FG, 36 States, 774 LGs Share N2.8tr in Six Months

August 24, 2017
FG wage bills

By Modupe Gbadeyanka

The three tiers of government (federal, states and local governments) shared N2. 8 trillion between January and June this year, a 38 percent increase on the N2.019 trillion shared in the first half of 2016.

This disclosure is contained in the NEITI Quarterly Review which focuses on disbursement from the Federation Accounts and Allocation Committee (FAAC).

The review was based on data obtained by NEITI at the meetings of FAAC and data from National Bureau of Statistics, Office of the Accountant General of the Federation, Federal Ministry of Finance and the Debt Management Office.

Out of $2.788 trillion disbursed in the first half of 2017, the Federal Government received N1.09 trillion, 36 state governments received N923 billion while N549.8 billion went to 774 local governments in the country.

A further breakdown shows that total releases to the three tiers of government was N430.16 billion in January, N514 billion in February, N496.40 billion in March, N418.82 billion in April, N418.82 billion in May and N462.36 billion in June.

However, despite the 38 percent increase in disbursements in the first half of 2017 when compared with 2016, all the three tiers of government suffered significant revenue decline in terms of projected FAAC disbursement.

“Coupled with the low price of oil is the country’s difficulty in meeting the targeted/budgeted production rate of 2.2 million barrels per day.

“Production has consistently fallen below two million barrels per day since March 2016. Thus the double ‘whammy’ of low oil prices and lower production that hit the country since 2014 has remained,” the NEITI Quarterly Review observed.

For instance, while the expected FAAC disbursement for the three tiers of government was N4.7 trillion, the actual FAAC disbursement to them was N2.788 trillion, representing a shortfall of over 40.67 percent.

According to the publication “the volatility nature of disbursements to all tiers of government in the first half of 2017 would suggest difficulty in implementing budgets at Federal, State and Local government levels.

“The volatility in revenue inflows will adversely affect planning and expenditure of government and thus likely hamper efforts at stimulating growth and development.”

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.

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