FG Deducts N35.51bn From States’ Allocations As Bail-Out

BEVERLY HILLS, November 29, (THEWILL) – The Federal Government has deducted the sum of N35.51bn from allocation made to the states for external debt servicing, contractual obligations and others.

The deductions, which were for the month of September, were made from the allocations given to state governments from the Federation Account.

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: FG, 15 per cent; states, 50 per cent; and LGs, 35 per cent while extra allocation is given to the nine oil producing states based on the 13 per cent derivation principle.

An analysis of the Federation Account Allocation Committee report prepared by the Office of the Accountant-General of the Federation showed that the N35.51bn was made up of servicing of N3.64bn, and contractual obligations of N5.79bn.

The sum of N26.08bn was deducted from the states for national water rehabilitation projects, and National Agricultural Technology Support Programme.

Others deductions made under the N26.08bn were salary bailout, payment for fertilizer, state water supply project, state agricultural project and National FADAMA project.

Further analyses of the N35.51bn showed that Lagos State with the sum of N3.23bn recorded the highest deductions in the month of September.

This was followed by Osun with N2.01bn while Cross River, Bayelsa, Akwa Ibom and Bauchi followed with N1.72bn, N1.35bn and N1.33bn, respectively.

Delta recorded deduction of N1.48bn, Gombe N1.04bn, Imo N1.13bn, Ogun N1.42bn, Oyo N1.31bn, Plateau N1.79bn, Zamfara N1.26bn, Abia N857.52m, Adamawa N694.85m and Anambra N364m.

Similarly, the sum of N720.42m was deducted from Benue while Borno, Ebonyi, Edo, Ekiti, Enugu, Jigawa, Kaduna and Kano had N565.29m, N541.43m, N819.37m, N838.26m, N498.21m, N416.84m, N641.21m and N796.32m.

In the same vein, Katsina suffered deduction of N579.66m, Kebbi N552.5m, Kogi N586.64m, Kwara N754.13m, Nasarawa N610.12m, and Niger N831.08m.

Others are Ondo N946.76m, Rivers N972.82m, Sokoto N538.69m, Taraba N648.34m and Yobe N349.19m.