There is a strong warning coming from the Nigerian Extractive Industries Transparency Initiative, NEITI, yesterday. NEITI warned that Nigeria’s debt situation would worsen in the months ahead, while the federal, state, and local governments would find it difficult to fund their 2016 budgets.
This disclosure portends danger ahead, according to NEITI, in its maiden Quarterly Review, the situation would be aggravated by the country’s dwindling revenue profile as seen in the disbursements to the three tiers of government from the Federation Account Allocation Committee.
NEITI disclosed that disclosed that the three tiers of government, received N2.01 trillion from FAAC in the first six months of 2016, dropping by 30 per cent compared to disbursements of N2.89 trillion recorded in the first half of 2015.
It said, “The Federal Government took most of the hit. Total disbursements to the Federal Government fell from N1.23 trillion in the first half of 2015 to N854 billion in the first half of 2016. This represents a 30.9 per cent decline.
Total disbursements to States fell by 30.5 per cent from N1.009 trillion in the first half of 2015 to N701 billion in the first half of 2016.” “For Local Governments, allocations from FAAC dropped by 26 per cent from the N580.63 billion of the first half of 2015 and to the N429.43 billion of the first half of 2016.”
