South-South, North-West receive largest chunk of N619bn FAAC allocation in January
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IN January 2021, the Federation Account Allocation Committee (FAAC) disbursed the sum of N619.3 billion to the three government tiers from the revenue generated in December 2020, according to the National Bureau of Statistics (NBS).
South-South and North-West regions got the lion’s share, receiving 46.6 percent of the total allocation, The ICIR analysis shows.
Out of the six geo-political zones in the country, the South-South region received the largest share of the total allocation. The region received N50.4 billion, representing 27.76 percent of the total allocation to states. Next to the South-South is North-West, which got N34.21 billion (18.84 percent), followed by South-West- N29.48 billion (16.23); North-East- N23.97 billion; North-Central- N22.47 billion (12.38 percent), and the South-East- N21.06 billion (11.60 percent).
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The amount disbursed in January represents a 3.03 percent increase when compared with N601.1 billion disbursed in December 2020.
The revenue disbursed constitutes N437.26 billion from Statutory Account, N3.83 billion from Exchange Gain Difference, N6.90 billion from Distribution of FOREX Equalisation and N171.36 billion from Valued Added Tax (VAT).
The total amount received by the federal government was N218.0 billion, while N178.30 billion was shared to state governments. On the other hand, local governments got N131.79 billion. The sum of N32.83 billion was shared among oil-producing states as 13 percent derivation fund, the NBS report said.
It was revealed in the report that revenue-generating agencies such as the Nigerian Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Department of Petroleum Resources (DPR) received N6.99 billion, N10.43 billion and N6.36 billion respectively as cost of revenue collections.
Breakdown of the allocation showed that the sum of N146.33 billion was given to Nigeria’s federal government (FGN) consolidated revenue account. The sum of N3.69 billion was a share of derivation and ecology, while N1.85 billion was for stabilisation fund. Also, N6.20 billion was earmarked for the development of natural resources, just as N5.22 billion was given to the Federal Capital Territory (FCT) Abuja.