Nigeria

More Money in Nigeria as FG, States, LGCs Share N605.9bn for May

Friday, June 25, 2021 at 8:31 AM by Aanu Adegun

The total sum of N605.958bn has been shared by local, state and the federal government as May allocation
According to the allocation committee, FG received N242.120bn, states got N194.19bn while LGs got N143.742bn
Meanwhile, the distributed revenue in the month of May is lower than in previous months according to reports

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The federal, state governments and local councils will have money to execute some of their projects and pay salaries following the sharing of the federal allocation for the month of May.

This is as the Federation Accounts Allocation Committee shared the money to the three tiers of government.

The federal government received N242.120bn, the states received N194.19bn, and local government councils got N143.742bn, while oil-producing states received N26.901bn as derivation, The Punch Newspaper reports.

About N605.9bn has been shared by the FG, states and LGC for the month of May — FG, states, LGCs share N605.9bn for the month of May. Photo: Femi Adesina
Source: Facebook

These were disclosed in a statement issued in Abuja by the spokesperson of the Federal Ministry of Finance, Budget and National Planning, Charles Nwodo, The Guardian added.

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The communique issued by the committee at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax for May was N181.078bn as against N176.710bn distributed in April, resulting in an increase of N4.368bn.

It outlined the distribution as follows: The federal government got N25.260 billion, the states received N84.202bn, and local government councils got N58.941bn.

The distributed statutory revenue of N428.198bn received for the month was lower than the N497.385bn received for the previous month by N69.197bn.

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From this, the federal government received N175.541 billion, states got N89.037bn, LGCs got N69.644bn, and 13 per cent derivation from mineral revenue got N24.666bn.

According to the communiqué, companies income tax, and oil and gas royalties, import and excise duty recorded decreases, while VAT increased marginally.

It also revealed that the total distributable revenue of N605.958bn for May was inclusive of Gross Statutory Revenue of N357.888bn, VAT of N168.403bn, Solid Mineral Revenue of N7.940bn, Exchange Gain of N1.727bn, and augmentation from Non-Oil of N70bn.

Why we borrowed more money - FG

Meanwhile, Legit.ng reported that Ahmed, the minister of finance, budget and national planning said Nigeria has had to borrow more than it had planned before the COVID-19 pandemic started.

The minister stated this in an interview on a daily breakfast show on the Nigerian Television Authority (NTA). Ahmed explained the federal government had to take the decision because it needed to still continue to invest in infrastructure despite the damaging effects of the pandemic on the economy.

She said:

"We borrowed to invest in key projects such as roads, rail, airports, seaports and several other investments that are required in health and in education and upgrading the social standards and quality of life of our people and Nigeria is not unique as several countries of the world went into recession."

Declining revenue

Legit.ng had also reported that the revenue from Nigeria's oil and gas exports declined by 45.98 per cent in 2020, as it stood at $2.62 billion against the $4.85 billion the Nigerian National Petroleum Corporation reported in 2019, resulting in a loss of $2.23 billion.