Home Money Allocation to three tiers of government drops to N547.31bn in June 2020

Allocation to three tiers of government drops to N547.31bn in June 2020

President Muhammadu Buhari presiding over virtual FEC meeting at the State House, Abuja-Photo credit: Presidency

SAT, SEPT 05 2020-theG&BJournal- Total sum of N547.31bn was disbursed to the three tiers of government in June 2020 from the revenue generated in May 2020 by the Federation Account Allocation Committee (FAAC), the third straight month of significant drops.

The June amount is N58.89 billion less than what was received in May 2020. In May the drop was 22.4% less than the April disbursement of N780.9 billion.

The amount disbursed comprised of N413.95bn from the Statutory Account, N103.87bn from Valued Added Tax (VAT), N1.01bn from Excess Bank Charges Recovered for the Month and N28.47bn Exchange Gain Differences, according to latest data published by the National Bureau of Statistics (NBS).

The data shows that the Federal Government received a total of N219.80bn from the N547.31bn while States received a total of N152.47bn and Local Governments received N114.09bn. The sum of N37.02bn was shared among the oil producing states as 13% derivation fund.

Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N5.24bn, N7.09bn and N1.98bn respectively as cost of revenue collections.

Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N161.74bn was disbursed to the FGN consolidated revenue account; N3.90bn shared as share of derivation and ecology; N1.95bn as stabilization fund; N6.55bn for the development of natural resources; and N4.82bn to the Federal Capital Territory (FCT) Abuja.

Allocation to States as 13% share of derivation shows that Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers States received N431.167 billion (gross total N2.830 billion), N7,706 billion (gross total N10.282 billion), N6.060 billion (N8.327 billion gross total), N10,258,678,529.16 billion (N12.860 billion gross total), N983,104,043.32 billion (N3,379,166,993.91 billion gross total), N698,159,661.48 billion (N3,362,435,128.17 billion gross total), N956,812,096.51 billion (gross total N3,342,224,037.29 billion), N6,064,517,484.93 billion (gross total N8,828,085,180.27 billion) respectively.

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