25 Oct 2016

36 States Share N143.6bn From Federation Account in September


Details of the revenue generated and shared among the 36 states of the federation in September has been released.
Minister of Finance, Kemi Adeosun
 
The 36 states got N143.6bn from the federation account in September as their share of distributable revenue generated for the month.
 
The breakdown shows in a report obtained by the News Agency of Nigeria, NAN, from a source at the office of the Accountant-General of the Federation in Abuja yesterday.
 
The funds are usually shared the following month; for example, revenue generated in January is shared in February; thus, the revenue shared was actually generated in August and shared in September 2016.
 
The key agencies that remit funds into the federation account are the Nigerian National Petroleum Corporation, NNPC, Federal Inland Revenue Service, FIRS, and Nigerian Custom Service, NCS.
 
At the Federation Account Allocation Committee, FAAC, meeting in September, federal, states and local governments shared N516bn as against the N530bn that was shared in August.
 
The report showed that the amount distributed included Gross Statutory revenue, Value Added Tax, exchange gain, N35bn excess Petroleum Profit Tax and 13 per cent derivation to oil producing states.
 
The oil producing states are Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers.
 
The report showed that before distribution, state liabilities were deducted. The liabilities include an external debt of N2.9bn, contractual obligations of N10.48bn and other deductions amounting to N16.9bn.
 
The report showed that other deductions covered national water rehabilitation projects, national agricultural technology support, payment for fertilizer, state water supply project, state agriculture project and National Fadama project.
 
To sum it up, here is what the 36 states got after all deductions were made. Abia N3.01bn, Adamawa N3.14bn, Cross River N2.04bn, Ekiti N2.16bn, Edo N2.54bn, Kaduna N4.23bn, Kano N5.2bn, Lagos N7.92bn, Rivers N9.05bn, and Zamfara, N2.58bn.
 
Also, Delta got N7.39bn, Anambra N3.43bn, Benue N3.37bn, Borno N3.9bn, Ebonyi N2.99bn, Enugu N3.34bn, Gombe N2.61bn, Nassarawa N2.92bn, Imo N2.97bn and Kogi N3.39bn.
 
Yobe got N3.29bn, TarabaN2.89bn, Sokoto N3.62bn, Plateau N2.31bn, Oyo N3.53bn, Osun N868.9m, Ondo N4.18bn, Ogun N2.16bn, Niger N3.49bn and Kebbi N3.36bn.
 
The rest are, Katsina N4bn, Bayelsa N7.6bn, Bauchi N3.52bn, Jigawa N3.82bn and Kwara N2.77bn.
 
The report also showed that the Federal Capital Territory got N4.7bn from the Federal Government’s share of the distributable revenue.
 
The FAAC committee is made up of Commissioners of Finance and Accountants-General from the 36 states of the federation; Accountant General of the Federation, and representatives from NNPC.
 
Others are representatives from the FIRS; NCS; Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC, 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 to the three tiers of government under three major components.
 
These components are the statutory allocation, Value Added Tax distribution and allocation made under the derivation principle.

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