How Nigeria government shared N1.3trillion from Federation Account

The three tiers of Government in Nigeria; Federal, states and local governments, has shared an record N1.3 trillion from the Federation Account and earnings of the Value Added Tax, VAT, earned in the month of June.

The amonut was more than the allocation received from the federation account in the previous month which stood at N606.5 billion.

The Federation Account Allocation Committee, FAAC, which allocates federation revenue to the three tiers of government decided to release the huge funds to the government to enable states commence the implementation of the N18,000 minimum wage.

This month’s huge allocation to the states will not, however, be sustained as it included six months’ arrears totalling N710.71 billion which the committee, chaired by the Minster of State, Finance, decided to release to the three tiers of government.

An analysis of the detailed allocations showed that the Federal Government took N693.79bn representing 2.68 per cent; the 36 states got N351.90bn representing 26.72 per cent while the 774 local governments got N271.30bn or 20.6 per cent.

It also showed that the nine oil producing states got an additional N171.21bn, representing 13 per cent derivation from crude oil revenue.

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