FG, States Received N3.88tn From FAAC In Six Months

EFCC Discovers 49m Naira At Kaduna Airport

 

 

The Federation Accounts Allocation Committee (FAAC) on Tuesday said it shared N3.879 trillion to the Federal Government, States, local government areas, and other statutory recipients in the first half of 2020.

In a statement by the committee’s Director, Communications and Advocacy, Orji Ogbonnaya, the Federal Government received a total of N1.53 trillion while the states got N1.29 trillion and the 774 local government areas received N771.34 billion.

Mr Orji stated that the figures, based on the latest edition of the quarterly review of the Nigeria Extractive Industries Transparency Initiative (NEITI), were very volatile.

Giving a further breakdown, Mr Orji explained that the N1.53trillion received by the FG in H1 2020 was 4.28% lower than the N1.599 trillion it got in the first half of 2019 and 7.36% lower than the N1.652 trillion it received in the first half of 2018.

Similarly, he stated that it was the same “for states, a total of N1.298 trillion was disbursed in the first half of 2020. This was 2.8% lower than the N1.35 trillion disbursed in the first half of 2019, and 5.6% lower than the N1.375 trillion disbursed in the first half of 2020.

“For local government areas, the 2020 first half disbursements were 2.64% and 3.04% lower than the corresponding disbursements for 2019 and 2018 respectively.”

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Mr Orji pointed out that the total FAAC disbursements in the second quarter of 2020 were slightly lower than the N1.945 trillion disbursed in the first quarter of 2020. This aligned with the projections made in the previous issue of the NEITI Quarterly Review which projected lower FAAC disbursement in the second quarter.

He added that the NEITI report attributed the 0.55% decrease in Q2 2020 to a couple of factors, namely: “rebound in oil prices in the second quarter as a result of ease of lockdowns by countries across the world and the adjustment of the official exchange rate by the CBN from N307/$1 to N360/$1 in March resulting in higher naira disbursements.

“Disbursements were very volatile in the first half of 2020, compared to 2018 and 2019. Unlike 2018 and 2019 where aggregate disbursements increased and decreased in successive months, in 2020 they fell for two straight months, increased in one month, and then decreased for two straight months,” he stated.

The NEITI spokesman also disclosed that from January to May 2020, actual government revenue was N1.62 trillion, representing “62% of the expected pro-rata revenue of N2.62 trillion from the revised budget”. That also explained a shortfall of 38% in government revenue for the first five months of the year. As oil prices continue to rise, and with the increased pace of economic activities, NEITI projects that “Government revenue will perform better in the second half of 2020, with the possibility of shortfalls in revenue compared to budgeted figures.”

He stressed that the net FAAC disbursements and deductions for states for the first half of 2020 had wide disparities.

“Total net disbursements received by Delta State (N100.81 billion) were higher than the combined total net disbursements of N99.47 billion received by six states – Osun, Cross River, Plateau, Ogun, Gombe, and Ekiti.

“Also, the combined total net disbursements of N321.29 billion received by the four highest receiving states of Delta, Akwa Ibom, Rivers, and Bayelsa were higher than the combined total net disbursements of N314.08 billion received by 16 states – Osun, Cross River, Plateau, Ogun, Gombe, Ekiti,  Zamfara, Kwara, Nassarawa, Ebonyi, Taraba, Benue, Adamawa, Ondo, Bauchi, and Abia”. While Lagos State had the highest deductions, Yobe State had the lowest,” he stated.

Niger State Gov. Presents 108bn Naira Budget For 2017

Niger State Gov. Presents 108bn Naira Budget For 2017The Niger State Governor, Abubakar Sani Bello, has presented 2017 fiscal year budget proposal of over 108 billion Naira to the state House of Assembly for passage.

The budget tagged ‘Budget of Consolidation’ is N22.9 billion and 21.27% more than the 2016 budget.

Governor Bello, while presenting the budget to the members of the state House of Assembly on Friday, said that the proposed budget comprises of a recurrent expenditure of N48,047,960,278 which is 44.45% of the budget and Capital Expenditure of N60,026,337,973 which is 55.55% of the budget size.

The Governor stated that the budget would be generated through Statutory Allocation of N50,695,206,724, Value Added Tax (VAT) of N8,793,474,040, Internally Generated Revenue of N12,403,874,117, Paris Club loan N13,400,000,000 and Capital Receipts of N22,781,770,379.

