FAAC: FG, others shared N1.95tn in Q1-NEITI report

The federal, state, local governments and other statutory agencies have shared the total sum of N1.95 trillion in the first quarter of 2020, the Nigerian Extractive Industries Transparency Initiative (NEITI) report has revealed.

NEITI in its quarterly report, which was released on Monday stated that the Federation Accounts Allocation Committee (FAAC) disbursed N1.95 trillion to the tiers of governments and other statutory agencies in the first three months of 2020.

The breakdown of the disbursements in the report showed that N791.4 billion went to the federal government, N669 billion was shared by the states and about N395 billion was shared by the 774 local government areas.

It noted that the balance went to the North East Development Commission, the Excess Crude Account, Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS) and the Department of Petroleum Resources.

The report also noted that the first quarter 2020 FAAC disbursements were the highest first quarter disbursements since 2014.

“Total disbursements were N1.648 trillion in Q1, 2015, N1.132 trillion in Q2 2016, N1.411 trillion in Q1 of 2017, N1.938 trillion in Q1 2018, and N1.929 trillion in Q1 2019,” it said.

The report also examined FAAC disbursements in the Q1 of this year and made projections on the possible impacts of COVID-19 on government revenues.

“While total disbursements in Q1 2020 were slightly higher than Q1 2019 and Q1 2018, disbursements to the three tiers of government in Q1 2020 were slightly lower than Q1 2019 and Q1 2018.

“This is due to transfers to other accounts in Q1 2020 which were not done in either Q1 2019 or Q1 2018.

“These include allocations to the North East Development Commission and transfer to Excess Crude Account,” the report revealed.

It also explained that total FAAC allocations during the period under review comprised gross disbursements to the federal government, states, local government councils and 13 per cent derivation.

It also covered the cost of collections by the Nigerian Customs Service, the Federal Inland Revenue Service, the Department of Petroleum Resources and other allied handling charges.

The report noted that from the previous years, with the exception of 2018, the general trend since 2015 had been that total disbursements fell in the second quarter, before rising in the third quarter.

It also noted that with the COVID-19- pandemic, it was almost certain that total disbursements would fall in the second quarter of 2020.

On FAAC disbursements to states between January and March, it said that there was a wide disparity between states as Osun State with the lowest allocation received N6.44 billion and Delta State with the highest disbursement received N52.03 billion, a difference of 708 per cent.

The report also disclosed that Delta State’s net FAAC disbursements were higher than the combined total net disbursements of N50.67 billion of the six lowest receiving states.

It named the states to include Osun, Cross River, Plateau, Ogun, Ekiti and Gombe.

“Further analysis revealed that combined disbursements to four states of Delta, Akwa Ibom, Rivers and Bayelsa with the highest net FAAC disbursements was higher than the combined net disbursements for the 17 states with the lowest disbursements.

“The combined total net disbursement to these four states was N167.76 billion.

“This figure is higher than the combined total of N159.99 billion received by the 17 lowest receiving states.

“The states are Osun, Cross River, Plateau, Ogun, Ekiti, Gombe, Zamfara, Kwara, Nassarawa, Ebonyi, Taraba, Benue, Adamawa, Bauchi, Abia, and Kogi),” the report said.