Dedicated to Nigeria's socio-political issues
October 3, 2007 - December 2, 2007
ANALYSIS OF TOTAL NET ALLOCATIONS TO FEDERAL, STATE AND LOCAL GOVERNMENTS
(JUNE 1999 – DECEMBER 2005)
August 7, 2006
*The oil revenues quoted are exactly half of the 1999 figures reported in Central Bank reports
Source: Quoted in FMF's "Detailed Breakdown of Allocation to Federal, State and Local Governments June 1999 – December 2005: Transparency in Action Series #3"
Total Net Allocation: Net Statutory Allocation + Crude Oil Excess Proceeds/Additional Allocations + Value Added Tax (VAT)
Re-compiled by NigerianMuse.com
ANALYSIS OF NET ALLOCATIONS TO STATE, LOCAL GOVERNMENTS & FCT
(JUNE 1999 – DECEMBER 2005)
Source: Federal Ministry of Finance publication
RE-COMPILED BY NIGERIAN MUSE......
States Share N673bn Windfall
From Collins Edomaruse in Abuja, 08.09.2006
July 2006 Allocation
Thirty-six states of the Federation and the Federal Capital Territory, Abuja, collectively smiled home in the month of July when they pocketed a whopping N673.324 billion as their share of statutory allocation and excess crude earnings' distribution for the period.
This was revealed in a document from the office of the Accountant-General of the Federation titled: "Distribu-tion of Statutory Allocation (July 06) and Excess Crude Proceeds to the three tiers of government in July 2006", a copy of which THISDAY got yesterday.
The report showed that five of the states: Rivers, Bayelsa, Delta, Akwa Ibom and Kano, catapulted themselves to the two-digits wrung with each carting home between N10 billion and N25 billion.
Leading the pack, Rivers state got a grand total of N25,883 billion which is made up of N10.138 billion from 13 per cent derivation, N12.803 billion from excess crude, N1.39billion from statutory allocation and another N1.5 billion excess crude for local governments in the state.
Similarly, Bayelsa received N7.97 billion from the 13 per cent derivation account as well as N10 billion from excess crude account. The state also had its accounts credited to the tune of N538 million for its councils and another N597.7 million excess crude for the same councils in the state. In total, the state smiled home with a whooping grand total of N19,197,410,
In the same vein, Delta State which garnered a total of N18.622 billion, had its share broken down thus: 13 per cent derivation N6.977 billion; excess crude N8.734 billion; statutory allocation for local governments N1.379 billion and excess crude distribution to the councils N1.531 billion.
The fourth highest beneficiary and another oil producing state of the Niger Delta, Akwa Ibom, has its breakdown as follows: statutory allocation N6.458 billion; excess crude distribution N8.065 billion; statutory allocations for state's councils N1.569 billion while the excess crude account for councils was credited with a whopping N1.738 billion. In total, the state got N17,831,804,
The only non-oil producing state that garnered over N10 billion was Kano. It got N10.776 billion and was distributed as follows: statutory allocation N2.44 billion; excess crude N2.7 billion; statutory allocation for its 44 councils, N2.669 billion and excess crude to same accounted for N2.959 billion.
Conversely, the FCT, Gombe, Ebonyi, Nasarawa and Ekiti States went home with the least allocations of between N673.3 million and N4 billion.
While the document further showed that the FCT got its accounts credited to the tune of N673.324 million, Gombe State became richer with N4.435 billion lumped into its accounts.
Similarly, Nasarawa and Ekiti States received N4.508 billion and N4.732 billion respectively.
Other states which also got huge amounts from the distribution include Ondo with N9,060,035,806.
...For N/Delta Governors, A Golden Opportunity to Make a DifferenceBy Max Amuche, 08.09.2006
How can a people be so blessed yet still live in extreme want? Put differently, how can a person live in the midst of water and still wash his hands with spittle?
Although the states have all been quiet about
the jumbo sums collected, THISDAY checks at the Office of the
Accountant-General reveal they all shared a total of N673
billion which is rather instructive. The July allocations raise
compelling questions and put some governors on the spotlight.
Using the Niger Delta states as examples,
from May 1999 to December 2005, Akwa Ibom received a total of
This means that these four states,
collectively, collected more than N1 trillion between June 1999
and December 2005, about one third of the entire allocation to
the 36 states and the FCT within the same period. While the
entire allocation for the period for all the states and Abuja
was about N3.79 trillion, these four states of the Niger Delta
collected about N1.25 trillion.
Given the state of affairs in the Niger Delta
today, with the spate of kidnapping and violence, the July jumbo
sums, given the key states within the zone, can make a lot of
difference in addressing poverty issues that most often lead to
criminality, if properly applied.
The almost one billion dollars that the four
principal states (River, Bayelsa, Delta and Akwa Ibom) collected
in only one month can indeed provide infrastructure, create
jobs, improve health, education and help with small scale
industries for the people of the region.
While the problems of the region are many and
would require a major intervention from all the stakeholders,
there are still a lot that the governors could do with the
resources now available to them.
It must, however, be stated that the Niger
Delta states are not being singled out for indictment. They are
entitled to whatever they have collected and the 13 per cent
derivation from the Federation Account is the reason why they
get more money than many other states of the federation. If some
of them have failed to deliver democracy dividends to their
people, other state governments are no less guilty. The idea is
to bring home this poverty in the midst of plenty.
Where has all the money gone? That is the
logical question that follows or should follow. All indices or
parameters of development still put Nigeria at the bottom of the
development matrix, in fact, behind less endowed countries in
Africa, even countries we have always bailed out both in cash
and kind, countries that we claim leadership over.
From East to West, North to South, with very
few exceptions, you can hardly see what has been done with more
than three trillion naira in six years. There is massive
unemployment, roads are mere death traps, and atotal breakdown
of infrastructure etc.
Then the Niger Delta. The UNDP report on the
social situation in the Niger Delta released recently painted a
grim picture of life in that part of the country which has been
in international limelight for sometime now.
The Niger Delta Development Report has drawn
attention to the contradiction of mass poverty persisting in the
face of stupendous oil wealth in this region. For instance, the
region may fail to meet the targets in the Millennium
Development Goals except in the area of school enrolment by the
target date of 2015. The authors of the report say it
"recommends a new paradigm of development to address concerns
"such as 'disillusionment, frustration among the people about
their increasing deprivation and deep-rooted mistrust"
The elements of this new paradigm are listed
in the report as a seven-point development agenda namely
promotion of peace as condition for development; making local
governance responsive to people's needs; economic development;
promotion of social inclusion, ensuring a sustainable
environment for socio-economic reproduction; adoption of an
integrated approach to the scourge of HIV-AIDS and building an
enduring partnership for the advancement of human development.
According to the report: "Behind the Niger
Delta's poor performance on human development is a complex brew
of economic, social, political and environmental factors. Social
instability, poor local governance, competition for economic
resources and environmental degradation have taken a toll.
"The general neglect of infrastructure, often
rationalised by the difficulty of the Delta's terrain, has
worsened people's access to fundamental services such as
electricity, safe drinking water, roads and health facilities
that are taken for granted in many other parts of Nigeria. Other
elements include the negative impacts of the oil industry, a
constricted land area, a delicately balanced environment and
extreme economic deprivation.
With the resources currently in their hands, the governors of Rivers, Bayelsa, Akwa Ibom and Delta States can make a world of difference in the lives of their people assuming they have the will.
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This page was last updated on 10/27/07.