Among the highest recipients of Federation Account Allocation Committee (FAAC) allocations in the country, Akwa Ibom State is second having collected N272 billion from January to December, 2018.
This was contained in a report by Economic Confidential, an intelligence economic magazine, released on Tuesday, April 22, which stated that N8 trillion from the Federation Account was shared among the 36 states and the 774 local government councils in Nigeria last year.
Recall that in 2017, Akwa Ibom collected the highest share of N143.6 billion, showing an increase of 25 per cent from the Federation Account Allocation Committee (FAAC) disbursements, Nigeria Extractive Industries Transparency Initiative, NEITI, reported.
For 2018, Economic Confidential‘s report said Delta State is ranked first as the highest recipient of gross allocation with N285 billion; Lagos State is third with N260 billion, while Rivers and Bayelsa states that collected N237 billion and N192 billion respectively are fourth and fifth recipients of the allocations.
It is learnt that the five states received more than a quarter (25%) of the total allocation for the states and local government councils in Nigeria in 2018.
Straightnews gathered that the report listed such higher recipients as Kano State which got N183 billion, Katsina, N138 billion; Oyo, N131 billion; Kaduna, N131billion and Borno, N122 billion.
The report further indicated that Edo and Ondo which are oil-producing states got N112 billion and N108 billion respectively while Cross River State received a paltry N91 billion.
However, the lowest recipients were Kwara which got N81billion, followed by Ebonyi and Gombe states which received N76 billion each.
According to the report, the Federal Government and its agencies under the administration of President Muhammadu Buhari received N3.48 trillion; 36 States and 774 local government councils shared N4.5 trillion in 2018.
Meanwhile, the Federal Government and its agencies received N2.5 trillion while the two tiers of government shared N3.3 trillion in 2017.
It noted that the factors that influenced allocations to states and local government councils 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),” the report added.
According to the report, “revenues come from Export Crude Sales, Domestic Crude Sales, LPG, NLNG, Petroleum Profit Tax (PPT), Company Income Tax (CIT), Withholding Tax (WHT), Import Duty, Excise Duty, Royalties, Gas Flared and Miscellaneous Oil revenue such as Oil Prospecting License and Oil Mining Licence.”
“The current sources of revenue flow into the Federation Account are collected by agencies of the Federal Government with little or no contributions from state or local government councils,” the report discovered.
