Our fiscal federalism is ………funny
According to the distribution of revenue allocation to State Governments by Federation Account Allocation Committee for the month of April, 2016 Shared in May, 2016,……Bauchi State receives more in gross allocation from FAAC than any oil producing state…
To be clear, Bauchi State gets more Gross Allocation than Abia, AkwaIbom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers…….
To put this in perspective, AkwaIbom, Delta and Rivers have more Local Governments than Bauchi State.
By population according to the Nigerian census results, Rivers has more Nigerians than Bauchi…
so how does Bauchi State get more gross allocation than say Rivers?
Lets look at the horizontal sharing formula for FAAC…
1. Equality – 40%
2. Population – 30%
3. Landmass/Terrain – 10%
4. Internally Generated Revenue – 10%
5. Social Development Factor – 10%
2. Population – 30%
3. Landmass/Terrain – 10%
4. Internally Generated Revenue – 10%
5. Social Development Factor – 10%
For purpose of emphasis, the Social Development Factor comprised of Education (4.0), Health (3.0) and water (3.0)
so
1. by Equality, Rivers and Bauchi get the same…
2. by Population, Rivers should get more than Bauchi…
3. by Landmass,Bauchi should get more than Rivers
4. by IGR, Rivers should get more than Bauchi
5. by SDF, Rivers should get more than Bauchi
2. by Population, Rivers should get more than Bauchi…
3. by Landmass,Bauchi should get more than Rivers
4. by IGR, Rivers should get more than Bauchi
5. by SDF, Rivers should get more than Bauchi
so how does Bauchi State get more gross allocation than Rivers State?
note before you comment, the issue is not Rivers or Bauchi State but how FAAC gross disbursements are actually calculated……any guidance will be appreciated.
(Photo credit: Statisence)
