Minister of Finance, Kemi Adeosun speaking at FAAC Meeting in Abuja

The three tiers of government shared N2tn in the second quarter of this year, as a result in the increase in crude oil price as well as domestic oil production, the Nigerian Extractive Industry Transparency Initiative has said.

The Director, Communications and Advocacy, NEITI, Dr Ogbonnaya Orji, said in a statement made available to our correspondent on Monday that the disclosure was contained in agency’s Quarterly Review.

Advertise With Us

According to the statement, the federal, state and local governments shared N3.95tn from the Federation Account in the first six months of the year.

Featuring data sourced from the National Bureau of Statistics, the statement also showed that within the first half of the year, Osun State received N10.24bn from the Federation Account, while its account was debited with N14.52bn.

This means that the total deductions from the state’s account was N4.28bn more than it received from the Federation Account. States accounts are debited due to local and foreign debts they have contracted.

In contrast, Delta State received the highest amount of N101.19bn in the first half of the year. Total deductions for the state amounted to N13.81bn or 13.65 percent of the money received from the Federation Account within the period.

The Quarterly Review, according to Orji, further showed that the total Federation Accounts Allocation Committee disbursements in the second quarter of the year were 46 percent higher than the figure for the same period in 2017 and 127 percent higher than for the same period in 2016.

The report noted that while N2tn was shared in the second quarter of the year, N1.38tn was disbursed during the same period last year and only N886.38bn was shared in the second quarter of 2016.

“In fact, quarter two 2018 was the first time an amount of N2tn was disbursed since the quarter three of 2014. This is a run of 14 consecutive quarters of disbursements below N2tn,” the report stated.