Teaching Comparative Government and Politics

Wednesday, December 21, 2011

Bookkeeping in Nigeria

A rentier state is one which receives most of its revenue by selling products in the global market. It means that the government doesn't have to tax citizens much and often feels little responsibility to spend its income for the good of the general public.

An article in Vanguard (Lagos) offers some details on November's income and its distribution in Nigeria.

(As of December 16, US$1.00 = 161.8 Naira; 1 Naira = US$0.0062.)

FG, States, LGs Share N612 Billion

The three tiers of government, yesterday, shared a total of N612.077 billion as their allocations from the federally collected revenue for the month of November, which would be used for their December expenditure…

Detailed analysis of distribution showed that the Federal Government took a total of N194.666 billion made up of N194.132 billion from the Statutory Allocation, representing its 52.68 per cent under the existing sharing formula and another N7.534 billion , representing 15 per cent under the VAT revenue sub- head.

The states and local governments shared the balance based on their allocated revenue formula of 26.72 per cent and 20.60 per cent respectively.

The nine oil producing states got an additional N42.048 billion, representing 13 per cent of the oil revenue generated under the month of November. Similarly, the Federal Inland Revenue Service, FIRS, received N4.1 billion, representing 4 per cent of revenue it generated to cover cost of collection. The Nigerian Customs Service also receive the sum of N2.763 billion, representing 7 per cent of its revenue to cover duties' collection cost.

Other blog entries about rentier states:

Teaching Comparative blog entries are indexed.