The 36 state governments received N767.05 billion in net value from the Federation Account Allocation Committee in the second quarter of 2022.
The amount came from different components of the account, including statutory allocations, 13 per cent share of derivation and electronic money transfer levy. Others are ecological funding and the value-added tax (VAT).
The payment is the net value due to the states after deductions such as transfers of 50 per cent of the ecological fund to the Niger Delta Development Commission/Hydroelectric Power Producing Areas Development Commission (HYPPADEC) as well as other obligations the state governments are committed to.
It is also exclusive of the share of the local government councils under their control in line with the horizontal fiscal sharing formula.
According to data sourced from the Federal Ministry of Finance, the National Bureau of Statistics (NBS) and other relevant agencies, the largest share was received in June when the 36 states went home with N264.6 billion.
In April, N262.46 billion was due to the second tier of government while the amount dropped to N239.99 billion in May. VAT earnings contributed the bulk of the receipt, totaling N281.72 billion or 37 per cent of the entire money due to the states from the common resource pool.
In April and May, the state governments received N101.2 and N82.3 billion as a share from VAT earnings while the amount stood at N98.26 billion in the last month of the quarter.
Approximately N7.26 billion also came from the share of the sub-national entities from the ecological fund. The ecological fund was created in 1981 through the Federation Account Act as a special intervention fund to address the various environmental challenges in communities across the country.
