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The Federation Account Allocation Committee (FAAC), disbursed the sum of N655.18 billion to the three tiers of government in January 2018 from the revenue generated in December 2017, representing a 7.41 per cent increase compared to December 2017, according to the National Bureau of Statistics (NBS).
The amount disbursed comprised of N538.51 billion from the statutory account and N83.96 billion from Valued Added Tax (VAT). Also N14.713 billion and N16.055 billion were distributed as FOREX Equalisation while excess bank charges of N1.938 billion recovered was also distributed.
Foreign Exchange Equalization Account is the section of a country’s central bank account which uses the country’s forex holdings to operate in the foreign exchange market in order to stabilize the country’s exchange rate.
“This increase is mainly driven by higher oil prices, rise in production and higher exchange rate compared to January last year,” Dolapo Ashiru, CEO, MegaCapital Financial Services Limited told BusinessDay.
BusinessDay calculations showed an increase of 52.31 per cent in FAAC allocation when compared with total disbursements of N430.16 billion in January 2017.
Also, State by state breakdown of the allocations saw Akwa-Ibom State receiving the highest total allocation of N16 billion, followed by Bayelsa State with a total allocation of N12 billion. Rivers State came third with a total allocation of N13 billion.
Federal government received a total of N278.73 billion from the N655.18 billion shared while the 36 states took a total of N175.55bn. The Local governments got N132.48 billion.
The sum of N51.74 billion was shared among the oil producing states as 13 per cent derivation fund.
Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.12 billion, N7.44 billion and N3.10 billion respectively, as cost of revenue collections.
Further breakdown of revenue allocation distribution to the Federal Government revealed that the sum of N240.98 billion was disbursed to the FGN consolidated revenue account; N5.06 billion shared as share of derivation and ecology; N2.53 billion as stabilization fund; N8.50 billion for the development of natural resources; and N5.83 billion to the Federal Capital Territory (FCT) Abuja.
DIPO OLADEHINDE
