LGs Shared N8 Trillion in 2018

23 April 2019

The federal government, 36 states and the 774 local government councils in Nigeria shared a total sum of N8 trillion from the Federation Account in 2018 with Delta and Akwa Ibom States, receiving the highest, a report by the Economic Confidential has revealed.

The allocations were made after the monthly meetings 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 with little or no contributions from states and local government councils.

While the federal government and its agencies under the administration of President Muhammadu Buhari 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 N285 billion in the twelve months of 2018.

It is followed by Akwa State, N272 billion; Lagos, N260 billion; Rivers, N237 billion; and Bayelsa, N192 billion. The five states cornered over a quarter (25 per cent) of the total allocation for the states and local government councils in 2018.

Among the 10 highest recipients from the Federation Account in 2018 included Kano State, which got N183 billion; Katsina, N138 billion; Oyo, N131billion; Kaduna, N131billion; and Borno State, N122 billion.

The report further disclosed that Edo and Ondo, which are oil-producing states, got N112 billion and N108 billion, respectively, while another state in the South-south, Cross River State, received N91 billion.

It was gathered that the 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 the 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 of the Federation Account Allocation Committee (FAAC) has been publishing the monthly FAAC figures since January 2007.

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