The Federation Account Allocation Committee disbursed a total of N2.05tn to the three tiers of government and other statutory recipients in the third quarter of the year, figures released on Tuesday by the Nigeria Extractive Industries Transparency Initiatives showed.
According to NEITI, this was despite the COVID-19 pandemic and its attendant socioeconomic consequences.
A breakdown of the figures showed that the Federal Government received N812.22bn; state governments, N676.5bn; while Local Government Areas got N429.16bn.
“This was the first time that total disbursement has exceeded N2tn for a quarter in 2020,” NEITI stated in its latest Quarterly Review.
The review analysed FAAC disbursements in the third quarter of 2020, using data from the National Bureau of Statistics and the Revenue Mobilisation, Allocation and Fiscal Commission.
“Total disbursements of N2.05tn in 2020 Q3 were 6.2 per cent higher than total disbursements of N1.93tn in 2020 Q2, and 5.6 per cent higher than total disbursements of N1.95tn in 2020 Q1,” the report stated.
It, however, noted that the disbursements in 2020 Q3 were lower than those of the corresponding quarters in 2019 and 2018 as a whole and to the three tiers of government.
According to the review, 2020 Q3 disbursements were 9.6 per cent lower than the N2.27tn disbursed in the third quarter of 2019 and 9.8 per cent lower than the N2.28tn disbursed in the third quarter of 2018.
Explaining further, the review stated that the Federal Government received N812.22bn in the third quarter of 2020, which was 11.7 per cent lower than the N920.2bn and 10.2 per cent lower than the N904.8bn it received in the third quarters of 2019 and 2018 respectively.
The states, on the other hand, received a total of N676.5bn in the third quarter of 2020, showing a decrease of 6.6 per cent when compared to the N724.16bn they got in the third quarter of 2019, and 5.9 per cent lower than the N718.5bn they received in the third quarter of 2018.
The Local Government Areas got a total of N429.16bn in 2020 Q3 and this was 9.6 per cent lower than the N441.19bn they got in 2019 Q3 and 9.8 per cent lower than the N432.1bn they received in 2018 Q3.