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FAAC disburses N647.35 billion in February as allocation drops further

The Federal Account Allocation Committee (FAAC) disbursed the sum of N647.35 billion to the three tiers of government in February 2020.

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The Federal Account Allocation Committee (FAAC) disbursed the sum of N647.35 billion to the three tiers of government in February 2020.

Checks by Nairametrics confirmed that this marks a decline compared to N716.3 billion and N650.83 billion  that were disbursed in January 2020 and December 2019, respectively.

The February disbursement was disclosed in the latest monthly allocation report which was published by the National Bureau of Statistics (NBS).

According to the report, the Federal government received the giant share of N267.39 billion, followed by the 36 states which collectively received the sum of N176.92 billion. The local governments, on the other hand, received the sum of N132.94 billion.

The amount disbursed comprised of N524.59 billion from the Statutory Account, N16.30 billion from Non-Oil Revenue, N659.08 million from Excess Bank Charges Recovered for the Month, N104.76 billion from Valued Added Tax (VAT), and N1.04 billion exchange gain differences.

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FAAC disburses N647.35 billion in February as allocation drops further

Details 

The breakdown showed that the sum of N201.9 billion was disbursed to the Federal Government Consolidated Revenue Account and N4.8 billion as a share of derivation and ecology. See further breakdown below:

  • Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N6.17 billion, N6.94 billion and N4 billion respectively.
  • The Federal Government received N2.4 billion as stabilization fund, N8.06 billion for the development of natural resources and N6.58 billion to the Federal Capital Territory (FCT).
  • Oil-producing states received an additional sum of N46.2 billion as part of the 13% derivation fund.

 (READ MORE: FAAC disburses N650.8 billion in December 2019, South-South states receive highest share)

States Allocation: Delta State received N18.32 billion which is the highest share of the total gross allocation. Rivers State followed, having received a total of N14.28 billion while Akwa Ibom received N12.25 billion in gross allocation. Other top receiving states in the month of February include Lagos State with a total of N13.79 billion and Bayelsa State which received N13.39 billion.

On the other hand, five states with the least share of gross allocation in the month of February include – Ekiti, Kwara, and Ebonyi States with N3.96 billion, N3.97 billion and N3.99 billion respectively. Others include Nassarawa State which received N4 billion and Osun State with N4.13 billion.

States deductions: For the period under review, a total sum of N36.42 billion was deducted from the states’ allocation for the following reasons:

  • External debt deduction was put at N3.64 billion, while contractual Obligation (ISPO) was estimated at N6.44 billion. Other deductions represented the highest deduction as it cost the states a sum of N26.34 billion.
  • According to the NBS, other deductions covered National Water Rehabilitation Projects, National Agricultural Technology Support Programme and Salary Bailout.

Revenue decline: In recent times, government revenue has dropped due to the drastic slump in global oil prices. The price slump is mainly due to the oil price war between Russia and Saudi Arabia, a situation that has been complicated by the Coronavirus pandemic which has ravaged world economies, basically halting trading activities in most of the affected countries.

It is now feared that the Federal Government allocation to the three tiers of government may decline further in the coming months, as the country’s biggest export commodity continues to dwindle in price.

What this means, therefore, is that it is high time the Federal Government and all states of the federation begin to look inwards in order to device other means of generating funds internally through the  revamp of other sectors of the economy.

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Tech News

Facebook to open Lagos office in 2021

When the social media giant comes to Nigeria, it will be its second office on the African continent.

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Facebook set to award $3 million in Community Accelerator program, Facebook to invest $100 million in media houses as coronavirus crashes their revenue, Facebook to expand Coronavirus Information Centre to Nigeria, 16 other African countries

Social Media giant, Facebook announced it would open an office in Lagos in 2021, its second office in the continent and the first in Africa to house software engineers.

This was announced by Facebook Program Manager, Chimdindu Aneke on social media. “We are opening a Facebook office in Lagos, Nigeria later in 2021,” he said.

He added that the office would be the first in Africa by Facebook for the purpose of engineering and “building for the future of Africa and beyond”.

Media aide to the Presidency, Tolu Ogunlesi quoted Facebook saying, “As part of its continued commitment and ongoing investment in Africa, Facebook today announced it will be opening an office in Lagos, Nigeria – its second office on the African continent.”

