State governments have lost N35.51 billion of their allocation to the federal government over their external debt servicing, contractual obligations among others in September, data obtained from the Federation Account Allocation Committee (FAAC) by Nairametrics revealed.
The FAAC report also disclosed that the deductions were made from the allocations given to state governments from the Federation Account.
Details: 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.
On the other hand, extra allocation is given to the nine oil producing states based on the 13 per cent derivation principle.
An analysis of the Federation Account Allocation Committee report prepared by the Office of the Accountant-General of the Federation showed that the N35.51bn was made up of servicing of N3.64bn, and contractual obligations of N5.79bn.
The sum of N26.08bn was deducted from the states for national water rehabilitation projects, and National Agricultural Technology Support Programme.
Others deductions made under the N26.08bn were salary bailout, payment for fertilizer, state water supply project, state agricultural project and National FADAMA project.
Highlight:
- Lagos State with the sum of N3.23billion recorded the highest deductions in the month of September
- Osun with N2.01billion
- Cross River, Bayelsa, Akwa Ibom and Bauchi followed with N1.72billiion, N1.35billion and N1.33billion, respectively
- Delta recorded deduction of N1.48billion
- Gombe N1.04billion
- Imo N1.13billion
- Ogun N1.42billion
- Oyo N1.31billion
- Plateau N1.79billion
- Zamfara N1.26billion
- Abia, Adamawa and Anambra dropped by N857.52million, N694.85million and N364million respectively
Similarly, the sum of N720.42m was deducted from Benue while Borno, Ebonyi, Edo, Ekiti, Enugu, Jigawa, Kaduna and Kano had N565.29m, N541.43m, N819.37m, N838.26m, N498.21m, N416.84m, N641.21m and N796.32m.
In the same vein, Katsina suffered deduction of N579.66m, Kebbi N552.5m, Kogi N586.64m, Kwara N754.13m, Nasarawa N610.12m, and Niger N831.08m.
Others are Ondo N946.76m, Rivers N972.82m, Sokoto N538.69m, Taraba N648.34m and Yobe N349.19m.
