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FG, States, LGs Share NGN780Billion in April 2020

FG, States, LGs Share NGN780Billion in April 2020

The Federation Account Allocation Committee (FAAC) disbursed the sum of NGN780.93 bil-lion to the three tiers of government - Federal, States, and Local Governments - as revenue allocation for April 2020. The disbursement is about 34 per cent higher when compared with the NGN581.57billion distributed for March 2020. The disbursement was from the reve-nue generated in the previous month which comprised NGN478.18billion from the Statu-tory Account, NGN119.50billion from Excess Crude Oil Revenue, NGN120.27billion from Valued Added Tax (VAT) and NGN62.98billion from Exchange Gain Differences.A breakdown of the disbursement showed that the Federal Government received a total of NGN264.33 billion, while the 36 States of the federation shared a total of NGN181.49 billion. The 774 Local Governments shared a total of NGN135.95 billion, while NGN54.29 billion was distributed among the oil pro-ducing states as 13 per cent derivation fund. Revenue generating agencies, namely the Ni-geria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Pe-troleum Resources (DPR) received NGN6.09 billion, NGN10.20 billion and NGN5.74 billion, respectively as cost of revenue collections.

Disbursement for April 2020 showed a significant increase despite dwindling government revenue owing to the economic consequences of the coronavirus (COVID-19) pandemic. The increase is part of the fiscal measures announced by the Federal Government to create fiscal cushion for all tiers of government in the face of the pandemic. Specifically, the government plans to withdraw about $150 million from the Nigeria Sovereign Investment Authority (NSIA) Stabilization Fund to support FAAC disbursements. This trend might likely continue in the short to medium term.

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