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NEITI: FAAC disbursment drops to N1.9trn — hits five-quarter low

NEITI: FAAC disbursment drops to N1.9trn — hits five-quarter low
September 09
10:56 2019

Disbursements from the federation accounts allocation committee (FAAC) hit a five-quarter low in the second quarter of 2019.

According to a report released by the Nigeria Extractive Industries Transparency Initiative (NEITI), the three tiers of government shared N1.91 trillion in the second quarter of 2019.

This is lower than the N1.92 trillion and N2.99 trillion disbursed in the first quarter of 2019 and the fourth quarter of 2018.

The last time FAAC disbursement was at this point was in the fourth quarter of 2017 when N1.70 trillion was disbursed.

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“The figure reveals that the total disbursement of N1.913 trillion in the second quarter of 2019 was the lowest since the fourth quarter of 2017 when N1.700 trillion was disbursed,” the report read.

According to the document, a total of N3.842 trillion in the first half of 2019 with the federal government receiving N1.59 trillion, states, N1.33 trillion; and local governments, N792 billion.

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The analysis also showed that Delta state became the highest recipient of federal allocations in the first half of 2018.

“Delta State was the fourth-highest recipient of FAAC disbursements in H1 2017. However, the state had become the highest recipient in H1 2018, and this first position was maintained in 2019.

“Delta State received N41.66 billion in the first half of 2017 but this surged to N101.19 billion in the first half of 2018. This represents a 142.89% increase. The amount received by the state increased further in the first half of 2019 to N108.7 billion. Thus, in the first half of 2019, the disbursement received by Delta State was 7.42% higher than its receipt in the first half of 2018 and 160.92% higher than its receipt in the first half of 2017.”

The disbursement due to state and local governments are determined by landmass, population, internally generated revenue and social development factor.

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