A new report by the Economic Confidential has disclosed that the Federal Government, 36 states and the 774 local government councils in Nigeria shared a total sum of N8trillion from the Federation Account in 2018 despite the shut-ins in several oil installations during the period.
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 said that among the state recipients, Delta is ranked first as the highest recipient of gross allocation with a total sum of N285bn in the twelve months of 2018.
It is followed by Akwa State N272bn, Lagos N260bn, Rivers N237bn and Bayelsa N192bn. The five states cornered over a quarter (25%) of the total allocation for the States and local government councils in Nigeria in 2018.
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 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.
You may be interested
2 reasons APC women embark on 21-day fasting for BuhariWebby - May 26, 2019
The APC Women Aspirants Forum has started a 21-day fasting and prayer programme for President Muhammadu Buhari for a second…
Tinubu: Lagos group backs El-Rufai, wants Osinbajo as Buhari’s successor in 2023Webby - May 26, 2019
A Lagos group under the auspices of Save Lagos Group (SLG) has lauded the Kaduna State Governor, Nasir El-Rufai, over…
HURIWA blows hot over Fulani Radio, attacks Buhari govtWebby - May 26, 2019
A Civil Rights Advocacy group, the Human Rights Writers Association of Nigeria, HURIWA, has asked the Nigerian government to perish…