FG, States, LG share N8.15trn in 2019 – NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) said the Federal, States, Local Governments and other statutory recipients by the Federation Accounts and Allocation Committee (FAAC) shared N8.15 trillion  in 2019.

NEITI disclosed this on it quarterly report released in Abuja, on Thursday.

It said the figure is N377billion or 4.42 per cent lower than the 2018 figure of N8.524 trillion, but N1.728 trillion or 26.92 per cent higher than the total disbursements of N6.419 trillion made in 2017.

Out of this amount, it said the Federal Government received N3.37 trillion, representing 41.4 per cent of total disbursements; the 36 states got N2.761 trillion (33.9%) while the 774 local governments shared N1.649 trillion (20.2%) of the total disbursements.

The publication which examined FAAC Disbursements to the Federal, States and Local governments in 2019, compared the disbursements of the previous years and made projections for the year 2020.

It noted that in line with the revenue sharing formula, the FG received the highest disbursements from FAAC while local governments got the lowest.

It further disclosed that revenue shared to the three tiers of government in the two previous years 2018 and 2017 followed the same pattern.

“For 2018, total disbursements to FG, states, and local governments were N3.483 trillion, N2.850 trillion, and N1.667 trillion, respectively.

“For 2017, disbursements were N2.563 trillion to FG, N1.859 trillion to states, and N1.502 trillion to local governments,” it said.

A comparative analysis of the disbursements made by FAAC to the federation in 2019 as against the sharing in the two previous years of 2017 and 2018 shows that the total disbursements to the Federal Government in 2019 were 3.08 per cent.

This, it said was lower than the disbursements in 2018, but 31.69 per cent higher than those in 2017.

Also, while the disbursements to the states in 2019 were 3.12 per cent lower than those in 2018, they were 48.54 per cent higher than those in 2017.

It noted that the scenario was the same for the local governments in 2019, as their disbursements were 1.08 per cent lower than those in 2018, but 9.75 per cent %l higher than what was recorded in 2017.

The NEITI Quarterly Review compared total FAAC disbursements between 2013 and 2019 and revealed that the total disbursements fell in three consecutive years from 2013 to 2016 and increased until 2018.

However, the report revealed that increase in total disbursements stopped in 2019, as there was a decrease in 2019 over 2018 figures.

The Report further disclosed that over the seven-year period (2013 – 2019), 2013 recorded the highest disbursements of N9.742 trillion, followed by 2014 (N8.595trillion).

” 2018 came third with N8.524 trillion while 2019 had the fourth highest disbursements of N8.147 trillion.

“During the same period (2013-2019), 2019 witnessed the lowest percentage decline in disbursements (-4.42%) while 2018 had the highest percentage increase of 32.8 per cent,” it added.

The report identified a general rising trend in FAAC disbursements from the beginning of the year till about August 2019 when disbursements either fell slightly or remained relatively stable.

These figures, the report noted, “highlighted the volatile nature of government revenue in Nigeria owing to high fluctuations in oil prices.

It added that central feature of these figures was that disbursements were higher in the second half of 2019 than the first half,” it said.

It also disaggregated disbursements to the various tiers of government.

The figures presented in the review show a wide disparity between net disbursements received by states.

According to the report, Osun and Cross River states have the lowest allocation of N24.14billion and N36.22Billion.

It noted that Delta State received the highest disbursement of N218.58 billion.

“Put differently, if we assume that the net disbursements received by both states were fairly constant, then, the amount received by Delta State in 2019 alone can be used to cover disbursements to Osun State in nine years”, the Report further explained.

it further stated that three states received less than N40 billion, nine states received between 40 billion and 49billion while fourteen states received between 50billion and 59billion respectively.

” Four states: Borno, Katsina, Edo and Kaduna got between 60 and 69billion and Kano State with N82.34 billion.

” Four states of the Niger Delta Region plus Lagos were among the big league of states that received over N100 billion from FAAC allocations.

“This is “Owed largely to the effects of 13 per cent derivation, ” it said.

The NEITI publication also highlighted other important aspects of the FAAC disbursements during the period under review.

These include significant increases in net disbursements to states between 2017 and 2018, in which Ebonyi State recorded the lowest percentage increase in net disbursements in 2017 while the highest percentage increase occurred in Osun State with 118.8 per cent increase in 2018.

For most states (28 of them), it said that the percentage increase of the 2018 disbursements over the 2017 allocations were between 30 and 49 per cent.

On the deductions from states’ allocations, the NEITI Quarterly revealed that Yobe State had the lowest deductions of N2.16 billion while Lagos State had the highest deductions of N44.45 billion.

According to that Report,It is striking that the two states with the lowest net disbursements (Osun and Cross River) has the highest deductions (N27.19 billion and N18.55 billion respectively) after Lagos State.

“However, deductions for most states (22 of them) were below N10 billion,” It added.