The Federation Account Allocation Committee shared the sum of N3.18trillion to the three tiers of government, between January and May 2021.
They are statutory allocation, Value Added Tax distribution; and allocation made under the 13 per cent derivation principle.
Under statutory allocation, the Federal Government gets 52.68 per cent of the revenue shared; states, 26.72 per cent; and local governments 20.60 per cent.
The Federation Account is currently being managed on a legal framework that allows funds to be shared under three major components.
The framework also provides that Value Added Tax revenue be shared thus: FG, 15 per cent; states, 50 per cent; and LGs, 35 per cent.
Similarly, extra allocation is given to the nine oil producing states based on the 13 per cent derivation principle.
However, data from the Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2022 to 2024 showed that the prorated amount budgeted to be disbursed to the three tiers of government was N3.5trillion.
This resulted in an allocation shortfall of N329.6billion during the period under review.
A breakdown of actual allocation showed that the sum of N640.3billion was shared in January out of which the Federal Government received N226.998billion; states received N177.17billion; the local government councils got N131.4billion, while the oil producing states received N26.78billion as 13 per cent derivation.