ECONOMY I Nigeria's 36 States Receive #173.8BN In Sept From Federation Account

Nigeria's 36 States Receive #173.8BN in Sept From Federation Account
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The 36 states in Nigeria shared ₦173.8 billion among themselves from the Federation Account in September from the distributable revenue generated for the month.

The breakdown was in a report from the office of the Accountant-General of the Federation in Abuja.
The funds are usually shared the following month.

For example, revenue generated in January is shared in February; thus, the revenue shared was actually generated in August and shared in September.

The key agencies that remit funds into the federation account are the Nigerian National Petroleum Corporation (NNPC), the Federal Inland Revenue Service and the Nigerian Customs Service.

Rostrum gathered that at the last Federation Account Allocation Committee (FAAC) meeting in September, federal, states and local governments shared ₦637.7 billion.

The report showed that the revenue distributed included the Gross Statutory revenue, Value Added Tax, exchange gains and Petroleum Profit Tax.

The report showed that before distribution to the states, their liabilities were first deducted.
The liabilities include a total external debt of ₦2.67 billion, contractual obligations of ₦9.58 billion
and other deductions amounting to ₦18.2 billion.

The report showed that the other deductions covered National Water Rehabilitation Projects, National Agricultural Technology Support, Salary bailout, Payment for Fertilizer, State Water Supply Project, State Agriculture Project and National Fadama Project.

To sum it up, here is what the 36 states got after all deductions were made.
Abia ₦4.04 billlion, Adamawa ₦4.02 billion, Cross River ₦2.85 billion, Ekiti ₦2.94 billion, Edo ₦4.5 billion, Kaduna State ₦5.4 billion, Kano State ₦6.8 billion, Lagos state ₦8.8 billion, Rivers ₦12.45 billion, and Zamfara, ₦3.05 billion.

Delta got ₦14.2 billion, Anambra ₦4.3 billion, Benue ₦4.2 billion, Borno N4.9 billion, Ebonyi ₦3.76 billion, Enugu State ₦4.07 billion, Gombe State N3.39 billion, Nassarawa State N3.74 billion, Imo N3.96 billion and Kogi N4.24 billion.

Yobe also got N4.15 billion, Taraba, N3.6 billion, Sokoto state N4.1 billion, Plateau N3.38 billion, Oyo State N4.8 billion, Osun N1.6 billion, Ondo State N4.64 billion, Ogun N3.04 billion, Niger N4.61 billion and Kebbi N4.26 billion.

Similarly, Katsina state got N4.66 billion, Bayelsa N10.88 billion, Bauchi State N4.34 billion, Jigawa N4.67 billion, Akwa Ibom, N12.94 billion and Kwara N3.53 billion.
The report also showed that the Federal Capital Territory got N5.74 billion from the Federal Government’s share of the distributable revenue in September.
From the data, the top 10 earning states from the federation account for the month are Delta, Akwa Ibom, Rivers, Bayelsa, Lagos, Kano, Kaduna, Borno, Oyo, Jigawa state in that order.
The 10 lowest earners for the month are Osun state, Cross River, Ekiti, Ogun state, Zamfara, Plateau, Gombe, Kwara, Taraba and Nassarawa state.

NAN reports that the FAAC committee is made up of commissioners of finance and Accountants-General from the 36 states of the federation; the Accountant General of the Federation, and representative from the NNPC.

Others are representatives from the Federal Inland Revenue Service; the Nigerian Customs Service; Revenue Mobilisation, Allocation and Fiscal Commission as well as the Central Bank of Nigeria.
The federation account is currently being managed on a legal framework that allows funds to be shared to the three tiers of government under three major components.

These components are the statutory allocation, Value Added Tax distribution; and allocation made under the derivation principle.