A whopping sum of N6.16tn was withdrawn from the Federation Account and shared among the three tiers of government in the 2012 financial year, investigations have revealed. The figure is the total amount allocated under various distribution sub-heads, as approved by the legal framework upon which the account is being managed.
They are statutory allocation, which is shared in the following manner: Federal Government, 52.68 per cent; states, 26.72 per cent; and local governments 20.60 per cent; Value Added Tax (Federal Government, 15 per cent; states, 50 per cent; and LGs, 35 per cent); and extra allocation given to oil producing states based on the 13 per cent principle of derivation.
