FAAC: FG, States, LGs Share N563.089 Billion

The Federation Accounts Allocation Committee (FAAC) has shared the sum of N563.089 billion among Nigeria’s three tiers of government from gross revenue of N626.178 billion that accrued to the federation reserves in April.

The funds meant for the 36 states and local governments and the Federal Capital Territory (FCT) are to be credited on Monday.

Minister of State for Finance, Dr. Yerima Ngama, said the release of the funds would enable the beneficiaries meet their financial requirements.

The breakdown of the shared amount showed N441.167 from Statutory Federation Accounts, N57.291 billion from Value Added Tax (VAT), N21.465 billion for augmentation from the Excess Crude Account; N35.549 billion from the Subsidy Re-Investment Programme, SURE-P and N7.617 billion represents refund by the Nigerian National Petroleum Corporation (NNPC) to the FAAC.

In the sharing formula, the federal government got N207.547 billion (52.68 %), states got N105.271 billion (26.72 %) while LGs received N81.159 billion (20.60 %).

Meanwhile, the nine oil producing states received an additional N47.189 billion (13 %) derivation.

But the high level of oil theft in the Niger Delta region was said to have created negative effects on oil revenue in the month of April as gross revenue of N626.178 billion received became lower than the N726.726 billion received in March, the previous month by N100.594 billion.

According to the Minister of State for Finance, Dr. Yerima Ngama, all tiers of government are expected to tie the SURE disbursements to special projects to be chosen by the individual governments.

“In line with the principle of transparency with which the federal government pledged to pursue the SURE-P, its funds were paid separately to the states and local governments.”

News Reporter
Blank NEWS Online founding Editor-in-Chief and Publisher, Albert Eruorhe Ograka, is a Graduate of Mass Communication. He also holds a Post Graduate Diploma (PGD) in Journalism from the International Institute of Journalism (IIJ).

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