Nigeria’s revenue squeeze is hitting harder as the latest data from the by Federation Account Allocation Committee, FAAC net statutory allocations to states for the month of July shows that all the 36 states and the FCT shared a total of NGN145,3 billion.
The revenue is shrinking further as a result of falling oil prices, disruption in oil ouputs, a recession gaining momentum, external debt repayments and contractual obligaations that states have already tied themselves.
Within the month of July, a total of NGN1,6 billion was paid out by states for all external debts repayments. Lagos stated paid the highest in external debts with a total of NGN377 million while Cross River state paid the next bigger amount of NGN177 million. However, the state with the lowest external debt repayment for the month is Taraba state with NGN12,8 million in repayment.
As per payments for contractual agreements meant for ongoing and completed capital projects, Lagos paid the highest amount of NGN2 billion while the most unexpected state, Bayelsa paid NGN1,2 billion to contractors. Oyo state paid the least amount of NGN99 million. Moreover, 19 other states are not did not get any dedeuctions for the month.
As opposed to the buzz over the fact that Lagos state will start earning 13% derivation revenue because of its oil producing status, the state was not paid any amount for the appellation.
