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Hard Times Ahead: Federation Allocation Drops to N547bn

The Nigerian economy is currently reeling from the impact of COVID-19 and experts warn that unless governments across all levels enact cost cutting measures, the economy may be in bigger peril. 

These are certainly not the best times for the Nigerian economy and if the figures from the Federation Accounts Allocation Committee (FAAC) are anything to by, tougher times lie ahead after it emerged that the three tiers of government  shared N547.309 billion for the month of May, the lowest in 2020.

Oil prices in the international market crashed in the wake of the COVID-19 pandemic and economic activities were suspended in most parts of the world following the imposition of lockdown to contain the spread of the virus.

In a statement on Wednesday, Hassan Dodo, director of information in the ministry of finance, budget and national planning, said the allocations were made after a virtual meeting chaired by Mahmoud Isa-Dutse, the permanent secretary in the ministry.

According to figures from FAAC, the three tiers of government shared N716 billion,  N581.566 billion, N780.926 billion, and  N606.196 billion in January, February, March and April respectively.

The director of information explained that of the N547.309 billion for the month of May, the federal government received N219.799 billion, state governments got N152.436 billion and local government councils received N114.095 billion.

The oil producing states also got N37.021 billion as 13 percent derivation fund. Value Added Tax (VAT) for May rose by N9.377 billion to N103.873 billion.

The Nigerian economy is currently reeling from the impact of COVID-19 and experts warn that unless governments across all levels enact cost cutting measures, the economy may be in bigger peril.

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