Nigeria’s 36 States Earned 49% Of Revenue From FAAC In 2017- CBN

The Central Bank of Nigeria (CBN) says total revenue of the 36 state governments in the country grew by a robust 21.3% to N2.992tr in 2017, representing a mere 2.6% of GDP, compared to N2.467tr or 2.4% of GDP in 2016.
Of this amount, according to the CBN’s audited financials for the year ended December 31, 2017, Internally Generated Revenue (IGR) constituted just N765bn or 25.5% of total, up by a mere 2.5% from the level in 2016.

The states however received N1.462tr, or 48.9%, the lion’s share of their revenue, for the period from the monthly Federation Account Allocation Committee (FAAC) distributions (including 13% Derivative Fund).
Value-Added Tax (VAT) pool account yielded N473.8bn, or 15.8%; exchange gain, N123.1bn, or 4.1%; excess Petroleum Profit Tax, N94.5bn, representing 3.2%; just as grants and others (including share of stabilization fund and recovered excess bank changes amounted to N73.8bn, or 2.5%.

A further breakdown of IGR, showed that Lagos garnered a sizeable 68.4%, followed by oil-rich Rivers with 43.3%, and Kwara in the North-Central, 34.4%; while Bayelsa, neighbor to Rivers State came last on the IGR table, which just 5.3% of the 2017 total.
The most significant improvement in IGR was recorded by north-eastern state of Gombe, which increased its IGR by 16.3%, from 12.9% in 2016; ahead of Benue and Abia.

The various states governments however raised their spending level by 15.4% to N3.702tr, representing 3.2% of GDP, with N2.663tr, or 2.3% of GDP, of which 32.6% of recurrent expenditure, accounting for the 71.9% of total. This left capital expenditure at N1.039tr or 28.1% of total, which was 13.4% below the 2016 level.
“Analysis of spending on primary welfare sectors indicated that outlay on education rose by 89% to N305.8bn, above N161.8bn in 2016, and represented 37.9% of the total.

“Also, expenditure on housing, health, agriculture and water supply rose by 177.3%, 148.3%, 34.1% and 6.9% to N57bn, N264.8bn, N123.2bn and N55.7bn, respectively, relative to the levels in 2016,” the report noted, adding that aggregate expenditure on primary welfare sector amounted to N806.4bn, or 0.7% of GDP, and
accounted for 21.8% of total expenditure

https://investdata.com.ng/2018/08/nigerias-36-states-earned-49-of-revenue-from-faac-in-2017-cbn/