… Delta, Akwa Ibom, Bayelsa Govs Decry Biased Propaganda War
…How Wike, Dickson, Udom, Okowa, Others Netted N145 Billion
…Inside Details of Actual FAAC Allocations To The 36 States, FCT
…States Weighed Down By Workers Wages, Ispos, Loans, Debts
In the light of the ongoing furore over the actual amounts the 36 states in Nigeria got as allocations from the Federation Account Allocation Committee, FAAC, for the month of June shared in July, The New Diplomat, in its investigations, has unearthed the actual amount accrued to each state.
The total amount from FAAC to the three tiers of government for the month of June shared in July is N540billion with a sharing formula of 52%, 26% and 22% between federal, state and local Governments.
Some national dailies (not The New Diplomat) had hit the airwaves with incorrect figures of what accrued to the states as allocations for the month of June, leading to accusations and counter accusations, with most of the affected states issuing rebuttals on the figures peddled in the media.
However, documents at the disposal of The New Diplomat show that the 36 states and the Federal Capital Territory shared the sum of N145billion representing 24 per cent of the total allocation in the month of July with Akwa Ibom, Lagos and Rivers being the top three.
Akwa Ibom received the sum of N9, 161, 091, 074, while the duo of Lagos and Rivers got N8, 297, 557, 903 and N6, 826, 140, 006 respectively.
This is the largest share for the states from the FAAC in 2016.
The increase, the highest in the administration is attributed to efficiency in revenue collection by revenue generating agencies, especially the Federal Inland Revenue Service, FIRS.
Another reason given for the increase is the payment of Company Income Tax,CIT, by companies as it is usually paid between June and August every year.
The report showed that the revenue distributed included the Gross Statutory Revenue, Value Added Tax (VAT), Forex gain, solid minerals revenue from 2007 to 2014 and 13 per cent derivation to oil-producing states.
Abia State got N166, 591, 941 as 13% per cent share of derivation, Akwa Ibom got N5, 147, 046, 274, while Bayelsa got N3, 126, 869, 735.
Delta, Edo, Imo, Ondo and Rivers states got N2,692,782,410, N135,627,219, N214,078,218, N751,610,755 and N3,599,566,911 respectively.
Persistent militant activities and disruption of crude activities in the Niger-Delta is one of the reasons fingered as responsible for drop in derivation.
This much was attested to by the Delta State Commissioner for Information, Mr. Patrick Ukah, in an interview with The New Diplomat when he said that it was unimaginable for anyone to think that Delta State received a whopping N18.6 billion as allocation when oil pipelines have been blown up and most of the oil companies have suspended production and selling of crude oil. He added that the state government has not received up to N9 billion since it came into power.
Said he: “Where will you get N18.6 billion when your pipelines have been blown up? Where will you get N18.6 billion when Chevron where we used to get the highest IGR has stopped working in that place and has moved out? Are you aware that Seplat Oil Company has not been able to lift any oil? So, where do you get the money? Is it not when Seplat and Chevron lift that government can get revenue from?
On the other hand, Lagos State got the bulk of its revenue allocation from VAT. The state received N6, 349, 790 964, the highest among the states.
Before distribution, state liabilities in form of contractual obligations, external debts and Irrevocable Standing Payment Order (ISPOs) were deducted.
Lagos state topped the list of states with the highest amount of external debt, the state is indebted to the tune of N377, 218, 633, closely followed by the duo of Cross River and Kaduna states with external debt profiles of N166, 407, 004 and N124, 439, 748 respectively.
Lagos state also topped the list of states with ISPOs with the state servicing its contractual obligations with N2billion. Bayelsa and Delta followed closely with N1, 241, 107, 428 and N1, 098, 907, 642 respectively.
