The Nigeria Extractive Industries Transparency Initiative (NEITI), has reported that Federation Accounts Allocation Committee (FAAC) shared N3.879 trillion to the federal states, local governments, and other agencies in the first half of this year,
It reported that from January to May 2020, actual government revenue was N1.62trn, representing 62 per cent of the expected pro-rata revenue of N2.62trn from the revised budget.
The report showed that out of the amount distributed to the tiers of government on monthly basis, the Federal Government got N1.53trn while the states received N1.29trn and the 774 local government areas shared N771.34bn.
According to the latest edition of the quarterly review of NEITI made public on Tuesday, the N1.53trn received by the Federal Government in the six -month period was 4.28 per cent lower than the N1.599trn it got in the first half of 2019 and 7.36 per cent lower than the N1.652trn it received in the first half of 2018.
In the same vein, the total of N1.298trn disbursed to the states in the period was 2.8 per cent lower than the N1.35trn disbursed to them in the corresponding period of last year.
For local governments, the 2020 first half disbursements were 2.64 per cent and 3.04 per cent lower than the corresponding disbursements for 2019 and 2018 respectively.
The report further reflected that disbursements in Q2, 2020 totalling N1.934trn, were 1.09 per cent higher than total disbursements in Q2 ,2019 and 3.66 per cent lower than the one for Q2, 2018.
The report pointed out that the total FAAC disbursements in the second quarter of 2020 was slightly lower than the N1.945trn disbursed in Q1,2020, adding that “this aligned with the projections made in the previous issue of the NEITI Quarterly Review which projected lower FAAC disbursement in the second quarter,” the report stated.
The NEITI attributed the 0.55 per cent decrease in Q2 ,2020 to some factors, including the rebound in oil prices in the second quarter as a result of ease of lockdown by countries globally, the adjustment of the official exchange rate by the Central Bank of Nigeria from N307/$ to N360 in March resulting in higher Naira disbursements.