NBS Report: Allocation drops 6.2% as FAAC disbursed N639.9bn in October

The Federal Account Allocation Committee (FAAC) disbursed a sum of N639.9 billion to the three tiers of government in October 2020 from the revenue generated in September 2020.

This is contained in the latest monthly FAAC disbursement report, released by the National Bureau of Statistics (NBS) and analysed by Business Metrics.

The report indicated 6.2 per cent drop in the monthly disbursement compared to N682.1 billion shared in September and 5.4 per cent decline compared to N676.4 billion shared in August 2020.

Further breakdown of the NBS report shows that Federal Government received a total of N255.75 billion (39.97%).

States received a total of N185.65 billion (29.01%), and Local governments received N138.44 billion, representing 21.64% of the total disbursement.

The sum of N36.19 billion was shared among the oil-producing states as 13% derivation fund.

The report also show that revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Department of Petroleum Resources (DPR), received N6.50 billion, N8.54 billion, and N2.77 billion respectively as cost of revenue collections.

Further breakdown of allocation to the Federal Government of Nigeria (FGN) revealed that the sum of N180.75 billion was disbursed to the FGN consolidated revenue account, N4.48 billion as share of derivation and ecology.

Similarly, N2.24 billion was disbursed to stabilization fund, N7.52 billion for the development of natural resources, and N5.74 billion for the administrative upkeep of the Federal Capital Territory (FCT) Abuja.

The amount disbursed comprised of N341.50 billion from the Statutory Account, N72 billion from Distribution of FGN Intervention Fund, Distribution of N45 billion from Non-Oil Revenue, N39.54 billion from FOREX Equalisation Account, and N141.86 billion from Valued Added Tax (VAT).