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Banking | Finance

FG, States, LGs Share N2.53 Trillion

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Mrs. Kemi Adeosun, Nigeria’s Finance Minister

Federal, states and local governments in Nigeria have shared N2.53 trillion as revenue from the Federation Account from January to July this year.

The figures were computed  from documents obtained from the Federal Ministry of Finance, showing that the total revenue generated for the seven months was N2.73 trillion.

However, deductions were made for cost of collection to Nigeria Customs Service (seven per cent); Federal Inland Revenue Service (four per cent) and Department of Petroleum Resources (four per cent).

NAN reports that the revenue is usually shared in arrears; for example, revenues generated in January is shared in February; thus, the revenue shared between January and July was actually generated between Dec. 2015 and June, 2016.

In the months under review, the Federal Government alone received a total of N1.1 trillion; Ssates got N727.5 billion and the local governments got N544.9 billion.

This was shared based on the formula of Federal Government receiving 52.68 per cent of the amount generated, states, 26.72 per cent  and local governments, 20.6 per cent.

Also, oil producing states shared an additional N148.1 billion based on the 13 percent derivation.

The revenue shared was the mineral earnings from the Nigeria National Petroleum Corporations (NNPC) and DPR and non-mineral revenue from Customs and FIRS.

Additional revenue came from Petroleum Profit Tax, Import Duty, Exchange gains and NNPC refunds.

Also, in the month of May, the sum of N1.5 billion, being excess bank charges, was recovered into the Federation Account and shared among the three tiers.

In January, N417.1billion  was shared.  The Federal Government received N180.3 billion; states, N113.5 billion and local governments, N85.4 billion while N208.2 was shared as derivation revenue.

In February, N370.3 billion was shared and Federal Government received N155.4 billion, States N104 billion and Local Government N77.8 billion.

The sum of N345.1 billion was shared in March with the Federal Government taking N144.5 billion, states N96.4 billion and local governments, N72.1 billion.

Oil producing states also got an additional N23.2billion.

In April, N306 billion was shared and the Federal Government received N126 billion, states, N86.9 billion and local governments, N64.7 billion, while N20.1 was shared to oil producing states as derivation fund.

May recorded low revenue as only N289.4 billion was shared.

The Federal Government got N118.9 billion; states, N83.7 billion and local governments, N62.2 billion.

Also, N16 billion was shared as derivation revenue to oil producing states.

In June, N311. 5 billion was generated and Federal Government took N129.7 billion, states received N89.1 and local governments made N66.4 billion and as usual, 13 per cent derivation revenue of  N17 billion was shared to oil rich states.

NAN reports that based on the data, N691.7 billion was shared in July.

This has been the highest amount generated in a month since the beginning of the year.

From the amount, Federal Government received N255.6 billion, states, N153.9 billion and local governments, N116.3 billion.

The sum of N20.9 billion was shared among oil producing states.

NAN recalls that N150 billion has also been given in the last three months to state governments under the Fiscal Sustainability Plan of the Federal Government to enable them to pay salaries.

However, not all states are benefitting from it as some have decided not to participate due to their buoyancy.

 

NAN

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Funsho Arogundade

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