Federation Account: How FG, States, LGcs Shared N7.8tr in 2019
… FG Received N3.38tr, States/LGCs Got N4.41tr
…Highest Allocations: Delta N282bn, Lagos N270bn, Kano N181bn
…Lowest Allocations: Ekiti, Nasarawa, Ebonyi Received less than N80bn each
A new report by the Economic Confidential has disclosed that the Federal Government, 36 states and the 774 local government councils in Nigeria shared a total sum of N7.8 trillion from the Federation Account in 2019.
While the Federal Government and its agencies received a total sum of N3.3 trillion, other tiers of government shared N4.4 trillion. The total allocation of N4.4tr to States and their Local Government Councils is N100 billion lesser than the N4.5 trillion they received in the previous year of 2018.
In its annual detailed investigative report with a table of figures, the Economic Confidential disclosed that among the state recipients, Delta is ranked first as the highest recipient of gross allocation with a total sum of N282bn in the twelve months of 2019. It is followed by Lagos State N270bn, Akwa Ibom N241bn, Rivers State N219bn and Kano State N181bn.
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The five states cornered over a quarter (25%) of the total allocation for the States and local government councils in Nigeria. Among the 10 highest recipients from the Federation Account are Bayelsa State which got N176bn; followed by Katsina State N136bn, Oyo State N131bn, Kaduna State N129bn and Borno State N121bn.
The lowest recipients are Gombe and Ebonyi States that got N75bn and N76bn followed by Nasarawa N77bn, Ekiti N78bn and Kwara N80bn. The report further disclosed that Edo and Ondo which are oil-producing states got N108bn and N103bn respectively while another state in the South-South, Cross River State merely received N90bn in one year.
The Economic Confidential, Nigeria’s intelligence economic magazine, gathered that factors that influence allocations to states and local government councils from the Federation Account include: Population, Derivation, Landmass, Terrain, Revenue Effort, School Enrolments, Health Facilities, Water Supply and Equality of the beneficiaries.
The Economic Confidential which is circulated at the monthly meeting Federation Account Allocation Committee (FAAC) has been publishing the monthly Federation Account Allocation figures since January 2007.
It also publishes the Annual States Viability Index (ASVI) which measures the survival of States on Internally Generated Revenue (IGR) without relying on Federally Collected Revenues, especially from the Federation Account.
The Annual State Viability Index for 2019 will be released next week. The magazine is a sister publication of PRNigeria, a news release syndication platform.
