The three tiers of government received a total of N4.95tn instead of N6.1tn projected to be distributed to them in the 2016 fiscal year from the Federation Account Allocation Committee, investigation has shown.

This created a shortfall of about N1.1tn within the 12-month period based on the analysis by our correspondent.

The committee, headed by the Minister of Finance, Mrs. Kemi Adeosun, is made up of commissioners of finance from the 36 states of the federation.

Other members are representatives from the Federal Inland Revenue Service; the Nigeria Customs Service; Revenue Mobilisation, Allocation and Fiscal Commission as well as the Central Bank of Nigeria.

The federation account is currently being managed on a legal framework that allows funds to be shared under three major components – statutory allocation, Value Added Tax distribution; and allocation made under the derivation principle.

Under statutory allocation, the Federal Government gets 52.68 per cent of the revenue shared; states, 26.72 per cent; and local governments, 20.60 per cent.

The framework also provides that Value Added Tax revenue be shared thus: the Federal Government, 15 per cent; states, 50 per cent; and local governments, 35 per cent.

Similarly, extra allocation is given to the nine oil producing states based on the 13 per cent derivation principle.

Findings also revealed that the inability of the revenue generating agencies to meet up with their revenue targets owing to the challenges facing the economy was largely responsible for the dip in revenue, which impacted negatively on the allocations to the three tiers of government.

Figures of statutory allocations obtained from FAAC revealed that while the government had projected to distribute N509.1bn monthly among the three tiers of government, the shutdown of oil installation facilities, which led to a drop in crude oil production, made it difficult to generate enough revenue to achieve that target.

For instance, within the 12-month period of last year, the government could only surpass the monthly budgeted allocation to the three tiers of government thrice.

The months are August, where the highest amount of N691bn was shared; July, which had a total allocation of N559.03bn; and September, which had N510.27bn.

A further analysis showed that the sum of N387.77bn was allocated in January; February had N370.38bn; while March, April and May had N345.09bn, N299.74bn and N281. 5bn, respectively.

For the months of June, October, November and December, the committee distributed N305.12bn, N420bn, N386.87bn and N400bn in that order.

The Chairman, Forum of Finance Commissioners of FAAC, Mahmoud Yunusa, while speaking during an interview in Abuja on the sidelines of this month’s FAAC meeting, said the scarcity of resources to implement the programmes of government owing to the economic recession had made it imperative for states to be prudent and transparent in financial management.

He said, “The resources are no longer there and so whatever resources that we have must be effectively, transparently and judiciously used for the benefit of the people.

“The expectations of the people are very high and the resources are very lean day by day and so we have to add value to the people. People are clamouring for change and we have to look for a way to ensure that the lives of people are changed.”

He said the states would work with the Federal Government to address the current recession in the country.

Yunusa, who is also Commissioner for Finance in Adamawa State, said that the target of the states was to generate enough revenue internally to pay salaries.

He stressed that once this was done, whatever allocation received from the federation account would be used by the states for capital projects.

He said, “The recession is a problem but we should see it as a blessing in disguise because before now, all the states relied solely on the Federal Government but now because the money is no longer there, we are forced to look inwards for the opportunities and potential in our respective states and how to exploit them.
“We have to reduce the cost of governance and plug all the loopholes in our expenditure.”

He added that the challenge had helped the states to look at their revenues and restructure their expenditures to fit into the realities on the ground.

http://www.kikiotolu.com/2017/01/fg-states-lgs-record-n11tn-shortfall-in.html

Lalasticlala Mynd44 seun Dominique

Can anything good come forth from this zoo?

There will be Light at the end of the dark Tunnel

redcliff:
Can anything good come forth from this zoo?

This country just weak me.

Wow,second to comment.Happy Sunday to all of you.

“The tests we face in life's journey are not to reveal our weaknesses but to help us discover our inner strengths. We can only know how strong we are when we strive and thrive beyond the challenges we face.”

― Kemi Sogunle

The once strong economy is weeping under Sai Baba. What a leader?!!

.

And you don't want me to wish that cow death?

Anyway

Ungrateful bastards

When dullards are in power....
There tends to be shortfalls in allocations... The country is in autopilot and finished...

We pray that other regions wake from sleep on contributing theirs resources to National treasury. Imagine if this is the case our finacial problem will not be so hard like this.

Even with TSA implemented, u still record shortfalls in revenue... May God so help 9ja.

The N1.1. thrillion would have been looted anyway.

it is understandable that there would be a shortfall. this had been known since late 2013...

which begs the question, why propose to spend so much when all indices indicate a drop in your major source of revenue?

Nigeria is in the economic mess it is today because of piss poor planning.

in order to grandstand, this regime over reached itself thereby losing sight of what should ordinarily be its priorities.

when a regime thinks that a budget over N1b for Social Media Influencers Idiots is more important, there will always be a problem.

knowhowk:
There will be Light at the end of the dark Tunnel

baba

989900:
You should blame Buhari if he sponsors pipeline vandals, and if he is responsible for world oil prices.

When last did u hear vandalism and currently Nigeria is producing about 1.9million bad. Oil price have risen fairly. We the citizens of Nigeria shouldn't give the government appraisal for failure.

Is there still LGs in Nigeria?
If this foolish governments had been pumping monies into LGs/villages, there won't be recessions.
In 2019 these same politicians without your interest at hearts will come back to fools us again with lies of "We Will Do This, We Will Do That When We Come To Power"

Exactly the way I feel about this government..
No trust atol..

nice.... let the suffering increase! APC! Change!!

nice.... let the suffering increase! APC! Change!!

What was the 2015 amount for proper comparison?

This man is just an embodiment of stupidity, bad decisions and badluck

1Rebel:
This man is just an embodiment of stupidity, bad decisions and badluck

Which man,commissioner of finance for Adamawa?

sanandreas:

When last did u hear vandalism and currently Nigeria is producing about 1.9million bad. Oil price have risen fairly. We the citizens of Nigeria shouldn't give the government appraisal for failure.

Devil I know you wish President Buhari's government no well. Keep your dirty appraisal to yourself demon.