The Nigeria
Extractive Industries Transparency Initiative, NEITI, has announced that the
Federation Account Allocation Committee, FAAC, disbursements increased by 25
per cent in 2017, with Akwa Ibom and Rivers states receiving the highest
allocations.
The NEITI Director of
Communications and Advocacy, Orji Orji, said this in a statement, according to
the News Agency of Nigeria, NAN.
He said
FAAC disbursed a total sum of N6.418 trillion in 2017 showing an increase of
25.8 per cent and 6.8 per cent when compared to total disbursements of N5.1
trillion and N6.011 trillion in 2016 and 2015 respectively.
Quoting the latest edition of its
Quarterly Review titled: “Analysis of FAAC Disbursements in 2017 and
Projections for 2018” Orji said a further breakdown of the amount disbursed in
2017 showed that the Federal Government received N2.564 trillion.
The review showed that the 36
states got N1.859 trillion while the 774 local governments shared N1.502
trillion.
The review, it explained, noted
that despite the fact that FAAC disbursements increased in 2017 over the
preceding years, they were still 34.1 per cent and 25.3 per cent lower than
total disbursements of N9.742 trillion and N8.595 trillion in 2013 and 2014
respectively.
The NEITI
review attributed the revenue increase in 2017 to rising crude oil prices,
improved oil production, and greater attention towards development of non-oil
revenue sectors.
It projected brighter prospects in
2018 as a result of the current oil price which recently hovers around 70 dollars
per barrel, in addition to upsurge in oil production.
A state-by- state breakdown of the
FAAC allocations in 2017 by the review showed that Akwa Ibom State received the
highest share of N143.6 billion, followed by Rivers State with a total
allocation of N119.6 billion.
Delta State came third with a total
allocation of N111.2 billion in 2017 while Bayelsa State got N105.3 billion to
take the fourth position.
However,
Osun State received N10.4 billion to take the lowest position of FAAC within
the year under review.
“Another striking feature of the
latest NEITI review of FAAC allocations is the disclosure that the third
quarter of 2017 recorded highest revenues of N1.929 trillion, while second
quarter recorded the lowest revenues of N1.377 trillion,” Orji said.
He said revenue disbursements from
Value Added Tax (VAT) have been on the increase since 2015.
“The increase is an indication of a
positive signal in recognition of the government’s policy towards the
development of non-oil sectors through sustained revenue generation from
services.
“VAT disbursements in 2017 were
N967.7 billion and N811 billion in 2016. This represents an increase of 19.3
per cent in 2017 over the figures for 2016.
“Also, total VAT disbursements in
2015 were N778.7 billion. This represents an increase of N188.9 billion (24.3
per cent) over the 2015 figures,” Orji added.
The review stated that the 36
states received the highest share of VAT revenues of N464.5 billion in 2017,
followed by N325.1 billion shared among the 774 local governments, while the
federal government received the lowest share from VAT proceeds with N139.3
billion.
It noted that this is on the
account of the fact that states take 50 per cent of VAT, while local government
areas and the federal government take 35 per cent and 15 per cent respectively.
On Paris Club loan refunds, the
review disclosed that the 36 states received N760.18 billion.
“The refunds were released in two
batches of N516.38 billion and N243.79 billion respectively.
“A breakdown showed that Rivers
State got the highest amount of N44.925 billion while Gombe State received the
lowest sum of N13.4 billion,” Orji said.
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