FG, states, LGs received N1.86trn FAAC in Q1’20 — NEITI

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Simonson Harry

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Apr 21, 2020
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N/East Commission, 3 others got N95bn
Warns that all tiers of govt would face funding challenges in 2020


Nigeria Extractive Industries Transparency Initiative (NEITI), yesterday, said that the Federal, States and local governments received N1.86 trillion out of about N1.95 trillion distributed from the Federation Account Allocation Committee (FAAC) in the first quarter of 2020.

NEITI, in its Quarterly Review, disclosed that the federal government received N791.4 billion; the 36 states shared N669 billion, while about N395 billion was shared by the 774 local government areas.


It added that the balance of N95 billion went to the North East Development Commission, the Excess Crude Account, Federal Inland Revenue Service (FIRS), Nigeria Custom Service (NCS) and the Department of Petroleum Resources (DPR).

NEITI, however, warned that the COVID-19 pandemic would seriously impact government’s revenue, adding that all tiers of government would face difficulties in funding their budgets.


It said, “on prospects of FAAC disbursements for the rest of the year as a result of the impact of COVID-19, the review remarked that in light of the ‘double whammy’ of declining oil demand and oil prices as a result of the COVID-19 pandemic, government revenue would likely continue to fall in subsequent months.

“As global crude oil prices plummet in the midst of the global oil supply glut arising from lockdown of economic activities in many countries of the world, all tiers of government will struggle to fund their 2020 budgets.”


NEITI further noted that the first quarter 2020 FAAC disbursements were the highest first quarter disbursements since 2014.

On FAAC disbursements to states between January and March this year, NEITI stated that there was a wide disparity between states as Osun State with the lowest allocation received N6.44 billion and Delta State with the highest disbursement received N52.03, a difference of 708 per cent.

NEITI also disclosed that Delta State’s net FAAC disbursements were higher than the combined total net disbursements of N50.67 billion of the six lowest receiving states, comprising Osun, Cross River, Plateau, Ogun, Ekiti and Gombe.