Economy

FAAC: FG, states, LGAs share N1.95 trn in Q1 2020

The Federation Accounts Allocation Committee (FAAC) has shared N1.95 trillion among the three tiers of government in Nigeria namely: Federal, States, Local Government areas as well as other statutory agencies in the first quarter (Q1) of 2020.

A breakdown of the disbursements shows 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.

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

These pieces of information and data are contained in the latest edition of the Quarterly Review by Nigeria Extractive Industries Transparency Initiative (NEITI) released in Abuja.

Director, Communications and Advocacy, Dr Orji Ogbonnaya Orji, disclosed this in a statement Monday.

The NEITI report also notes that the Q1 2020 FAAC disbursements are the highest first quarter disbursements since 2014. “Total disbursements were N1.648 trillion in Q1 2015, N1.132 trillion in Q1 2016, N1.411 trillion in Q1 2017, N1.938 trillion in Q1 2018, and N1.929 trillion in Q1 2019,” the publication stated.

The review examined FAAC disbursements in the first quarter 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 review stated.

The NEITI Quarterly Review explained that total FAAC allocations during the period under review comprised of gross disbursements to the Federal Government, States, Local Government Councils and the 13% Derivation. It also covered cost of collections by the Nigerian Customs Service, the Federal Inland Revenue Service, the Department of Petroleum Resources and other allied handling charges.

NEITI 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 quarters, before rising in the third quarters. It also noted that with the COVID-19- pandemic, it is almost certain that total disbursements will fall in the second quarter of 2020. (The Nation)

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