NEITI: FG, others Shared N3.95trn In 6months
The federal, states and local governments shared N3.95 trillion from the Federation Account within the first half of this year the latest Nigeria Extractive Industries Transparency Initiative (NEITI) Review has shown.
The disbursements made by the Federation Accounts Allocation Committee (FAAC) represented 41 per cent increase compared to the N2.79trn disbursed in H1 2017 and a 95 per cent increase over the N2trn disbursed in H1 2016.
The NEITI Quarterly Review issued yesterday provided highlights and in-depth analysis of disbursements by FAAC for the second quarter and the first half of this year.
According to the breakdown, the Federal Government received N1.65trn, States got N1.38trn while local governments got N795 billion. The lowest monthly figure of N635.6bn disbursed in the first half of 2018 was N121.4bn higher than the monthly figure of N514.2bn disbursed in the first half of 2017.
Total FAAC disbursement in the second quarter of this year was 46 per cent higher than that of 2017 and it was 127 per cent higher than that of 2016.
While N2trn was shared in the second quarter of 2018, N1.38trn was disbursed during the same period in 2017, and only N886.38bn was shared in Q2 of 2016, the review issued by Dr. Orji Ogbonnaya Orji, the Director, Communications and Advocacy said.
The recorded increase in disbursements in Q2 of 2018 was the highest to the Federation since the third quarter of 2014, it noted. The positive development was due to the rise in crude oil prices and similar increase in oil production.
“Average oil price in 2016 was $43.5 per barrel, while in 2017 oil price averaged $54.2 per barrel. However, in the first six months of 2018, average oil price was $70.6 per barrel. Thus, on the average, oil price increased by 62.2 per cent between 2016 and the first half of 2018,” it said.
“Total oil production in 2016 was 661.1m barrels while the figure was 690m barrels in 2017. In 2016, average monthly oil production was 55.1m barrels while it was 57.5m barrels in 2017. For the first two months of 2018 for which data is available, average production was 59m barrels.”
The NEITI Report also showed significant increase in VAT disbursements during the period under review. VAT disbursements increased by 35 per cent between the first quarter of 2015 and the second quarter of 2018.
The NEITI Quarterly Review highlighted the need to place priority attention to internally generated revenues.