Connect with us

Headline

Federal, states, LGs share N4.37trn FAAC allocations Jan-June 2023 – NEITI

Published

on

FAAC allocations

Last Updated on September 1, 2023 by Fellow Press

The three tiers of government – the Federal, States and Local Government Councils (LGs), shared a total of N4.37 trillion from the Federation Account as statutory revenue allocations between January and June 2023.

This is contained in the latest report by the Nigeria Extractive Industries Transparency Initiative (NEITI) on the Federation Account revenue allocations for the first half of the year.

Dr Orji Ogbonnanya Orji, Executive Secretary, NEITI, who announced the report on Thursday in Abuja, said total distributable FAAC allocations to the three tiers of government in first and second quarters (Q2) of 2023 stood at N2.32 trillion and N2.04 trillion respectively.

The NEITI quarterly review revealed that inflows into the Federation Account in Q2 of 2023 declined by 23 per cent which affected the distributable revenue which fell by 12 per cent when compared with the total revenue disbursed in the first quarter.

“Each tier of government received more than N1 trillion over the six-month period,” he said.

The report showed that a breakdown of the revenue receipts showed that the federal government received about N1.78 trillion, or 40.7 per cent, while the State governments received N1.5 trillion, or 34.5 per cent.

According to the report, the Local government councils received N1.08 trillion or 24.8 per cent of the total distributable revenue for the period.

It further disclosed that a comparative analysis of the total allocations on a year-on-year basis in the corresponding quarters of 2022 and 2023 showed that the distributable revenue of N4.366 trillion shared was higher by 16.7 per cent from about N4.05 trillion shared in 2022.

Consequently, it revealed that the allocation received by the federal government over the period under review increased by 19.8 per cent to N1.78 trillion in 2023, from the N1.48 trillion in the corresponding period in 2022.

Similarly, the report noted allocations to the State governments grew by about 11.2 per cent to N1.42 trillion in 2023 from N1.26 trillion in 2022, while allocations to the LGs rose by 16.8 per cent to N1.08 trillion in 2023, from N926 billion in 2022.

The increase in half-yearly allocations in 2023 was consistent with an upward trend from the previous period where the distributable revenue for the first half of the year rose by 16.7 per cent, from N3.47 trillion between January and June 2021 to N4.05 trillion in the corresponding period in 2022.

Also , allocations to the federal, states and LGs increased across board by 8.8 per cent 26.5 per cent and 14.2 per cent respectively.

However, compared to the same period in 2022, it said the report showed that FAAC distribution in Q2 declined in absolute value with total distributable revenue of N2.02 trillion being less by 13 per cent than about N2.16 trillion distributed in the second quarter of 2022.

It said further analysis of the disbursements to the states showed that Delta state received the highest allocation of N102.79 billion in the second quarter of 2023, followed by Akwa Ibom’s N70.01 billion, Rivers N69.73 billion, Lagos N60.64 billion and Bayelsa N56.34 billion.

It said the total disbursements to these five states (N359.5 billion), or 35.9 per cent of the total FAAC allocations, was more than the total allocations to the next 15 states (N349.3 billion).

It said the cumulative allocation to the five states was also more than the share of allocation to 19 other states put together, adding that the bottom 10 states received 17.3 per cent of the revenue shared in the second quarter of 2023.

According to the report, Nasarawa, Ebonyi, Ekiti, Gombe and Taraba states received the lowest allocations of N16.71 billion, N16.84 billion, N16.95 billion, N17.22 billion and N17.45 billion respectively.

It said four of the five states with the highest allocations, except Lagos, received a significant share of 13 per cent derivation revenue allocated to oil-producing states.

It said the total disbursements to these five states (N359.5 billion), or 35.9 per cent of the total FAAC allocations, was more than the total allocations to the next 15 states (N349.3 billion), while the cumulative allocation to the five states was also more than the share of allocation to 19 other states.

It added that the bottom 10 states received 17.3 per cent of the revenue shared in the second quarter of 2023.
It stated that the bulk of the revenues to the federation account came from remittances from the three main revenue-generating agencies.

It listed them as the Nigeria Upstream Petroleum Regulatory Commission, the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS).

These revenues, it explained that they came through earnings from the different revenue streams, including oil and gas royalties, petroleum profit tax, company income tax, value added tax and import and excise duties.

“Also, revenue remittances of about N1.84 trillion in Q2 2023 came from mineral and non-mineral sources, comprising of N809 billion, or 44 per cent from mineral revenue (mostly oil and gas) and N1.03 trillion, or 56 per cent from non-mineral sources.

The report further revealed a huge gap between revenue disbursements from the oil and gas and solid minerals sectors, pointing out that this was a reflection of the perennial underperformance of the latter over the years.

“In terms of debt service obligations and the impacts on states’ net allocations, the report showed that Lagos topped the list of 36 states with a total deduction of N9.03 billion in the second quarter of 2023, followed by Delta (N6.76 billion), Ogun (N6.10 billion), Kaduna (N5.63 billion), Osun (N5.60 billion and Imo (N5.51 billion).

“Jigawa, Anambra, Nassarawa, Kebbi and Enugu States had the lowest deductions of N1.16 billion, N1.29 billion, N1.45 billion, N1.51 billion and N1.88 billion respectively.

“The nine oil-producing states, according to the report, namely Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo and Rivers states received allocations relative to their share of the oil and gas as well as other minerals extracted from their domains,” it said.

It projected that with efficient, prudent management and utilisation of the savings of N3.6Trillion from subsidy payment in the first six months of 2023, Nigeria’s balance of payments would be boosted as demand which was served entirely by product importation would be curtailed.

It said the drop in demand would inadvertently, trigger a corresponding reduction in the dollar volume needed to pay for premium motor spirit (PMS), which constituted the largest single import product by value,” he said.

