REVENUE ALLOCATION? ABUJA GETS MORE THAN 31 STATES.


Do not envy most of the state governors in today's Nigeria; Abuja, although not officially a state, now gets more money to play with than they get individually.

According to the figures on the allocation for the month of March released recently by the National Bureau of Statistics (NBS), from the allocation to the Federal Government, Abuja got N2834.5m gross with N25.5m being deduction for a net of N2809m.

Only five ourtof the 36 states of the federation got that much as net allocation from revenue accrued to the federation in March. These are Akwa Ibom (N8268.4m); Delta (N6427.1m); Lagos (N5464.4m) Rivers (N4077m) and Kano (3423.6m). Every other state got less.

In fact, five states got less than half of the Abuja allocation. These are Osun (N999.7m); Ekiti (N1187.1m); Cross River (N1229.9m); Gombe (N1258.3m) and Plateau(N1400.2m).

Yes, deductions  affected the take of all the states but it made only two more states get less than Abuja. These are Ondo with N2926.9m gross allocation and a net of N1783.2m and Kaduna (net N2641.2m from gross N2849.3m allocation).

In other words, deduction or no deduction, Abuja got allocated more money from the federation account via the federal government share than 29 states got from the March cake sharing.

The federal government itself got N126036.3m or 41.2% of the net revenue; states got 28.4% or N86857.2m; Local governments got 21.2% or N64775.4m and N20093.6m or 6.56% was allocated based on derivation.

In addition, the agencies that collected the revenue spent N8314m or 2.72% collecting the money with the Customs getting N2618.5m; Federal Inland Revenue N4253.2m and Department of Petroleum resourcesN1442.3m.

Of course, deduction at source remains a major challenge for many of the state governments and it reflects how much the present was mortgaged in the past in the form of loans taken then.

Most hit was Cross River with 57.9% of its N2126m gross allocation being deducted to leave it with only N1229.9m.

Osun state was also  hit with 50.4% out of its gross allocation N2016.5m being deducted to leave it with the lowest allocation of N999.7m. Ondo too was hit with 39.1% being deducted to leave N1783.2m.

Ekiti and Plateau states were hit too with 38.2% of their gross being deducted followed by Gombe (36.5%) and even Lagos and Rivers states with 30.3 and 30.4% deduction respectively.

All of these states were far ahead of the total 19% deduction from gross allocation recorded in total shared revenue for March 2016.

Of the March 2016 revenue, N2893.6m was from exchange gain difference which cost nobody anything to collect while VAT contribution came to N64234m out of which FIRS spent N2569.4m collecting.

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