Federal Allocation to Kwara State for October Drops 6.54%

October 18, 2020
Kwara Workers

By Modupe Gbadeyanka

The sum of N3.780 billion was received by the Kwara State government as its share of federal allocation for the month of October.

The amount was disbursed to the state government from the revenue generated by the country through crude oil sales, tax revenue and others.

A statement issued on Friday by the Commissioner for Finance and Planning, Mrs Florence Olasumbo Oyeyemi, disclosed that the money was lower than the September 2020 allocation by N264.414 million or 6.54 per cent.

She noted that the amount sent to the state government was without the full deductions of loans by the federal government, saying this will begin from next year and would definitely reduce the amount shared to Kwara State.

The deductions were paused in April 202o after Coronavirus pandemic weakened the federal revenue as a result of a decline in the prices of crude oil at the international market.

The commodity is the main source of foreign earnings for Nigeria. In order to make sub-nationals have funds to tackle the virus, the federal government agreed to suspend the deductions.

“It is to be noted that the federal government would next year March resume full deductions of loans that were suspended in April 2020. These deductions would definitely reduce the allocations coming to the state from next year,” the Mrs Oyeyemi emphasised in the statement.

The Commissioner said the allocation to the state government this month comprises N1.919 billion statutory revenue allocation (gross); N310.657 million (deductions); N1.281 billion value-added tax (VAT); N215.776 million forex equilibrium; N392.896 million Excess Crude (FGN Intervention Fund); and N282.253 million non-oil revenue.

She disclosed that the 16 local government areas of the state have received a total sum of N2.475 billion, representing a reduction of N166.304 million when compared with the September allocation for the local government areas.

The breakdowns of the local government areas’ allocations are N1,265,366,165:62 SRA (gross);  N106,033,334:56 as deductions for the court judgement on comprehensive PHCs across the 774 local governments (deductions are being challenged to be refunded); N727,691,180:72 VAT; N142,319,149:40 as forex equilibrium; N259,141,381:56 (excess crude/FGN Intervention Fund); and N186,164,785:60 as non-oil revenue.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Leave a Reply

Dala Inland Dry Port
Previous Story

Phase One of Dala Inland Dry Port in Kano to Gulp N2.3bn

CBA Foundation
Next Story

CBA Foundation Backs Effective Policing, Good Governance

Latest from Economy

Don't Miss