Barley two months to the end of the outgoing year, indications are that the three tiers of government have, in the last ten months, spent about N4.8 trillion from three revenue sources.
Investigations at the weekend revealed that the federal, state and local governments spent the revenues drawn from statutory revenue allocations during the monthly Federation Accounts Allocation Committee (FAAC) meetings, collections from Value Added Tax (VAT), as well as the series of augmentations drawn from the Excess Crude Account (ECA) for the period. Details of the expenditure show that the three tiers of government shared about N4.4 trillion from revenues earned from statutory sources in the first nine months, excluding about N403.5 billion distributed last Friday for the month of October.
A breakdown of the October allocation, including statutory allocations and VAT, gave the federal government about N178.47 billion, states N106.7 billion, while local governments took N80.95 billion and N37.37 billion allocated as 13 percent derivation for oil producing states.
Minister of State for Finance, Yabawa Wabi, said at the end of the FAAC meeting that about $387.2 million was transferred into the Excess Crude Account to increase its balance to about $1.16 billion as at last month, while about N175 billion was transferred into the Excess Development Account (EDA), another $1 billion into the Sovereign Wealth Fund (SWF) and N31.2 billion into Domestic Crude Account (DCA).
Out of the N411.572 billion shared last month, the federal government got the highest share of N173.124 billion, while states got N87.811 billion and local governments N67.699 billion. The oil producing states went home with N36.359 billion as 13 percent derivation. Between January and June, about N2.8 trillion was distributed among the three tiers of government, before the figure rose to N3.5 trillion in July, including with the $2 billion drawn from the excess crude account, and the allocation of N404.273 billion from the Federation Accounts.
Last August, FAAC at the weekend approved N433.698 billion to be shared by the federal, states and local governments, an increase of N29.425 billion, or 7.278 percent compared to the amount shared in July. The Accountant-General of the Federation (AGF), Ibrahim Dankwambo, said in the communiqué issued at the end of the FAAC meeting that the increase was attributed to the revision of the monthly approved budget revenue bench mark from N365.888 billion to N369.422 billion. In addition, the sum of N24.738 billion was distributed as arrears of augmentation from January to July.