FAAC disbursed N2.05tr to FG, states, LGAs in Q3 2020 – NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) said on Tuesday the Federation Account Allocation Committee (FAAC) disbursed a total sum of N2.054 trillion to the three tiers of government and other statutory recipients in the third quarter of this year.

In a statement issued in Abuja, the agency said the amount was 6.2 percent higher than the N1.934 trillion disbursed in the second quarter and 5.6 percent higher than total disbursements of N1.945 trillion in the first quarter despite the effects of the COVID-19 pandemic on the nation’s economy.

However, in its Quarterly Review on FAAC disbursements, NEITI disclosed that the amount shared by the FAAC to the three tiers of government in the third quarter were lower than those of the corresponding quarters in 2019 and 2018.

It said: “The third quarter 2020 disbursements were 9.6 percent lower than the N2.273 trillion disbursed in the third quarter of 2019 and 9.8 percent lower than the N2.278 trillion disbursed in the third quarter of 2018.

“The Federal Government received N812.22 billion, state governments received N676.5 billion while local government areas got N429.16 billion.”

NEITI said the third quarter allocation was the first time the quarterly disbursements exceeded N2 trillion this year.

“The N812.22 billion received by the federal government was 11.7 percent lower than the N920.2 billion and 10.2 percent lower than the N904.8 billion received in the third quarters of 2019 and 2018 respectively.

READ ALSO: FG, states, LGAs shared N3.88trn in first half of 2020 —NEITI

“The states received a total of N676.5 billion in the third quarter of 2020, showing a decrease of 6.6 percent when compared to the N724.16 billion received in the third quarter of 2019, and 5.9 percent lower than the N718.5 billion for the third quarter of 2018.

“The local governments got a total of N429.16 billion in the third quarter of 2020, 9.6 percent lower than the N441.19 billion received in 2019 and 9.8 percent lower than the N432.1 billion for 2018.

“The dip in disbursements between 2020 Q3 and corresponding quarters in 2019 and 2018 was largely due to the impacts of COVID-19 and its associated effects on demand for oil, oil prices, economic activities, and other sources of revenues.

“Further analysis reveals that disbursements to the three tiers of government fell between the first and second quarters, and then increased between the second and third quarters of 2020,” the agency added.

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