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Home News FG, states, LGs share N3.14tn from federation account in five months

FG, states, LGs share N3.14tn from federation account in five months

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Between January and May this year, the three tiers of government got the sum of N3.14tn as allocation from the federation account.

The amount was allocated by the Federation Account Allocation Committee to the federal, states and local governments.

The committee, which is headed by the Minister of Finance, is made up of commissioners of finance from the 36 states of the federation; the Accountant General of the Federation, Mr Ahmed Idris, and representatives from the Nigerian National Petroleum Corporation.

Others are representatives from the Federal Inland Revenue Service, the Nigeria Customs Service; Revenue Mobilisation, Allocation and Fiscal Commission as well as the Central Bank of Nigeria.

The federation account is currently being managed on a legal framework that allows funds to be shared under three major components-statutory allocation, Value Added Tax distribution, and allocation made under the derivation principle.

Under statutory allocation, the Federal Government gets 52.68 per cent of the revenue shared; states, 26.72 per cent; and local governments, 20.60 per cent.

The framework also provides that Value Added Tax revenue be shared thus: FG, 15 per cent; states, 50 per cent; and LGs, 35 per cent. Similarly, an extra allocation is given to the nine oil-producing states based on the 13 per cent derivation principle.

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A breakdown of the N3.14tn showed that the committee allocated the sum of N610.36bn in January to the three tiers of government.

For the month of February, March, April and May, N619.85bn, N617.57bn, N616.19bn and N679.6bn were distributed by the committee.

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Further analysis showed that out of the N610.36bn shared in January, the Federal Government received N252.41bn, states N170.541bn, while the 774 Local Government Councils got N127.92bn.

In addition, the oil-producing states received N41.99bn based on the 13 per cent derivation principle.

Similarly, from VAT revenue shared during the month of January, the Federal Government received N15.04bn; states, N50.14bn; local government councils, N35.10bn.

For the month of February, the Federal Government received N257.68bn, states got N169.92bn, while local government councils got N127.72bn.

From the N617.56bn shared in March, the Federal Government received N257.75bn, states got N168.25bn, and Local Government Councils got N126.57bn.

For the oil producing states, the sum of N49.82bn was distributed to them based on the 13 per cent derivation principle.

For the month of April, a breakdown of the allocated N616.19bn showed that the Federal Government received N253.91bn, states got N168.05bn while the Local Government Councils got N126.27bn.

Similarly, the sum of N46.35bn was allocated to the oil-producing states based on the 13 per cent derivation principle.

From VAT revenue of N96.4bn, the Federal Government received N13.89bn representing 15 per cent; states got N46.31bn which was 50 per cent, while the Local Government Councils received N32.41bn or 35 per cent.

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For the N679.69bn shared in May, the Federal Government received N284.16bn, states N187.6bn and local government councils N140.99bn, while the oil-producing states received N40.436bn based on 13 per cent derivation principle.

From VAT revenue the Federal Government received N15.38bn, states N51.27bn while the local government councils got N35.89bn.

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