NEITI hopeful of increased FAAC disbursements from higher oil production
• FG, States, LGs shared N8.5 Trillion in 2018
With expectations that the nation will increase its oil production, consolidated by price moderation efforts of the Organization of Petroleum Exporting Countries (OPEC), the Nigeria Extractive Industries Transparency Initiative (NEITI) has projected improved revenue receipts into government coffers from the oil and gas sector.
NEITI went on to add that the Federation Allocation Account Committee (FAAC) disbursed N8.5 trillion to the three tiers of government and others, the first time since 2014 that disbursements would exceed N2 trillion in three consecutive quarters. The total of N8.52 trillion shared represents 32.8% increase when compared to N6.418 trillion disbursed in 2017 and 67.1% higher than N5.1 trillion shared in 2016. The Federal Government received N3.483 trillion representing 41% while the 36 states received N2.85 trillion, representing 33.4% and the 774 local governments got N1.667 trillion, representing 19.6%. According to data contained in the latest edition of NEITI quarterly review, government revenues have continued to be on the increase since 2017.
A quarterly breakdown of disbursements in 2018 showed a steady increase in the amount disbursed throughout the year. For instance, in the first quarter of the year, FAAC shared N1.938 trillion, while N2.008 trillion was disbursed in the second quarter. Disbursements in the third and fourth quarters were N2.278 trillion and N2.299 trillion respectively.
At the domestic level, NEITI is optimistic that oil production will increase in 2019 given the take-off of Egina offshore field, which started production in December 2018, with optimum production capacity of 200,000 barrels per day.
On the states’ share of the FAAC disbursements, the review disclosed that five states received higher than N100 billion each in 2018, Lagos (N119 billion), Bayelsa (N153.1billion), Rivers (N172.6 billion), Akwa Ibom (N202.4 billion) and Delta (N213.6 billion) whilst twenty-three states received less than N60 billion each. A break down shows that Cross River, Ekiti and Ogun states received N37 billion, N39.3 billion and N39.6 billion respectively. Eight states, Zamfara, Gombe, Plateau, Kwara, Ebonyi, Nasarawa, Taraba, and Adamawa, received between N40 billion and N49.9 billion. Twelve states received between N50 billion and N59.9 billion, Yobe, Enugu, Kogi, Bauchi, Imo, Sokoto, Kebbi, Anambra, Abia, Benue, Niger and Oyo while six states (Jigawa, Katsina,Borno, Ondo, Kaduna, and Edo) received between N60 billion and N69.9 billion while Kano State received a total of N84.2 billion in 2018.
A close look at the disbursements to states indicate a wide disparity, with Osun receiving the lowest net allocation of N22.8billion while Delta State received the highest of N213.6 billion, ‘‘meaning net disbursement to Delta State was 935% of Osun’s,” the review added.
No comments yet