. FG N2.564trn, states N1.859trn, LGAs N1.502trn
. Non-oil revenue, rising oil prices impacted – NEITI
The Federation Account Allocation Committee (FAAC) disbursed a total sum of N6.418 trillion in 2017.
This showed an increase of 25.8% and 6.8% when compared to total disbursements of N5.1trn and N6.011 trn in 2016 and 2015, respectively.
A breakdown of the amount disbursed in 2017, showed that the Federal Government received N2.564trn; the 36 states got N1.859 trn, while the 774 local governments shared N1.502 trn.
The information is contained in the latest edition of the Quarterly Review of the Nigeria Extractive Industries Transparency Initiative (NEITI), entitled: “Analysis of FAAC Disbursements in 2017 and Projections for 2018”.
However, the review noted that despite the fact that FAAC disbursements increased in 2017 over the preceding years, they were still 34.1% and 25.3% lower than total disbursements of N9.742 trn and N8.595 trn in 2013 and 2014 , respectively.
The NEITI review attributed the revenue increase in 2017 to rising oil prices, improved oil production, and greater attention towards development of non-oil revenue sectors.
It projected brighter prospects in 2018 as a result of the current oil price, which recently hovered around $70 per barrel, in addition to upsurge in oil production.
State – by – state breakdown of the FAAC allocations in 2017 showed that Akwa Ibom State received the highest share of 143.6 bn, followed by Rivers State with a total allocation of N119.6 bn.
Delta State came third with a total allocation of N111.2 bn in 2017 , while Bayelsa State got N105.3 bn to take the fourth position. On the other hand, Osun State received N10.4 bn to take the lowest
position of FAAC within the year under review. Other breakdown is below:
Details of States FAAC Receipts in 2017 S/N States Net FAAC Receipt (N bn.) Abia 38.88 Adamawa 37.44 Akwa Ibom 143.61 Anambra 41.34 Bauchi 39.52 Bayelsa 105.26 Benue 39.80 Borno 46.54 Cross River 23.45 Delta 111.20 Ebonyi 35.49 Edo 36.84 Ekiti 25.63 Enugu 37.83 Gombe 31.23 Imo 38.12 Jigawa 45.26 Kaduna 50.81 Kano 65.14 Katsina 46.34 Kebbi 40.08 Kogi 39.65 Kwara 33.11 Lagos 89.69 Nassarawa 35.20 Niger 42.47 Ogun 26.19 Ondo 45.90 Osun 10.44 Oyo 44.47 Plateau 29.62 Rivers 119.63 Sokoto 41.24 Taraba 33.92 Yobe 39.49 Zamfara 28.45
Another striking feature of the latest NEITI review of FAAC allocations is the disclosure that the third quarter of 2017 recorded highest revenues of N1.929 trn, while second quarter recorded the lowest revenues of N1.377 trn.
The NEITI review also revealed that revenue disbursements from Value Added Tax (VAT) have been on the increase since 2015.
The increase is an indication of a positive signal in recognition of the government’s policy towards the development of non-oil sectors through sustained revenue generation from services.
The publication remarked: “VAT disbursements in 2017 were N967.7 bn and N811bn in 2016. This represented an increase of 19.3% in 2017 over the figures for 2016. Also, total VAT disbursements in 2015 were N778.7bn.
This represented an increase of N188.9 bn (24.3%) over the 2015 figures” From the review, the 36 states received the highest share of VAT revenues of N464.5bn in 2017, followed by N325.1 bn shared among the 774 local governments, while the Federal Government received the lowest share from VAT proceeds with N139.3bn.
This is on the account of the fact that states take 50% of VAT, while LGAs and the Federal government take 35% and 15%, respectively.
The NEITI review explained the connection between FAAC disbursements and Nigeria’s exit from recession in 2017.
The report also attributed this development to increased revenues from oil and gas sector as a result of rising oil prices and improved crude oil production due to stability in the Niger Delta.
On Paris Club loan refunds, the review disclosed that the 36 states received N760.18bn. The refunds were released in two batches of N516.38bn and N243.79bn, respectively.
A breakdown showed that Rivers State got the highest amount of N44.925bn, while Gombe State received the lowest sum of N13.4bn.
The NEITI quarterly review is designed to provide timely information and data on FAAC disbursements to the three tiers of government.
The publication is a tool to support citizens’ advocacy, promote constructive debate, information and enlightenment in tracking the utilization of the funds for purposes of development.
NEITI’s interest in FAAC disbursements and the statutory recipients is in view of the fact that over 80% of the funds are derived from the extractive industry.