Nigeria: FG, States, LGAs Shared N2.28trn In Q3 2018

Nigerian President, Muhammadu Buhari

Revenue disbursements by the Federation Account Allocation Committee (FAAC) to the three tiers of government has witnessed a steady increase in three consecutive quarters of this year with N2.28 trillion shared in third quarter (Q3) of 2018, a report has shown

A breakdown of the report shows that the Federal government received the highest sum of N904.8 billion, followed by states, which received N718.5 billion and Local governments (LGAs) receiving the lowest disbursements of N432.1 billion.

This information is contained in the latest edition of the NEITI Quarterly Review released in Abuja, Sunday.

From the NEITI Review, “Total FAAC disbursements in the third quarter of 2018 amounted to N2.28 trillion representing a 17.6percent increase over the N1.938 trillion disbursed in the first quarter of 2018 and 13.5percent higher than the N2.008 trillion disbursed in the second quarter.’’

The Review notes that “It is interesting that with the exception of July, the lowest amount disbursed so far in 2018 is higher than disbursements in all other months in 2016 and 2017”.

A breakdown of the disbursed sums for 2016, 2017 and 2018 shows that the disbursements in the third quarter of 2018 (N2.28 trillion) were 31percent & 18percent higher than disbursements in the third quarters of the last two years.

NEITI also reports that the last time total disbursements exceeded the N2.5trillion mark was in the second quarter of 2014 (N2.510 trillion).

Further analysis of the increases as reported by the NEITI Quarterly Review shows that the federal government’s receipt of N904.8 billion in the third quarter of 2018, was 11.3percent and 7.8percent higher than the amounts received in the first (N812.8 billion) and second (N839.5 billion) quarters of 2018 respectively.

“The amount disbursed to states represented an increase of 5.1percent over the N683.5 billion disbursed in the first quarter, and an increase of 3.8percent over the N692.1 billion disbursed in the second quarter. For LGAs, the amount received was 9.8percent and 7.5percent higher than the respective amounts of N393.4 billion and N402.1 billion received in the first and second quarters,” the Review disclosed.

On a year-by-year analysis, NEITI reveals that the increase to third quarter disbursements to states in 2018 were the highest when compared to 2016 and 2017 figures disbursed to other federating units.

A breakdown of the figures showing the level of growth indicates that total disbursements to states in the third quarter of 2018 came to N718.5 billion, representing a growth of 40.1percent and 22.5percent over disbursements in the third quarters of 2016 (N512.7 billion) and 2017 (N586.6 billion) respectively.

“For the LGAs, disbursements in 2018 Q3 totalled N432.1 billion. This figure was 33.2percent higher than the N324.3 billion disbursed in 2016 Q3, and 18.7percent higher than the N324.3 billion disbursed in 2017 Q3,” the report showed.

According to the total disbursements to the federal government in the third quarters of 2016, 2017 and 2018 were respectively, N697.9 billion, N752.7 billion, and N904.8 billion indicating that in 2018 Q3, the federal government received 29.7percent higher disbursements than 2016 Q3, and 20.2percent higher disbursements than 2017 Q3”.

The review further disclosed that total net FAAC disbursements to states in the first nine months of 2018 ranged between N16.41 and N150.59 billion, with Osun and Delta states receiving the lowest and highest amounts respectively.

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