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Federation allocation drops to all time low

The federation accounts allocation committee (FAAC) has shared N547.309 billion to the three tiers of government. The allocation which is for the month of May is the lowest federal allocation since the beginning of this year.


Analysts link this to the effect of the COVID-19 pandemic. Crude oil prices have crashed and economic activities ground to a halt after the imposition of a global lockdown to contain the spread of the coronavirus.

Hassan Dodo, director of information in the ministry of finance, budget and national planning, said the allocations were made after a virtual meeting chaired by Mahmoud Isa-Dutse, the permanent secretary in the ministry.

FAAC allocation in January was N716 billion. The three tiers of government shared N581.566 billion in February.

This to N780.926 billion in March but dropped to N606.196 billion in April.

Of the N547.309 billion for the month of May, the federal government received N219.799 billion, state governments got N152.436 billion and local government councils received N114.095 billion.

The oil producing states also got N37.021 billion as 13 percent derivation fund.


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