Report by the Nigeria Extractive Industries Transparency Initiative revealed that federal, state, and local governments have so far shared between them N1.86 trillion in the first quarter of the year, 2020 as disbursed by the Federal Accounts Allocation Committee.
A breakdown of the Q1 disbursements indicates that the federal government got N791.4bn and state governments shared N669bn between them while about N395bn was shared between the 774 local government areas.
The balance of N95bn went to the North East Development Commission, the Excess Crude Account, Federal Inland Revenue Service, Nigeria Customs Service, and the Department of Petroleum Resources.
The report showed total net FAAC disbursements and deductions for states in the quarter under review. Osun State had the lowest net FAAC disbursement of N6.44bn, while Delta State had the highest net FAAC disbursement of N52.03bn.
NEITI said, “While total disbursements in Q1 2020 were slightly higher than Q1 2019 and Q1 2018, disbursements to the three tiers of government in Q1 2020were slightly lower than Q1 2019 and Q1 2018. This is due to transfers to other accounts in Q1 2020 which were not done in either Q1 2019 or Q1 2018. These include allocations to the North East Development Commission and transfer to the excess crude account.”
NEITI, however, warned that as a result of declining demand for the country’s crude oil and dwindling oil revenues, “government revenue would likely continue to fall in subsequent months” and governments at
all levels will struggle to fund their 2020 budgets.