Federal Government Reveals Allocation of Budget In 2018
According to a report by the Economic Confidential, the federal government, the 36 states and the 774 local government councils in Nigeria all shared a sum of N8 trillion from the Federation Account in 2018.
The report also revealed that the revenues came from sales from export of crude oil, domestic sales of crude oil, Petroleum Profit Tax (PPT), Import Duty, Excise Duty, LPG, NLNG, Company Income Tax (CIT), Withholding Tax (WHT), Royalties, gas flared and other miscellaneous oil revenue such as Oil Prospecting License and Oil Mining Licence.
The Economic Confidential, which has started since January 2007, is a monthly report or the meeting held by the Federation Account Allocation Committee (FAAC).
It has been reported that amongst everyone that received a revenue from the Federation Account, Delta and Akwa Ibom States were the biggest recipients, receiving the highest sum of money.
Presently, the only reliable sources of revenue generation into the Federation Account are revenue collected by federal government agencies, with little or no contributions made by the states and local government councils.
The agencies responsible for revenue generating revenues to the Federation Account includes the Nigerian National Petroleum Corporation (NNPC), Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and the Department of Petroleum Resources (DPR).
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In 2017, the federal government was able to receive N2.5 trillion, while others shared N3.3 trillion.
In 2018, the administration of President Muhammadu Buhari was able to receive a sum of N3.48 trillion, while the states and local government councils, shared a total sum of N4.5 trillion.
The Economi6 Confidential had disclosed in its annual investigative report the ranking of all the 36 states with a table of figures.
According to the table, Delta state is ranked as the highest recipient of gross allocation with a total sum of N285 billion received within the twelve months of 2018.
Delta is followed closely by Akwa State with a total sum of N272 billion. Lagos is in third place with N260 billion; Rivers, with N237 billion; and Bayelsa earned N192 billion.
These five states got over 25 per cent of the allocation for all the states and local government councils in 2018.
Other high earning recipients in 2018 from the Federation Account includes Kano State, which received N183 billion; Katsina receiving N138 billion; Oyo got N131billion; Kaduna, N131billion; and Borno State, N122 billion.
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The report also disclosed that oil producing states including Edo and Ondo, received N112 billion and N108 billion respectively. While Cross River State, received N91 billion.
According to reports, the factors that influence the 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.