OrderPaperToday – The three tiers of government and other statutory recipients shared a total sum N2.273 trillion from the Federation Account Allocation Committee (FAAC) in the third quarter of 2019, the Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed.
The information is contained in the latest edition of the Quarterly Review for the months of July – September, 2019.
According to the review, the disbursement was 18.79% higher than the N1.913 trillion disbursed in the second quarter of 2019 and 17.81% higher than the N1.929 trillion disbursed in the first quarter of the year.
A breakdown of the N2.273 trillion disbursed indicates that the Federal Government (FG) received N920.2 billion, while states and local government received N724.16 billion and N44.19 respectively.
Further analysis of the report showed the aggregate FAAC disbursement for the first nine months of 2019 was N6.115 trillion.
The breakdown also showed that between January and September 2019, the FG received a total of N2.519 trillion, while the states and the local governments received N2.059 trillion and N1.223 trillion respectively.
On disbursements to the states, Osun State received the lowest amount of N6.89 billion, while Delta State got the highest disbursement of N54.88 billion.
The review noted that the 4 states with the highest net disbursement are all in the South-South geopolitical zone, with a combined total of N173.65 billion. This is more than the combined total of N164.58 billion received by the 14 states with the lowest disbursement.
For direct deductions from states’ allocations in the third quarter of 2019, Yobe State had the lowest deduction of N593.03 million as Lagos State recorded the highest deduction of N12.09 billion.
“Combined FAAC disbursements for the first three quarters of 2019 – taken as a percentage of 2019 budgets – were above 30% in only seven states,” the report stated.
Furthermore, it disclosed that the majority of the states received less than 30% of their annual budgets in FAAC disbursements after the third quarter which means that most states’ budgets will be underfunded this year with the possible exceptions of Lagos, Rivers and Ogun States, due to their history of high internally generated revenue (IGR).