A new report by the Economic
Confidential has disclosed that the Federal Government, 36 states and the 774
local government councils in Nigeria shared a total sum of N8trillion from the
Federation Account in 2018 despite the shut-ins in several oil installations
during the period.
The allocations were made after
the monthly meetings of the Federation Account Allocation Committee (FAAC) in
2018.
The current sources of revenue
flow into the Federation Account are revenue collected by agencies of the
Federal Government with little or no contributions from states and local
government councils.
While the Federal Government and
its agencies under the administration of President Muhammadu Buhari received a
total sum of N3.48 trillion, the other tiers: states and local government
councils shared a total sum of N4.5 trillion in 2018.
Meanwhile, in 2017, the Federal
Government and its agencies had received N2.5 trillion while the other tiers of
government shared N3.3 trillion.
In its annual detailed
investigative report with a table of figures, the Economic Confidential said
that among the state recipients, Delta is ranked first as the highest recipient
of gross allocation with a total sum of N285bn in the twelve months of 2018.
It is followed by Akwa State
N272bn, Lagos N260bn, Rivers N237bn and Bayelsa N192bn. The five states
cornered over a quarter (25%) of the total allocation for the States and local
government councils in Nigeria in 2018.
Among the 10 highest recipients
from the Federation Account in 2018 included Kano State which got N183bn,
Katsina N138bn, Oyo N131bn, Kaduna N131bn and Borno State N122bn.
The report further disclosed that
Edo and Ondo which are oil-producing states got N112bn and N108bn respectively
while another state in the South-South, Cross River State merely received
N91bn.
Factors that influence
allocations to states and local government councils from the Federation Account
include: Population, Derivation, Landmass, Terrain, Revenue Effort, School
Enrolments, Health Facilities, Water Supply and Equality of the beneficiaries.
The revenue generating agencies
to the Federation Account are the Nigerian National Petroleum Corporation
(NNPC), Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS)
and Department of Petroleum Resources (DPR).
The revenues come from Export
Crude Sales, Domestic Crude Sales, LPG, NLNG, Petroleum Profit Tax (PPT),
Company Income Tax (CIT), Withholding Tax (WHT), Import Duty, Excise Duty,
Royalties, Gas Flared and miscellaneous oil revenue such as Oil Prospecting
License and oil Mining Licence.
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