FAAC May Allocation Dips 5% To N289bn | Independent Newspapers Limited
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FAAC May Allocation Dips 5% To N289bn

president of the federal republic of nigeria, muhammadu buhari
Posted: Jul 4, 2016 at 6:08 am   /   by   /   comments (0)

The Federal Accounts Allocation Committee (FAAC) distributed N289 billion in May to the various tiers of government inclusive of bank and DPR charges, according to a recent release by the National Bureau of Statistics (NBS).

The May numbers represent a 5 percent dip compared to the April allocations of N306 billion.

The Federal Government got N118, 913,661,309.74 while states made do with N83, 661,720,036.79 and local governments took N62, 276,957,592.80.

Oil producing states were allocated N16,015,762,594.81.

Akwa Ibom State got the biggest share of N6.587 billion followed by Lagos with allocation of N5.553 billion. Delta State picked up the next biggest allocation of N4.207 billion, a little more than N4.061 billion picked up by Rivers State.

Bayelsa State got N3.4 billion while states like Abia, Adamawa, Anambra, Bauchi, Benue, Enugu, Imo, Jigawa, Kaduna, Kano, Oyo and Sokoto got a little above N2 billion. The rest were allocated revenues in the range of one billion.

Dwindling revenue may not be unconnected to falling oil price and increasingly lower oil output in Nigeria from militants’ activities.

The oil industry, with its history of booms and busts, has been in its deepest downturn since the 1990s, if not earlier, leading to plunging price of a barrel of oil, which at one point fell more than 70 percent compared with June 2014 levels.

Prices have recovered a few times this year, and lately Brent crude crossed the $50-a-barrel threshold for the first time in nearly seven months. But prices are still below what producers need to drill profitable wells.

Attacks on pipelines have slashed crude output to the lowest level in 27 years and shut all but four of the country’s 23 gas-powered generators, leaving much of the country without electricity.

A group calling itself the Niger Delta Avengers has claimed responsibility.