Lagos, Kano receive biggest shares of N696.18bn July federation account allocation
September 22, 20201.5K views0 comments
By Charles Abuede
Lagos, Kano, Katsina and Oyo States were all smiling after the Federation Account Allocation Committee (FAAC) disbursed the sum of N696.18 billion to the three tiers of government for the month of July 2020 from the revenue generated in June 2020. This figure was N89.98 million higher than the amount shared in June 2020, data from the National Bureau of Statistics (NBS) show.
According to the data accessed by Business A.M., the total amount disbursed comprised of N474.53 billion from the statutory account, N128.83 billion from valued added tax (VAT), N42.83 billion from exchange gain differences and distribution of N50 billion from non-oil revenue for the month under review.
The federal government received a total of N266.13 billion out of the N696.18 billion shared, while the 36 states of the federation shared a total of N185.77 billion and local governments received N138.97 billion. The sum of N28.50 billion was shared among the oil-producing states under the 13 per cent derivation fund sharing formula.
Lagos State with 20 local governments got the lion share (N10.16 billion) of the total disbursement and was followed by Kano State, which has the largest number of local governments (44), with a total of N7.69 billion payment for the month of July. Similarly, Katsina and Oyo States were not left out from the table of states with the largest disbursements as they got N5.67 billion and N5.30 billion, respectivelym from the FAAC.
Conversely, Bayelsa was the least receiving state for this period with N1.57 billion; followed by Gombe State with N2.04 billion. Other states on the log of states with the lowest disbursements include Ebonyi (N2.21 billion), Nasarawa (N2.27 billion) and Ekiti State with N2.38 billion.
A further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N204.44 billion was disbursed to the FGN consolidated revenue account; N4.71 billion shared as share of derivation and ecology; N2.36 billion as stabilization fund; N7.91 billion for the development of natural resources; and N5.87 billion to the Federal Capital Territory (FCT) Abuja.
Also, the revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and the Department of Petroleum Resources (DPR) received N6.32 billion, N15.05 billion and N2.68 billion respectively as cost of revenue collections.