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Nigeria Records Revenue Shortfall As N4.55tn Disbursed In 9months

A recent quarterly review publication by the Nigeria Extractive Industries Transparency Initiative (NEITI) has shown a revenue disbursement of N4.55 trillion to the country’s three tiers of government, with a revelation that revenues which accrued to the country in the first half of 2017 was 49percent lower than budgeted figures, e360 reports  

The total sum of N4.545 trillion was disbursed to Nigeria’s three tiers of government made up the Federal, State and Local government by the Federation Accounts Allocation Committee (FAAC) between January and September 2017. Nigeria has 36 states and the Federal Capital Territory as well as 774 local governments.

E360 learnt that out of this amount, N1.757 trillion was shared in the third quarter of 2017 as against the N1.377 trillion and N1.411 trillion disbursed in the second and first quarters of the year.

The information is contained in the latest Quarterly Review of the Nigeria Extractive Industries Transparency Initiative (NEITI), a publication which contains information and data on FAAC disbursements.

An analysis of the data showed that between January and September 2017, the federal arm of government received the highest allocation of N1.851.32 trillion, while the state and local governments received N1.509 trillion and N913.8 billion respectively.

Although it revealed that allocations to the states in the first three quarters of 2017 were 42percent lower than the states budgetary requirements, the Review which based its analysis on data obtained from FAAC, National Bureau of Statistics, Federal Ministry of Finance and the Budget Office of the Federation, however, noted that the upward trend in the FAAC disbursements in the third quarter are encouraging signs which if sustained will improve government expenditures, boost economic activities and move the country further away from recession.

The publication further showed that the sum of N271.78 billion went to the Department of Petroleum Resources (DPR), the Nigeria Customs and the Federal Inland Revenue Service (FIRS) as cost of revenue collections.

It also showed that Nigeria’s revenues in the first half of 2017 were about 49percent lower than budgeted figures. While the government projected N5.368 trillion revenue flows in its 2017 Fiscal framework for the first six months of the year, actual inflows were N2.712 trillion. The government had projected that the non – oil sector would outperform the oil sector, but data showed that the oil sector performed better by as much as 41percent in revenues generation raking in N1.587 trillion as against N1.125 trillion for the non-oil sector.

Comparing government’s earnings in 2017 to that of 2016, a further analysis of the report showed that total revenues were higher in the first half of 2017 than the corresponding period of 2016 by 22percent.

It also indicated that all sources of oil revenues, with the exception of rents, recorded positive improvements in 2017 than 2016 first halves. The same goes for the non – oil sector revenues where Value Added Tax (VAT) was the largest contributor to the revenues with a 16percent increase over 2016 figures.

The report which however, observed that there was no revenue recorded from solid minerals and dividends from investments funded by FAAC despite the abundant solid minerals deposits in the country, also recommended that states aggressively raise their IGR in order to be able to actualize their budgets.

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