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Half Year 1 FAAC: FG, states, others share N3.9t

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FEDERATION Accounts Allocation Committee (FAAC) shared N3.879 trillion to federal government, states, and local government areas in the first half of 2020.

  This was contained in the quarterly report on the review of the Nigeria Extractive Industries Transparency Initiative (NEITI) released on Tuesday.

  A breakdown showed that N1.53trillion went to the federal government, N1.29 trillion to states and N771.34billion to 774 LGAs.

  FAAC disbursements in the second quartre of 2020 stood at N1.934 trillion.

  The federal government got N739.2 billion; N629.3 billion went to state governments, and N375.4billion to 774 LGAs.

  The Quartre-2 allocations were slightly lower than the N1.945 trillion disbursed in the first quarter of 2020.

  There was 0.55 per cent decrease in Q2 of 2020 due to rebound in oil prices after ease of global lockdowns and adjustment of official exchange rate by CBN from N307 to a dollar to N360 in March.

  According to NEITI, during the first half of 2020, disbursements were very volatile compared to 2018 and 2019.

  “Unlike 2018 and 2019 where aggregate disbursements increased and decreased in successive months, in 2020 they fell for two straight months, increased in one month, and then decreased for two straight months. Aggregate disbursements were N716.3 billion in January and this fell to N647.4 billion in February. Thereafter, disbursements fell to N581.6 billion in March, before increasing to N780.9 billion in April. Disbursements then fell to N606.2 billion in May and to N547.3billion in June. These figures indicate differences of N68.9 billion between January and February, N65.7 billion between February and March, N199.3 billion between March and April, N174.7 billion between April and May, and N58.9 billion between May and June,” it said.

  The report noted that Osun State had the lowest net disbursement of N13.13 billion while Delta State had the highest net disbursement of N100.81 billion.

  Delta’s allocation was higher than the combined total net disbursements of N99.47 billion received by six states – Osun, Cross River, Plateau, Ogun, Gombe and Ekiti.

  The N321.29 billion total disbursements four highest receiving states of Delta, Akwa Ibom, Rivers, Bayelsa got were higher than the combined total of N314.08 billion received by 16 states.

  They are Osun, Cross River, Plateau, Ogun, Gombe, Ekiti, Zamfara, Kwara, Nassarawa, Ebonyi, Taraba, Benue, Adamawa, Ondo, Bauchi and Abia.

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