Nigerian Government to share N5.7 trillion to FG, states, LGs this year

The total sum of N5.7 trillion is being planned to be distributed among the three tiers of government as allocations for the 2016 fiscal year.

The framework covers the period 2016 to 2018 and was sent to the National Assembly by President Muhammadu Buhari late last year for approval.

A breakdown of the N5.7tn shows that the sum of N4.3tn is being planned to be shared under statutory sources from the Federation Account, while the balance of N1.4tn is to be shared from the Value Added Tax pool account.

From the N4.3tn, the fiscal strategy paper revealed that the Federal Government would get the sum of N2.2tn, representing 52.68 per cent; the 36 states of the federation, N1.14tn or 26.72 per cent of the total; while the 774 local government councils are to get N886.5bn or 20.6 per cent.

For the VAT revenue of N1.4tn, the document states that the Federal Government is expected to get the sum of N212.4bn or 15 per cent; the states, N708bn or 50 per cent; while the local governments are to get the balance of N495.6bn or 35 per cent.

The document also states that out of the N2.2tn allocated to the Federal Government from the Federation Account, the sum of N43bn, representing one per cent, will go to the Federal Capital Territory; ecological and derivation, N43bn; statutory stabilisation, N21.5bn or 0.5 per cent; and development of natural resources, N72.3bn or 1.68 per cent.