The Nigerian Extractive Industries Transparency Initiative (NEITI) has published its third quarter FAAC disbursements to all tiers of government. The report is issued quarterly by NEITI and published on their behalf by Nairametrics.
Here is a summary of the latest publication.
This review examined FAAC disbursements to all tiers of government for the third quarter of 2016. The review showed that revenue accruable from FAAC disbursements in the third quarter of 2016 was lower than for the corresponding period in 2015.
Thus, as was revealed in the previous edition of this Review, lower revenue is being channeled into the Federation Account. Interestingly, this Review showed that disbursements in the third quarter of 2016 have far outweighed those in the first two quarters of the year. This reflects the rise in oil prices and reduction of militant activities recorded over this period.
This Review also showed that cumulative FAAC disbursements to States for Q1 to Q3 in 2016 are substantially lower than the 2016 budgets for all States. Even though the states will still receive disbursements for Q4 and they also receive inflows from IGR, it is highly unlikely these will be sufficient enough to offset the big gap between expenditure and revenue. This suggests that many States will incur heavy budget deficits and they will not be able to effectively implement their budgets for the year. Exceptions are states which sufficiently generate IGR (Lagos, Rivers, Delta).
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