Abuja - The Federal Ministry of Finance has revealed that the centrally collected revenue shared by the federal, state and local governments dropped by N2.8 trillion between 2014 and 2015.
The states had found it even harder to pay workers’ salaries until when they were bailed out by the new government of President Muhammadu Buhari.
Analysis of official documents from the Ministry of Finance shows that the three tiers of government shared N8.6 trillion in 2014 but the figure slumped to N5.8 trillion in 2015 due to the continuous global slide in crude oil prices.
Also read: FG, States, LGs share N473.8bn for October
A barrel of crude oil sold for $105.71 in the first quarter of 2014 but plunged to $37.28 in the last quarter of 2015, data obtained from the Central Bank of Nigeria (CBN) shows.
The first half of the year had ended with the federal and the 36 state governments being unable to start the implementation of capital votes totalling N4.2 trillion made up of N3.47 trillion for states and N722 billion for the federal government.
BudgIT, a budget-tracking advocacy group, said in its new report: State of the states, that the three tiers of government were going insolvent for their failure to build adequate fiscal buffers in the past when the crude oil price stood at about $100 per barrel for 42 consecutive months.
Source: Daily Trust
- News 24