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Bumper Harvest: FG, states, LGs pocketed N7.75trn in 2014

The Federation Accounts Allocation Committee shared a total sum of N7.75trn among the three tiers of government within the 2014 fiscal period.
An analysis of the monthly distribution made by our correspondent also showed that the N7.75trn distributed in 2014 represents a decline of N150bn or 1.89 per cent over the N7.9trn which the committee allocated in the 2013 fiscal period
The committee, headed by the Minister of State for Finance, Amb Bashir Yuguda, is made up of commissioners of finance from the 36 states of the federation; the Accountant General of the Federation, Mr. Jonah Otunla and representatives from the Nigerian National Petroleum Corporation (NNPC).
Others are representatives from the Federal Inland Revenue Service; the Nigerian Custom Service; Revenue Mobilisation, Allocation and Fiscal Commission as well as the Central Bank of Nigeria (CBN).
The federation account is currently being managed on a legal framework that allows funds to be shared under three major components; statutory allocations, Value Added Tax distribution; and allocation made under the derivation principle.
Under statutory allocation, the Federal Government gets 52.68 per cent of the revenue shared; states, 26.72 per cent; and local governments 20.60 per cent.
The framework also provides that Value Added Tax revenue be shared thus: FG, 15 per cent; states, 50 per cent; and LGs, 35 per cent
Similarly, extra allocation is given to the nine oil producing states based on the 13 per cent derivation principle.
A breakdown of the N7.75trn figure for 2014 shows that the month of June had the highest allocation of N755.95bn while September with N693.53bn and May with N683.89bn followed respectively.
The sum of N621.12bn was allocated in January, February had N641.29bn, while N641.38bn, N634.72bn and N654.58bn was distributed in March, April, and July respectively.
For the months of August, October, November and December, the committee distributed N611.76bn, N593.34bn, N628.77bn and N580.37bn in that order respectively.
On the revenue side, investigations revealed that the country generated a total sum of N7.29trn in 2014 from oil and non-oil revenue sources.

Punch, February 11, 2015

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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

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