The National Bureau of Statistics (NBS) has reported that the Federation Accounts Allocation Committee (FAAC) distributed N3.16 trillion to the 36 states as net allocation from federally collected revenues in fiscal 2022.
The Bureau, in its latest report on FAAC distributions for the year under review, indicated that the distributions to the state governments represented an increase of 30.5% over the N2.42 trillion shared to them in 2021 and 42.1% more than the N2.23 trillion disbursed to them in 2020.
The figures also showed that distributions to the states from the federation account had been increasing over the past few years, despite shrinking revenues as they shared N1.7 trillion in 2017, N2.4 trillion in 2018 and N2.49 trillion in 2019.
According to the NBS, the distributions to the states comprised statutory allocations, distribution of exchange gain, 13% oil derivation to oil-producing states, share of the electronic money transfer levy, transfer of the 50% share of Ecology Fund to NDDC/ HYPPADEC and VAT collections.
An appraisal of the FAAC distributions to the sub-national governments reflected that the oil producing got a large chunk based on the 13% oil derivation revenues shared to them in addition to the normal monthly allocation to all state governments.
For instance, the NBS’ report showed that during the year under review, Delta State got N346.8 billion, representing about 11% of the distributions and about 82.8% higher than it received in 2021. Akwa Ibom followed with N277.04 billion collection or 8.6% of the FAAC distributions and 97.5% higher than the N140.3 billion it received the previous year.
The report further indicated that Rivers State got the third largest chunk of the 2022 distributions totalling N270.54 billion or 8.55% of the total disbursements, representing 67.3% higher than the N161.73 billion it received the previous year while Bayelsa State received N229.81 billion followed by Lagos State which also got N160.9 billion.
Conversely, the FAAC distribution figures to the sub-national governments indicated that Osun State got the lowest allocation in the year under review totalling N41.53 billion or 1.3% of the total disbursements; followed by Kwara State which received N42.87 billion or 1.36% of the disbursements; while Ogun State received N43.32 billion, which was about 1% lower than its N43.77 billion collection in 2021.
Experts attribute the increased FAAC allocations to the state governments in 2022 partly to the introduction of the Electronic Money Transfer Levy Regulations in the year under review following the implementation of the Finance Act 2021 as amended.
