Delta, A/Ibom, Rivers, Bayelsa, Lagos Got Highest FAAC Allocations In H1

A review of net allocations to states by the Federation Accounts Allocation Committee (FAAC) shows that Delta, A/Ibom, Rivers, Bayelsa and Lagos states got the highest allocations of N101.19bn, N100.20bn, N85.01bn N77.14bn and N59.52 respectively, in the first half (H1) of 2018.

They were followed by Kano, Edo, Kaduna, Ondo and Borno which were respectively allocated N39.88bn, N32.88bn, N32.86bn, N30.96 and N30.04bn between January and June 2018.

On the other hand, Ogun, Zamfara, Ekiti, Cross River and Osun states got the least shares of N18.78bn, N18.64bn, N17.92bn, N17.13bn and N10.24bn respectively in the first six months of this year.

The analysis is contained in the latest edition of the NEITI Quarterly Review published by the Nigeria Extractive Industries Transparency Initiative (NEITI).

The NEITI Quarterly Review also looked at the deductions made from the allocations to the states and identified five states with the lowest deductions as a percentage of disbursements. They include Anambra (2.89%), Yobe (2.93%), Jigawa (3.96%), Enugu (6.72%) and Nassarawa (6.74%). In the same vein, states with the highest deductions as percentage of disbursements were Plateau (33.48%), Ogun (38.43%), Zamfara (41.55%), Cross River (54.53%) and Osun (141.79%).

Also worthy of note in the NEITI Report is the significant increase in VAT disbursements during the period under review. VAT disbursements increased by 35percent between the first quarter of 2015 and the second quarter of 2018.

“It is interesting that VAT has been generally increasing over time. This bodes well for the government’s efforts at increasing revenue from non-oil sources,” the report stated.

While expressing hope about increased revenues to governments from both oil and non-oil sectors, the report cautioned that the volatile and unpredictable nature of government revenues will continue to make planning difficult for all tiers of government and increase difficulties in implementing their budgets. It therefore, highlighted the need to place priority attention to internally generated revenues.

According to NEITI, the report is part of its contribution to the advancement of citizens education and enlightenment on revenues disbursed to the three tiers of government from the Federation Account.

It then behooves on citizens to use the report to ask informed questions and demand accountability from leaders elected to manage resources in trust for the people.

Will private management of Nigeria's refineries be a success story?

Subscribe To Newsletter

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top