He further said that the budget would focus on Youth and Women Empowerment as they constitute a large part of the population; completion of projects; enhancement of IGR; re-introduction of teachers’ colleges; transformation of education and development of waterworks.

The Speaker of the state House of Assembly, Rt. Hon Ahmed Marafa, in his remark, said that the lawmakers would ensure the passage of the bill in a shortest possible time and would intensify effort in monitoring the 2017 budget performance so as to provide social amenities to the people in the state.

The Commissioner of Information, Culture and Tourism, Hon Jonathan Vatsa,  while reacting to the budget presented by the Governor to the state House of Assembly, says that the Governor has good intentions for the people of the state focusing on youths and women empowerment and re-introduction of teachers colleges, transformation of education in the state.

Gaidam Presents 2017 Appropriation And Finance Bills

Yobe, new boards, chief executivesThe Yobe State Governor Ibrahim Gaidam, on Friday, presented the 2017 appropriation and finance bills to the state assembly for its scrutiny.

In the 2017 budget, the Governor said his administration intends to spend the sum of 69.3 billion Naira, which represents a 22% reduction to that of the outgoing fiscal year.

He told the House that in the 2017 fiscal year, government is earmarking 39.5% to cater for capital expenditure, while the recurrent expenditure is put at 60.5%

Tagged “budget of consolidation and self-reliance”, it also represents a decrease of 19.5 million Naira, compared to that of last year.

Governor Gaidam said the down size will ensure budget realism for the attainment of realistic results in the implementation of earmarked programmes.

“This decision is informed by the economic recession, occasioned by the fall in price of oil and consequent need to ensure budget realism for attainment of optimum result in the implementation of planned programmes.

“In spite of the daunting challenges experienced as a result of paucity of funds at the disposal of government, we still remained focused to make concerted efforts, aimed at improving the quality of life of the citizens of the state” the Governor said.

The 2017 budget according to him, is to be executed with funds to be generated from internal revenues, statutory allocation, value added tax, ecological fund, excess crude oil, external and internal loans among others.

Giving a review of the 2016 budget performance, Mr Gaidam said of the 88.9 billion Naira estimated for the year, the total revenue received from all sources covering the period from January to November, amounted to 49.8 Naira giving 56.1% of the required target for the year.

The Governor called on well-meaning people of the state and other interested parties to support his administration in the realization of his developmental objectives.

“In the implementation of the budget, we will involve every patriotic citizen of Yobe, our development partners and indeed all other stakeholders to make meaningful contributions towards realization of the set developmental objectives.

“In so doing, emphasis shall as usual be placed on observance of due process, probity, accountability and transparency, which are the essential hallmarks of good governance” Gaidam said.

Ayade Presents 2017 Budget To Cross River House of Assembly

Ayade Presents 2017 Budget To House of AssemblyThe Cross River State Governor, Ben Ayade, has presented the 2017 Appropriation Bill of 301 billion naira to the state House of Assembly.

Christened ‘Budget of Infinite Transposition’, the budget, according to the Governor, seeks to achieve three cardinal objectives of improving and expanding infrastructure through Public Private Partnership, planting the tree of the state future revenue generation and gradual industrialization of the state.

Giving a breakdown of the budget, N81,142,339,895.32 is allocated for recurrent expenditure while N220,060,873,053.48 is allocated for capital expenditure.

The recurrent expenditure represents 24.8% of the budget while the capital expenditure represents 75.2% of the budget estimate.

He said that the state intends to fund the budget from Internally Generated Revenue (IGR), Statutory Allocation, Capital Receipts and Projected Investor Revenue from Direct Foreign Investments.

According to the estimate, N81,142,339,895,32 is expected to be generated through IGR, N41,676,220,113.64 from statutory allocation, 76,070,524,023.85 from donor agencies, 38,474,892,065.29 from the Federal Government’s Economic Recovery Fund and 63,839,236,850.70 from revenue from investments.

Making the presentation, Ayade informed the Assembly that it was the desire of his administration in 2017 to focus on the superhighway because it is the main energy that will open up the vista of opportunities for prosperity.

Describing the size of the appropriation bill as ambitious, Ayade said he was optimistic that it can be achieved because when there is cash deficiency, the intellect takes over.