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‘Fed Govt, states, councils shared N3.88tr in six months
#1
‘Fed Govt, states, councils shared N3.88tr in six months’
• Shared N1.93tr in Q2
September 9, 2020


[/url][Image: Zainab-Ahmed-2-750x375.jpg]
[url=https://thenationonlineng.net/wp-content/uploads/2020/06/Zainab-Ahmed-2.jpg]






THE Federation Accounts AllocationCommittee (FAAC) has shared N3.879 trillion to the Federal Government, states, local government areas and other statutory recipients in the first half of this year.

A breakdown of the disbursements showed that N1.53 trillion went to the Federal Government, while the states got N1.29 trillion and the 774 local government areas received N771.34 billion

The information and data are contained in the latest edition of the quarterly review of the Nigeria Extractive Industries Transparency Initiative (NEITI) released yesterday in Abuja.

Its Director, Communications and Advocacy, Dr. Orji Ogbonnaya Orji, in a statement said the “NEITI Quarterly Review reports that the N1.53trillion received by the FG in H1 2020 was 4.28per cent lower than the N1.599 trillion it got in the first half of 2019 and 7.36per cent lower than the N1.652 trillion it received in the first half of 2018.”

The story is the same for the states and local government areas. “For states, a total of N1.298 trillion was disbursed in the first half of 2020. This was 2.8per cent lower than the N1.35 trillion disbursed in the first half of 2019, and 5.6per cent lower than the N1.375 trillion disbursed in the first half of 2020,” the report stated.

For local government areas, the first half disbursements were 2.64per cent and 3.04per cent lower than the corresponding disbursements for 2019 and 2018.

The report, however, notes that disbursements in Q2 2020 were 1.09per cent higher than total disbursements in Q2 2019 and 3.66per cent lower than the one for Q2 2018.

FAAC disbursements in the second quarter of 2020 stood at N1.934 trillion. This was made up of N739.2 billion to the Federal Government, N629.3 billion to state governments, and N375.4 billion to the 774 local government areas.

The report pointed out that the total FAAC disbursements in the second quarter of 2020 was slightly lower than the N1.945 trillion disbursed in the first quarter of 2020. This aligned with the projections made in the previous issue of the NEITI Quarterly Review, which projected lower FAAC disbursement in the second quarter.


The NEITI report attributed the 0.55per cent decrease in Q2 2020 to a couple of factors, namely: “Rebound in oil prices in the second quarter as a result of ease of lockdowns by countries across the world and the adjustment of the official exchange rate by the CBN from N307/$1 to N360/$1 in March resulting in higher naira disbursements.”

The report also said FAAC disbursements in the first and second quarters of 2020 were very volatile, with the difference in total disbursements between months ranging between N58.9 billion and N199.3 billion.

 
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