FAAC Disbursement: Delta States’ Allocation Higher Than Six States Combined In H1 2020

The total net Federation Accounts Allocation Committee (FAAC) disbursements and deductions for states in the First Half (H1) 2020, shows that Delta State received the highest allocation of N100.81 billion from January to June this year.

The data is contained in the latest edition of the quarterly review of the Nigeria Extractive Industries Transparency Initiative (NEITI) released Tuesday, in Abuja.

According to the report, total net disbursements of N100.81 billion received by Delta State was higher than the combined total net disbursements of N99.47 billion received by six states – Osun, Cross River, Plateau, Ogun, Gombe and Ekiti.

The NEITI Quarterly Review observed other wide disparities; for instance, Osun State had the lowest net disbursement of N13.13 billion, compared to Delta’s net disbursement of N100.81 billion. “This implies that Delta State received seven times the disbursement that Osun State received within the period under review,” the report noted.

Recall that a similar trend played out in the first half of 2019 where Delta State received the highest allocation of N108.7 billion and Osun State received the lowest of N10.09 billion.

A further analysis of the report showed that the combined total net disbursements of N321.29 billion received by the four highest receiving states of Delta, Akwa Ibom, Rivers, and Bayelsa were higher than the combined total net disbursements of N314.08 billion received by 16 states – Osun, Cross River, Plateau, Ogun, Gombe, Ekiti, Zamfara, Kwara, Nassarawa, Ebonyi, Taraba, Benue, Adamawa, Ondo, Bauchi, and Abia.

The disparity in the allocation is as a result of the 13percent derivation to oil producing states, applicable in the revenue sharing formula.

The information contained in the NEITI Quarterly Review followed analysis of disbursements by FAAC in the second quarter and first half of 2020 using data from the National Bureau of Statistics (NBS) and NEITI’s data generated from attendance at FAAC meetings.

The Quarterly Review is designed to provide timely information and data on FAAC disbursements to the three tiers of government. The publication is a tool to support citizens’ education, enlightenment, advocacy, and promote constructive debates in tracking the utilization of the funds for purposes of development.




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