FG, States, LGs, Others Share N2.273 Trillion In Third Quarter 2019

  • FAAC disbursements hit N2 trillion in third quarter of 2019, first time since Q4 2018.
  • Aggregate FAAC disbursement in first three quarters of 2019 is N6.115 trillion.
  • Delta State leads, Osun takes last in disbursements to states.
  • Combined disbursements to 4 highest receiving states, all in South-South, higher than combined total disbursements to 14 lowest receiving states.

Federation Account Allocation Committee (FAAC) disbursed N2.273 trillion to the three tiers of government and other statutory recipients between July and September this year.

 

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.

These information and data are contained in the latest edition of the Quarterly Review by the Nigeria Extractive Industries Transparency Initiative (NEITI). The Quarterly Review, released in Abuja today focused on FAAC disbursements in the third quarter of 2019. It used data obtained from FAAC and the National Bureau of Statistics.

The Report noted that for the first time since the fourth quarter of 2018, total FAAC allocations exceeded N2 trillion in a quarter. Combining this with disbursements in previous quarters showed that FAAC disbursements exceeded N2 trillion in four of the last six quarters. “The last time this happened was in the third quarter of 2014. This is a big improvement compared to N886.48 billion recordedin 2016 Q2. However, it is still lower thanN2.607 trillion of 2013 Q1”, the review furthernoted.

A breakdown of the N2.273 trillion disbursed in the last quarterof 2019 showed that the Federal Government (FG) received N920.2 billion, while the states and local government received N724.16 billion and N44.19 respectively.

A closer examination showed that the amount received by FG in the third quarter of 2019 was 15.6% higher than the N795.84 billion itreceived in the second quarter. It was also 14.6% higher than the N803.13 billion itreceived in the first quarter of the same year.

For states, the amount received during the third quarter of 2019 was 9.6% higher than the N660.2 billionreceived in the second quarter, and also 7.3% higher than the N675.2 billion received in the first quarter of the same year.

The amount received by thelocal governments for the same period was 12.02% higher than the N393.95 billion received in the second quarter and 10.73% higher than the N398.44 billion received in the first quarter.      

Further analysis showed that aggregate FAAC disbursements for the first nine months of 2019 were N6.115 trillion. The breakdown 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 in the third quarter of 2019, the NEITI Quarterly Review noteda wide disparity between Osun State (which received the lowest amount of N6.89 billion) and Delta State that got the highest disbursement of N54.88 billion. This implied that Delta State received almost eight times what Osun State got.

The Review also showed that the 4 states with the highest net disbursements, which were all in the South-South geopolitical zone, received a combined total of N173.65 billion. This was more than the combined total of N164.58 billion received by the 14 states with the lowest disbursement.

On direct deductions from States’ allocations in the third quarter of 2019, Yobe State had the lowest deductions of N593.03 million while Lagos recorded the highest deduction of N12.09 billion.

The NEITI Review also disclosed that “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 Review furthernoted that themajority of the states had received below 30% of their annual budgets in FAAC disbursements after the ninth month of 2019. Net FAAC disbursements being below 30% in most states is worrying, because most states depend on FAAC disbursements for at least 80% of their revenues.

The implication, according to the Review, is that most states’ budgets will be underfunded this year. The possible exceptions are Lagos, Rivers and Ogun States, which have considerable history of high internally generated revenue (IGR).

Find below thedetails ofFAAC States Net Disbursements and Deductions (Q1 – Q3 2019):

States FAAC Net Disbursements Q1 - Q3 2019 (N BILLION) Deductions from FAAC Q1 - Q3 2019 (N BILLION) 2019 budget (N BILLION) FAAC as a % of Budget (%)
Abia 39.35 4.76 140.20 28.07
Adamawa 36.29 4.59 244.00 14.88
Akwa Ibom 128.28 10.05 672.98 19.06
Anambra 40.55 1.51 157.17 25.80
Bauchi 39.58 9.09 198.85 19.90
Bayelsa 102.43 12.89 299.00 34.26
Benue 40.71 5.09 199.70 20.39
Borno 46.30 3.29 144.70 32.00
Cross River 27.28 13.59 1.04 2.62
Delta 163.58 11.12 390.30 41.91
Ebonyi 33.44 3.47 188.40 17.75
Edo 48.58 5.52 183.70 26.45
Ekiti 31.07 5.87 129.90 23.92
Enugu 39.08 2.69 109.19 35.79
Gombe 30.81 7.55 122.40 25.17
Imo 41.58 8.60 276.82 15.02
Jigawa 44.26 1.94 160.14 27.64
Kaduna 50.35 3.99 157.45 31.98
Kano 61.89 4.94 219.97 28.13
Katsina 47.56 3.20 202.40 23.50
Kebbi 39.79 3.05 151.00 26.35
Kogi 39.21 5.28 146.74 26.72
Kwara 31.94 4.79 157.80 20.24
Lagos 88.48 32.75 852.32 10.38
Nassarawa 33.81 3.55 90.17 37.50
Niger 42.13 5.61 164.00 25.69
Ogun 28.87 11.10 400.00 7.22
Ondo 43.44 6.57 193.90 22.40
Osun 16.98 21.37 154.40 11.00
Oyo 42.62 7.67 285.15 14.95
Plateau 32.92 9.55 153.50 21.45
Rivers 115.95 7.98 480.41 24.14
Sokoto 41.68 3.04 169.65 24.57
Taraba 34.99 4.00 146.73 23.84
Yobe 38.83 1.33 91.64 42.37
Zamfara 31.27 9.53 135.43 23.09

NEITI Quarterly Review is designed to provide timely information and data to support citizens’ engagement, advocacy, constructive debate and information sharing for tracking the utilization of extractive revenue funds for purposes of development. The publication, released today, is the 14th issue of the Review, which started in late 2016 as one of NEITI’s new policy and advocacy instruments.

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