The federal, states, local governments and others shared N3.84trn between January and June this year, data contained in the latest edition of NEITI Quarterly Review, showed. The data examined “FAAC Disbursements to the Federal, States and Local governments for the first half of 2019.”
According to the data, during the same period, nine states representing 25 per cent of all the states of the Federation had net disbursements higher than the first half of 2018.
A breakdown of the FAAC disbursement showed that the FG received N1.599trn, the 36 states got N1.335trn while the 774 LGs shared N792bn during the period under review.
The disbursements of N3.84trn by FAAC in the first half of this year were slightly lower than the N3.94trn disbursed by FAAC during the same period in 2018 but higher than the N2.78trn disbursed in the first half of 2017.
In addition, the quarterly FAAC disbursements from Q1 2013 to Q2 2019 reveal that the total disbursement of N1.913trn in the second quarter of 2019 was the lowest since the fourth quarter of 2017 when N1.700trn was disbursed. The figure shows that three quarters of 2018 had total disbursements above N2trn.
The NEITI Quarterly Review which combined new data for the 2019 second quarter with previously examined data for the 2019 first quarter showed that increase in revenues witnessed in the first half of 2018 and 2017 were not sustained in 2019, as revenues in first half of this year were slightly lower.
The analysis, conducted using data obtained from the National Bureau of Statistics, Office of the Accountant General of the Federation and FAAC showed that, “in the first half of 2019, total disbursements to FG were N1.599trn.
This amounted to 41.61 per cent of the total amount disbursed over this period. This amount was lower than the N1.652trn disbursed in the first half of 2018 but higher than the N1.098trn disbursed in the first half of 2017.
Thus, disbursements to FG in the first half of 2019 were 3.22% lower than disbursements in the first half of 2018 but 45.56 per cent higher than disbursements in the first half of 2017”.
Similarly, total disbursements to state governments in the first half of 2019 were N1.335trn, compared to N1.375trn and N923bn in 2018 and 2017 respectively. This indicates that disbursement to states in the first half of 2019 was 2.9% lower than the first half of 2018 but 44.7% higher than the first half of 2017.
Delta State maintained the lead among states with the highest share of FAAC allocation during the period with N108.7bn while Osun received the lowest amount of N10.09bn. The difference between these states revenue is N98.6bn. Delta State received N41.66bn in the first half of 2017 but this surged to N101.19bn in the first half of 2018. This represents a 142.89% increase”.
The publication further disclosed that 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. For the 774 LGs, N792bn was received in the first half 2019, compared to N795bn and N549bn respectively in the first half of 2018 and in the first half of 2017.
This implied that, “disbursements to local governments in the first half of 2019 were 0.4% below disbursements in the first half of 2018, and 44.11% higher than disbursements in the first half of 2017’’, the data showed.