Seven Oil-producing States Receive N70.3b FAAC Windfall

Seven of the nine oil mineral producing states left Abuja yesterday with a combined cheque value of N70.408 billion being their allocation from the June 2023 revenue distributed by the Federation Account Allocation Committee (FAAC) on Thursday.

Delta State topped the chart with N23,261,593,427.19, according to the breakdown of the allocations.

Rivers State trailed with N13,192,309,721.26,followed by Akwa Ibom State with N12,745,539,724.44 and Bayelsa State with N12,394,003,050.48.

Edo State got N3,400,607,899.11; Ondo State N2,968,156,301.71 and Anambra State N2,386,453,498.68.

The remaining oil producing states of Abia and Imo received N1,577,804,645.31 and N1,386,364,304.46 respectively.

Amongst the non-oil producing states, Borno received a net allocation of N2,215,429,199.27 after N48,678,953.74 foreign loan outstanding against it, among other deductions, was taken from its gross allocation.

Kano, after all deductions had been made, went away with N2,064,843,128.93 and Benue, N2,032,809,639.68.

But it was bad news for Lagos State which returned empty handed and even still has an outstanding debt of N79,711,202.02 to pay.

It was gathered that the state has an outstanding foreign loan of N2,637,685,277.47 that was deducted from its gross allocation, leaving its account with the FAAC in the red.

Gombe State received a net allocation mandate for N423,957,430.32 after deductions, and Bauchi N454,931,200.03.

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In respect of local governments’ gross allocations for the period, Kano with 44 local government areas received a N3,278,667,445.50; the 34 local governments in Katsina got N2,496,105,333.87; Oyo with 33 local government areas was credited with N2,214,857,377.95; and Kaduna with 23 local governments pocketed N2,059,353,609.99.

The eight local government areas of Bayelsa State received N697,768.037.05;Gombe with 11 local government received N891,129,511.36; the 13 local government areas in Ebonyi have N965,808,866.31 to share while the 16 in Ekiti have N1,016,396,834.97.

The six Area Councils of the Federal Capital Territory received N521,264,251.82.

The document also revealed that the last time the FAAC had any information regarding certified subsidy claim was on the 20th of June, 2018 when N4,026,369,698,361.67 was paid out for “certified subsidy claims by PPPRA from January 2010 to December 2015.

Besides, the document says the Nigeria National Petroleum Company (NNPC) is withholding N12,841,029,760,113.20 from 17th May 2012 to 19th July, 2023.

During the Thursday meeting the FAAC agreed to share only N907 billion of the June 2023 distributable revenue of N1.9 trillion.

A sum of N790 billion was saved and the rest used for statutory deductions.

The savings, it said, “will complement the efforts of the Infrastructure Support Fund (ISF) and other existing and planned fiscal measures, all aimed at ensuring that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.

It was learnt that the Federal Government had convinced the governors to save N1 trillion of the June revenue and get FAAC to share the remaining N900 billion in order not to saturate the economy with cash and further worsen inflation.

Sharing the whole N1.9 trillion, the Federal Government argued, would also put additional pressure on the naira and whittle down the desired impact of any palliative measures to cushion the effects of subsidy removal.

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