A new report by Economic Confidential, Nigeria’s intelligence economic magazine, has disclosed that the Federal Government, 36 states and the 774 Local Government Councils (LGCs) in Nigeria shared a total of N8 trillion from the Federation Account in 2018 despite the shut-ins in several oil installations during the period.
The allocations were made after the monthly meetings of the Federation Account Allocation Committee (FAAC) in 2018.
The sources of revenue flow into the Federation Account are mainly agencies of the Federal Government with little or no contributions from state or local government councils.
While the Federal Government and its agencies under the administration of President Muhammadu Buhari, received a total of N3.48 trillion, the other tiers – states and LGCs shared a total sum of N4.5 trillion in 2018. Meanwhile, in 2017 the Federal Government and its agencies received N2.5 trillion while the other tiers of government shared N3.3 trillion.
In its annual detailed investigative report with a table of figures, Economic Confidential disclosed that Delta ranked first among the state recipients, as the highest recipient of gross allocation with a total sum of N285 billion in the 12 months of 2018.
It is followed by Akwa Ibom State with N272 billion; Lagos – N260 billion; Rivers – N237 billion and Bayelsa – N192 billion.
The five states got over a quarter (25 per cent) of the total allocation for states and LGCs in Nigeria in 2018.
Among the 10 highest recipients from the Federation Account in 2018 included Kano State which got N183 billion; Katsina – N138 billion; Oyo – N131 billion; Kaduna –N131 billion and Borno State – N122 billion.
The report further disclosed that Edo and Ondo, which are oil-producing states got N112 billion and N108 billion respectively while another state in the South-South, Cross River State, merely received N91 billion.
The Economic Confidential gathered that factors that influence allocations to states and LGCs from the Federation Account include population, derivation, landmass, terrain, revenue effort, school enrolments, health facilities, water supply and equality of the beneficiaries. The revenue generating agencies to the Federation Account are the Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS) and Department of Petroleum Resources (DPR).