Rivers Gets $108m As CBN Shares $2bn To FG, States, LGA’s

The Central Bank last week Nigeria (CBN) last week Friday remitted $2 billion from the excess crude account into the various accounts of the three tiers of government, barely three days after the Federation Account Allocation Committee (FAAC) meeting.

FAAC had during its meeting on Tuesday, October 13, approved the recommendation of the National Economic Council (NEC) to share $2 billion from the foreign Excess Crude Proceeds Account.

The three tiers of government had also in August 2009 shared $2.1 billion from the excess crude proceeds account and when added to the current $2 billion, it represents two per cent of the entire Gross Domestic Product (GDP) of the country.

The Minister of State for Finance and FAAC Chairman, Mr. Remi Babalola, who confirmed this development to journalists, on Sunday, in Abuja, disclosed that the CBN also, gave N350.721 billion to the federal, state and local governments, last week Friday.

The amount is their share of the statutory allocation of the value added tax and budget augmentation for the month of September 2009. The minister explained that the payment of the $2 billion and revenue allocations from the Federation Account was the Federal Government’s immediate efforts to re-energise the economy.

He said, “I received confirmation from CBN on Friday that the $2 billion from the excess crude had been paid into the various accounts of the tiers of government. So, no tier of government is being owed from the approved $2 billion from the excess crude and the N350.7 billion from Federation Account.

“The distribution of the $2 billion is part of government’s immediate efforts to reflate the economy. It will complement other areas that have been worked on to energise the economy. It will particularly mitigate the inadvertent liquidity and credit crunch challenges being faced by the various tiers of government due to the recent banking reforms in the economy.

“By implication, the current challenges of illiquidity and credit crunch in the system are being addressed by this injection. It also means that funds are available for ongoing capital projects at the federal, state and local government levels.”

Babalola had, in March 2008, moved the FAAC meeting from the third week of every month to the second week in order to address the problems of delay in the remittance of the revenue approved by the committee to the accounts of the three tiers of government.

The Federal Government, according to the minister, received the lion share of the distributed excess crude of $841.911 million while the 36 states got $799.648 million. The 774 local government councils accounted for the balance of $358.440 million of the excess crude.

State-by-state analysis of the excess crude revealed that Rivers received $108.696 million; Akwa Ibom, $103.465 million; Delta, $86.630 million; Bayelsa, $52.050 million; Ondo, $30.347 million; Kano,$19.771 million; Lagos, $17.859 million; Imo, $17.154 million; Edo, $16.491 million; Kaduna, $15.775 million; Abia, $15.287 million; and Katsina, $15.035 million.

Others are Borno, $14.905 million; Bauchi, $14.655 million; Niger, $14.629 million; Oyo, $14.610 million; Jigawa, $13.841 million; Benue, $13.509 million; Sokoto, $13.043 million; Cross River, $12.735 million; Anambra, $12.636 million; Kebbi, $12.576 million; Kogi, $12.545 million; and Adamawa $12.510 million.

Taraba was paid $12.354 million, Zamfara, $12.298 million; Plateau, $12.269 million; Yobe, $12.261 million; Ogun, $12.226 million; Enugu, $11.803 million; Osun, $11.596 million; Kwara $11.432 million; Gombe $11.095 million; Nasarawa, $10.711 million; Ekiti, $10.461 million; and Ebonyi, $10.371 million.

In addition to the $2 billion, the three tiers of government were paid N350.721 billion from the Federation Account. Statutory revenue accounted for N235.121 billion of the money shared from the Federation Account, while Value Added Tax and budget augmentation amounted to $36.529 billion and $51.192 billion, respectively.

Rivers State Governor, Rt Hon Chibuike Rotimi Amaechi (2nd right), his deputy, Engr Tele Ikuru (3rd left), the State Speaker, Rt Hon Tonye Harry (right) and other members of the State House of Assembly during the governor’s visit to the House to mark his second year anniversary, yesterday. Photo: Ibioye Diama