FG explains low statutory allocations in January

Gbola Subair, Abuja - 21.02.2008

The statutory allocations to the three tiers of government for January were small compared to the December 2007 allocations

However, the Federal Government attributed the low allocations to a drop in the quantity of fund available for distribution

In January, the three tiers of government shared N257,906,311.30 compared to the December allocations of N284,245,874,303.50

Out of this sum , the Federal Government received N121.448 billion (about 52.68 per cent), which is a decline of N11.992 billion from the N133.440 it received in the preceding month.

States and local governments received statutory allocations of N61.60 billion (26.72 per cent) and N47.491 billion (20.60 percent), respectively, compared to the previous month’s figures of N67.682 billion and N52.180 billion.

The 13 per cent derivation accounted for the balance of N27.366 billion of the statutory allocation and is to be distributed among the nine oil producing states, Delta, Rivers, Bayelsa, Akwa Ibom, Edo and Ondo etc.

The states got 50 percent (about N15.845 billion) of the N31.691 billion VAT, while both the Federal and local governments shared N4.753 billion (15 per cent) and N11.092 billion (35 percent), respectively.

The state governments had received N16.552 billion as VAT in the preceding month, while the federal and local governments were paid N4.965 billion and N11.586 billion.