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In 2019, Facebook’s biggest market in Africa was Nigeria with 33 million monthly active users.

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Business

Nigeria among countries to be worst hit by food crisis globally

Nigeria, others were listed as countries with the worst deteriorations in acute hunger in recent months.

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7 million Nigerians to experience food shortage

Nigeria has emerged as one of the countries to be most hit by food crisis across the globe in the face of the coronavirus pandemic which had worsened the already bad situation.

This disclosure is contained in a report by the United Nation’s Food and Agriculture Organization (FAO).

The report from the FAO also shows that the Democratic Republic of Congo is emerging as the country with the world’s largest food crisis in terms of absolute numbers, with Burkina Faso listed as the country with the worst deteriorations in acute hunger in recent months.

The food crisis is made worse in Nigeria by the longstanding religious and ethnic conflicts and even organized crimes by some bandits, which has greatly affected farmers working on their farmlands.

In addition to these, the farmers were already contending with the issue of flooding or drought, which has negatively been impacting on the agricultural sector in a period the country is desperate and very desirous of economic diversification. The coronavirus pandemic has triggered a surge in food prices as can be seen in the reports released by the National Bureau of Statistics (NBS), in a country that imports over 10% of its food supply.

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With a population of over 200 million people, Nigeria is the most populous country in Africa, which is regarded as the world’s most food-insecure continent. This is made worse as importers of food items struggle to gain access to dollars for their imports due to scarcity of foreign exchange which is triggered by the crash of oil prices and low foreign inflow.

This is expected to be exacerbated by the recent order by President Muhammadu Buhari to the Central Bank of Nigeria, to stop the allocation of foreign exchange to importers of food items.

The Governor of Niger State, Abubakar Sani Bello, warned in April, “We are heading toward famine and starvation.”

The FAO report which states that Congo has about 21.8 million people that are acutely food insecure, also points out that Burkina Faso has witnessed an almost 300% uptick in the overall number of people experiencing acute hunger since the start of 2020.

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Around the World

US government to ban WeChat and TikTok from app stores

Chinese-owned social media apps are facing a ban in the US over national security concerns.

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Reasons why a record number of people are giving up their US citizenship, US approves chloroquine as treatment for coronavirus COVID-19, Nigeria U.S. Donald Trump-oil prices

The United States government says it will ban the services of Chinese tech giants, WeChat and TikTok, from online mobile application stores in the U.S. It also plans to prohibit any funds transfer/payment services through the WeChat mobile application.

This was announced by the U.S Commerce Secretary, Wilbur Ross, in a statement on Friday, following President Donald Trump’s Executive Orders (E.O.) 13942 and E.O. 13943, on the 6th of August.

“In response to President Trump’s Executive Orders signed August 6, 2020, the Department of Commerce (Commerce) today announced prohibitions on transactions relating to mobile applications (apps) WeChat and TikTok to safeguard the national security of the United States,” said Wilbur Ross.

He added that the Chinese Communist Party (CCP), has proven it has the means and the motive to use Chinese tech apps, to threaten America’s national security foreign policy, and the economy of the U.S.

He said the following transactions will be prohibited from September 20th for WeChat and November 12th for TikTok

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  • Any provision of service to distribute or maintain the WeChat or TikTok mobile applications, constituent code, or application updates, through an online mobile application store in the U.S.
  • Any provision of services through the WeChat mobile application, for the purpose of transferring funds or processing payments within the U.S.

Mr. Ross said that with the Executive Order, the US government has taken a ‘significant action’ in fighting China’s malicious personal data breach on American citizens, and also promote democratic rule-based norms, and aggressive enforcement of U.S. laws and regulations.

The U.S government announced that further prohibitive measures, relating to both companies may be announced in the future.

“Should the U.S. Government determine that WeChat’s or TikTok’s illicit behavior is being replicated by another app somehow outside the scope of these executive orders, the President has the authority to consider whether additional orders may be appropriate to address such activities.”

President Trump has given until November 12, to resolve the TikTok security concerns of the US. He added that the prohibitions may be lifted, if they are addressed.

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