The Federation Accounts Allocation Committee shared a total sum of N2.27tn among the three tiers of government in the first five months of this year.
An analysis of the FAAC distribution by our correspondent in Abuja on Friday also showed that the N2.27tn distributed between January and May this year represented an increase of N600bn over the N1.69tn, which the committee allocated to the federal, state and local governments in the corresponding period of 2016.
The committee, headed by the Minister of Finance, Mrs. Kemi Adeosun, is made up of commissioners of finance from the 36 states of the federation; the Accountant General of the Federation, Mr. Ahmed Idris; and representatives of the Nigerian National Petroleum Corporation.
Others are representatives of the Federal Inland Revenue Service; Nigeria Custom Service; Revenue Mobilisation, Allocation and Fiscal Commission; as well as the Central Bank of Nigeria.
The Federation Account is currently being managed on a legal framework that allows funds to be shared under three major components of statutory allocation, Value Added Tax distribution and allocation made under the derivation principle.
Under statutory allocation, the Federal Government gets 52.68 per cent of the revenue shared; states, 26.72 per cent; and local governments, 20.60 per cent.
The framework also provides that VAT revenue be shared thus: Federal Government, 15 per cent; states, 50 per cent; and local governments, 35 per cent.
Similarly, extra allocation is given to the nine oil producing states based on the 13 per cent derivation formula.
A breakdown of the N2.27tn shared in the first five months of this year showed that in January, the three tiers of government got N430.16bn, out of which the Federal Government took N168bn; states, N114.28bn; and local governments, N85.4bn.
In February, the federation generated N514bn, out of which the Federal Government’s share was N200.6bn; the states, N128.4bn; and local governments, N96.52bn.
However, in March, revenue generation dipped to N466.9bn. From this amount, the Federal Government got N180.5bn; state governments, N116.5bn; and local governments, N87.5bn.
The allocation declined further by N52.07bn from N467.8bn in March 2017 to N415.73bn in April, with the Federal Government receiving N163.89bn; states N117.59bn; while the local government councils got N87.77bn.
In the month of May, the committee shared the sum of N462.4bn among the three tiers of government as statutory allocation, with the Federal Government receiving N147.7bn; states, N74.9bn; and local government councils, N57.8bn.
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