FG, States, LGs Shared N3.010tn in First Half of 2017

• FG, States, LGs Shared N3.010tn in First Half of 2017

The Federal Account Allocation Committee (FAAC) disbursed N3.010 trillion to the three tiers of government between January and June this year, figures compiled have shown.

The amount shared by the three tiers of government was significantly higher, compared with the N2 trillion allocated to them in the first half of 2016.

A breakdown of the disbursement showed that the federal government received N1.216 trillion from FAAC in the first half of 2017, higher than the N854 billion it was allocated in the comparable period of 2016.

While the states received N798 billion in the first six months of 2017, also higher than the N701 billion in the comparable period of 2016; local governments got N599 billion in the first half of 2017 from FAAC, higher than the N429.4 billion they received between January and June this year.

Findings also showed a general increase in the revenue shared by the three tiers of government.

A further breakdown of the monthly allocation in the first six months of the year showed that while FAAC disbursed N514.15 billion to the three tiers of government from the revenue generated in January 2017, the Committee disbursed N466.93 billion to the three tiers of government from the revenue generated in February 2017.

Also, while from the revenue generated in March 2017, FAAC shared N496.39 billion, from the revenue generated in April 2017, N418.82 billion was also disbursed to the three tiers of government. In the same vein, the FAAC disbursed N462.36 billion to the three tiers of government from the revenue generated in May 2017 and N652.229 billion for June.

The improved crude oil production recorded by the country recently is the major factor responsible for the increased FAAC allocation to the three tiers of government.

Nigeria’s oil production recently rose from 1.2 million barrels per day to about two million barrels per day.

This saw the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers, led by Saudi Arabia and Russia, approving the decision of the federal government to cap Nigeria’s oil production at a sustainable volume of 1.8 million barrels per day.