The report welcomed with high expectations, the unification and the floating of the exchange rate policy recently introduced to strengthen and stabilise the economy.

“With the average exchange rate of N713.69 to US$1, which is about 55 per cent higher than the rate of N460.52 to the dollar recorded during Q2 will significantly raise the value of export earnings remitted to the Federation Account by more than 50 per cent.

“Also earnings from the new exchange rate through exports will also increase the value of foreign capital inflows, including investments, loans and grants,” it recommended.

Also, the report urged the Central Bank of Nigeria to prioritise policies to stabilise the exchange rate to facilitate the effective implementation of the deregulation policy and stabilise foreign exchange-dependent inflows into the Federation Account.

Headline

Gunmen kill three while enforcing sit-at-home in Anambra communities

Published

on

Last Updated on June 19, 2024 by Fellow Press

Some gunmen, who were enforcing sit-at-home, have reportedly killed many people and injured others in two Anambra communities.

The gunmen invaded Nnewichi community in Nnewi north LGA and Nnobi community in Idemili south LGA, on Monday morning.

At Nnewichi community, the gunmen were said to have invaded a hotel after discovering that some persons were having a meeting there. The gunmen started shooting sporadically at the hotel premises, while destroying properties.

The assailants were said to have killed Oseloka Ubajiekwe, head of the vigilante group and chief security officer of the community, while he was attempting to wade off the attackers.
Those who sustained injuries have been taken to various hospitals in the state. At Nnobi community, the gunmen shot sporadically to scare away residents and engaged in gun duels with security operatives.

Confirming the attacks in a statement, Tochukwu Ikenga, Anambra police spokesperson, said only three persons, including a 22-year-old lady, have been confirmed dead.

“The commissioner of police, CP Nnaghe Obono Itam, has ordered an immediate manhunt operation on the armed men operating in a red Highlander jeep, who abducted a citizen in Nnewi by 1:30 pm yesterday 17/6/2024 and were trailed to Nnobi, where they engaged security operatives in a gun battle,” Ikenga said.

During the gun duel, one of the security operatives was fatally hit by the bullet and due to the indiscriminate shootings by the hoodlums in an attempt to escape the scene, the bullet also fatally struck two innocent passersby in the area.

“The police responding team at the scene recovered the bodies of the victims and took them to the hospital but regrettably, three of the victims including a 22-year-old lady were confirmed dead by the doctors on duty while two others are currently receiving treatment.”

Continue Reading

Headline

MKO Abiola’s children who couldn’t buy drugs have died in last 30 years

Published

on

Some Of My Siblings, MKO Abiola’s Children Who Couldn’t Afford Drugs Have Died In Last 30 Years – Abdulmumuni Abiola Laments

Abdulmumuni Abiola, one of the sons of late Chief MKO Abiola, has berated his elder brother, Kola Abiola, over the alleged mismanagement of their late father’s wealth and throwing the rest of the siblings into abject poverty.

Speaking in a podcast on Mic On with Seun Okinbaloye, Abdulmumuni lamented that Kola had mismanaged their late father’s wealth and sidelined him and other members of the family to the extent that in the last 30 years, some of Abiola’s children had died because they could not afford to buy medicine to treat and take care of themselves.

Asked if he blamed Kola for the manner in which things had gone and whether he believed the legacy of Abiola would have been properly sustained rather than it was now, Mumuni said, “I definitely do because he was in a better position, especially after the whole crisis.”

Speaking further, Abdulmumuni said, “First of all, if he listens to what my father said in the Will and does what he is supposed to do like every other one has done, there wouldn’t be a problem.

“We have lost so much. There are so much properties my father has in this country that we can never get by because people sit on it and they are using it to take care of their own families. The issue is, who is losing?

“It is our money that they used to buy those things. Those properties now cannot be bought with the same amount, with the kind of money that would be spent today. I’m talking about the silo in Lafia Agil in Kwara State – 20,000 metric tonnes Silo with 10,000 hectares of land. How much would be paid for that land now?

“It is so sad that your father was rich to a certain level and you cannot continue from where he stopped. I would like him to explain to me why exactly he has gone with this direction. It is like going down the deadened road and you are seeing the signs but you are still going.

“This is 30 years down the line. It is not like I waited for a year after my father died and started making these accusations. Abiola’s children who could not buy medicine to take care of themselves have died in this 30 years. This is sad and I’m sure my father will not be pleased about it. So, I am not pleased.”

He added, “I wake up in the morning and my phone is inundated with text messages of people who ask for help. How many people can I help? If I want to help somebody, I need to first help myself. It is important we do things the right way.”

Asked if he has spoken with Kola about his grievances, Mumuni said he is talking about the properties in Nigeria only.

He said, “You must understand that I’m talking about their properties in Nigeria only. This is not where Abiola has his wealth. Abiola had those companies in Nigeria just to help Nigerian people.

“They were losing money and they were building money. But he did this (established companies in Nigeria) because he knew they needed something to do so that they don’t pick up guns. He (Abiola) understood that.

“Abiola’s wealth was from outside this country. He was an accountant and when he was the state director of ITT, there was money that owed the company, when he was able to retrieve the money from the military government then, he went back to his masters in England.

“They wanted to offer commission but he asked them to give him shares. So, my father has shares.

“I told brother Kola when I got back that I don’t want to disturb him about the money outside Nigeria. That it is for him, he should do whatever he wants with it. But the ones in Nigeria, we will die there.”

Abdulmumuni said he had taken over Concord Newspaper but “at the time we took it, he took me to Kabiyesi Akiolu’s Palace to tell me why I should leave the place.”

Continue Reading

Facebook

Trending