Dipo Olowookere
By Dipo Olowookere
A total sum of N5.9 trillion was shared from the Federation Account in 2017 by the Federal, the 36 States and the 774 Local Government Councils in Nigeria in 2017.
This information was revealed by a new report released by the Economic Confidential, a sister publication of PRNigeria, a news release syndication platform.
The amount was in spite of the economic recession witnessed during the period.
It was revealed that while the Federal Government and its agencies received a total sum of N2.5 trillion, the other two tiers of government shared N3.3 trillion.
The total allocation of N3.3 trillion to States and their Local Government Councils was N700 billion above the N2.6 trillion they received in the previous year of 2016.
In its annual detailed investigative report with a table of figures, the Economic Confidential disclosed that among the state recipients, Lagos was the highest recipient of gross allocation with a total sum of N201 billion in the 12 months of 2017.
It is followed by Akwa State, which received N197 billion, Rivers, which got N178 billion, Delta State, which had N175 billion and Kano State, which received N143 billion.
The five states cornered over a quarter (25 percent) of the total allocation for the states and local government councils in Nigeria.
Among the 10 highest recipients from the Federation Account were Bayelsa State, which got N138 billion; followed by Katsina State N103 billion, Oyo State N101 billion, Kaduna State N98 billion and Borno State N92 billion.
The lowest recipients were Gombe and Ebonyi States that got N57 billion each, followed by Ekiti and Nasarawa State N59 billion each and Kwara N61 billion.
The report further disclosed that Edo and Ondo, which are oil-producing states, got N75 billion and N85 billion respectively while another state in the South-South, Cross River State, merely received N68 billion.
The Economic Confidential, Nigeria’s intelligence economic magazine, gathered that factors that influence allocations to states and local government councils from the Federation Account include: population, derivation, landmass, terrain, revenue effort, school enrolments, health facilities, water supply and equality of the beneficiaries.
The Economic Confidential which is circulated at the monthly meeting of the Federation Account Allocation Committee (FAAC) has been publishing the monthly Federation Account Allocation figures since January 2007.
It also publishes the Annual States Viability Index (ASVI) which measures the survival of states on Internally Generated Revenue (IGR) without relying on Federally Collected Revenues, especially from the Federation Account.
