Abuja — The Nigeria Extractive Industries Transparency Initiative, NEITI, Thursday, stated that N8.15 trillion was shared between the Federal, states, local governments and other statutory recipients by the Federation Accounts and Allocation Committee, FAAC, in 2019.
In a statement in Abuja, Director, Communications and Advocacy of NEITI, Dr. Ogbonnaya Orji, stated that the figure is N377billion or 4.42 per cent lower than the 2018 figure of N8.524 trillion, but N1.728trillion or 26.92 per cent higher than the total disbursements of N6.419 trillion made in 2017.
Out of this amount, he 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 per cent of total disbursements, while the 774 local governments shared N1.649 trillion, 20.2 per cent of the total disbursements.
He explained that the information and data are contained in the latest edition of the NEITI Quarterly Review released in Abuja today by the Nigeria Extractive Industries Transparency Initiative.
He 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,” he noted.
According to Orji, 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 lower than the disbursements in 2018, but 31.69 per cent higher than those in 2017.
Also, he added that while 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, noting 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 higher than what was recorded in 2017.
He said, “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.
Thereafter, total disbursements increased until 2018. However, the 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%.
“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. A central feature of these figures was that disbursements were higher in the second half of 2019 than the first half.”
Furthermore, quoting the report, Orji stated that Osun and Cross River states had the lowest allocation of N24.14 billion and N36.22 billion, while Delta State received the highest disbursement of N218.58 billion.
He said, “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.
“Three states received less than N40 billion, nine states received between 40 billion-49 billion while 14 states received between 50 billion to 59 billion respectively. Four states: Borno, Katsina, Edo and Kaduna got between 60-69billion 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 N100billion from FAAC allocations. The Report noted that this is “Owed largely to the effects of 13% derivation.”