FG, States, LGs Shared N1.41tn in Q1 – Report

A money changer holds Turkish lira banknotes next to U.S. dollar bills at a currency exchange office in central Istanbul April 15, 2015.A money changer holds Turkish lira banknotes next to U.S. dollar bills at a currency exchange office in central Istanbul April 15, 2015.
  • FG, States, LGs Shared N1.41tn in Q1 – Report

The Federal Government, the 36 states of the federation and the 774 local government areas have so far shared N1.4tn from the Federation Account, being revenue generated in the first quarter of this year.

The breakdown is contained in the monthly Federation Account Allocation Committee report obtained by the News Agency of Nigeria on Sunday in Abuja.

The key agencies that remit funds into the Federation Account are the Nigerian National Petroleum Corporation, Federal Inland Revenue Service and the Nigeria Customs Service.

The total revenue shared in January by the three tiers of government was N430.16bn, with the Federal Government taking N168bn; states, N114.28bn; and local governments, N85.4bn.

The federation grossed in N514bn in February and Federal Government’s share was N200.6bn; states, N128.4bn; and local governments, N96.52bn.

However, in March, revenue generation dipped, grossing N466.9bn, from which the Federal Government got N180.5bn; state governments, N116.5bn; and local governments, N87.5bn.

The allocations were made using this revenue sharing formula: the Federal Government, 52.68 per cent; states, 26.72 per cent; and local governments, 20.60 per cent.

The report showed that before the distribution of the revenue, the states’ respective liabilities were deducted.

The liabilities paid by the states in the first quarter included an external debts of N8.73bn, contractual obligations of N30.15bn and other deductions amounting to N50.23bn.

Others are deductions for national water rehabilitation projects, national agricultural technology support, payments for fertilizer, state water supply project, state agriculture project and national Fadama project.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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