Delta, Akwa Ibom, Rivers receive lion share as FAAC disburses N606.20 bn in May
Aderemi Ojekunle is a Businessamlive Reporter.
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Charles Abuede
The Nigerian Niger Delta states of Delta, Akwa Ibom and Rivers and others received the lion share as a total of N606.20 billion was disbursed by the Federation Account Allocation Committee (FAAC) to the federal states and local governments in May 2020 from the total revenue generated in April 2020. This is according to the FAAC disbursement data released by the National Bureau of Statistics (NBS), Nigeria and accessed by Business A.M.
From the released data, the total amount disbursed comprised of N370.41 billion from the Statutory Account, N94.50 billion from Valued Added Tax (VAT), N1.12 billion from excess bank charges recovered for the month. Also, a total of N8.89 billion from the distribution was canvassed from Solid Mineral revenue for the month, N103.96 billion distributions for the month and exchange gain dfferences of N27.32 billion.
On the distribution to the tiers of government, the Federal Government received a total of N255.07 billion from the total N606.20 billion. States received a total of N166.63 billion and Local governments received N125.35 billion. The sum of N37.39 billion was shared among the oil-producing states using the 13 per cent derivation fund revenue sharing formula.
A further breakdown of the revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N194.19 billion was disbursed to the FGN consolidated revenue account; N4.59 billion shared as share of derivation and ecology; N2.30 billion as stabilization fund; N7.71 billion for the development of natural resources; and N5.43 billion to the Federal Capital Territory (FCT) Abuja.
Also, the data revealed the disbursement to the revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and the Department of Petroleum Resources (DPR). The data show that the respective agencies received N4.55 billion (NCS), N5.39 billion (FIRS) and N2.98 billion (DPR) as cost of revenue collections.
Meanwhile, the North East development commission received N2.83 billion from the total while there was a N1.99 billion disbursement which accounts for the 0.05 per cent police deduction.