…FG, others share N6.2tr statutory allocation funds in 2017***
Gross inflows into the Federation Account have amounted to N6.14tn in 12 months, data obtained by FBNQuest Research have shown.
In the 12 months through to September 2017, the gross flows into the Federation Account amounted to N3.51tn from oil revenue and N2.63tn from non-oil revenue, a report by the research firm stated.
FBNQuest said, “Over the period, oil revenue was the higher of the two in 10 months, and non-oil revenue in just two months. The gap was smaller in the 2016 calendar year, when oil revenue was N2.7tn and non-oil revenue was N2.24tn.
“It widened in the more recent period because the recovery in oil output pushed up oil revenues considerably, especially in July, August and September. Diplomacy in the Niger Delta has paid off for the Federal Government.”
According to the research and investment advisory firm, a similar conclusion should be drawn from the monthly payouts by the Federation Account Allocation Committee, of which the latest covered the distribution of revenues collected in November.
The increase since mid-year, the firm said, was largely attributable to the improvement in average crude output to 1.87 million barrels per day in Q2 2017 and 2.03 mbpd in Q3.
The research firm said the CBN data captured were not to be confused with the Federal Government revenue collection, which the Medium-Term Expenditure Framework 2018-20 projects at N5.65tn for 2018.
The firm said, “The new flows would suggest that non-oil revenues are lagging some way behind budget. However, we flag the interim data (for the FGN only) for H1 2017 from the Office of the Accountant General of the Federation. These show oil, non-oil and Federal Government independent receipts are all well behind budget for the period but also substantial unexpected contributions from other sources will offset the disappointment.
In the meantime, the Federal Government, 36 states and the 774 local government shared N6.2 trillion as statutory allocation funds in 2017.
Vanguard analysis of the Federation Account Allocation Committee (FAAC) monthly disbursement report by the National Bureau of Statistics (NBS) revealed that the Federal Government received the largest share N2.6 trillion or 41.9 percent while the 36 states received N1.7 trillion or 27.4 percent.
The 774 local government received N1.2 trillion or 19.4 percent. The three tiers of government received the highest allocation of N652 billion in July, while the lowest allocation of N418.82 billion was received in May. Meanwhile, the National Bureau of Statistics (NBS), yesterday, released the FAAC’s disbursement for December 2017, which showed that the three tiers of government received N609.96 billion during the month.
The report stated: “The Federation Account Allocation Committee disbursed the sum of N609.96billion to the three tiers of government in December 2017 from the revenue generated in November 2017.
The amount disbursed comprised of N529.53billion from the Statutory Account and N80.43billion from Valued Added Tax (VAT). “Federal government received a total of N259.81billion from the N609.96billion shared. States received a total of N164.51billion and Local governments received N124.09 billion. The sum of N43.21billion was shared among the oil producing states as 13 percent derivation fund.
“Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.74bilion, N7.95billion and N3.65billion respectively as cost of revenue collections.”
The report further stated:”Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N223.56billion was disbursed to the FGNs consolidated revenue account; N4.71billion shared as share of derivation and ecology; N2.36 billion as stabilization fund; N7.92billion for the development of natural resources; and N5.45billion to the Federal Capital Territory (FCT) Abuja.”
Punch with additional report from Vanguard