Home Political News Nigeria's September Allocation Drops By N52bn As FG, States, LGs Share N389.9bn

Nigeria's September Allocation Drops By N52bn As FG, States, LGs Share N389.9bn

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The Federation Account Allocation Committee (FAAC) FAAC yesterday distributed a total of N389.9 billion to the three tiers of government as allocation for the month of September 2015, even as revenues to the federation account dwindled further.
 
The allocation distributed indicates a decline over the N442.06 billion shared among the three tiers for the month of August.
 
This is as the federal government said it has released the second quarter capital allocation for 2015.
 
Addressing journalists at the end of the monthly FAAC meeting in Abuja yesterday, the permanent secretary Federal Ministry of Finance Mrs Anastasia Daniel-Nwaobia disclosed that the constituency allowances for the execution of constituency projects by legislators has also been released.,
 
She however failed to disclose how much was released as second quarter capital allocation for 2015 but she stated that the Accountant General of the Federation (AGF) was in the process of issuing Authority to Incur Expenditure (AIEs) to Ministries Departments and Agencies.
 
The first quarter capital allocation of N139.26 billion was released on the 10th of September last month and from what the permanent secretary hinted it appears the federal government wants to hasten the release of as many 2015 capital allocations as is possible to meet capital needs of the country thus the release of the second quarter capital allocation almost immediately.
 
A breakdown of the allocation for the month of September 2015 showed that the federal government received N151.343 billion; the states received a total net statutory allocation of N76.763 billion; the 774 local government got N59.181 billion while N27.505 billion was shared among the mineral oil producing states as 13 per cent derivation proceeds.
 
From N54.143 billion Value Added Tax (VAT) proceeds, the federal government got N8.121 billion, the states, N27.072 billion and the local governments N18.950 billion. N5.211 billion was shared by the three governments as exchange gains proceeds.
 
With regards to the FAAC disbursements for September 2015, the finance ministry permanent secretary lamented the continued drop in revenue to the federation coffers which in turn has resulted in the Excess Crude Account remaining unchanged at $2.25 billion.
 
Daniel-Nwaobia said the federal government was worried at this drop in revenue but was working to address the challenges the drop in revenue posed.
 
One of the efforts being employed by the federal government she said is through the improvement of tax base and administration and so far McKinsey has been helping the federal government to shore up the tax base and help the federal government generate more revenue.
 
She said that already small informal businesses not earlier captured in the tax net, the permanent secretary said, will be targeted for taxation to boost government revenue. Also the federal government she said will be looking at curbing illegal mining activities across the country to pursue ways and means of improving revenue generated from that sector.
 
Credits: Leadership
 
 
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