FAAC: FG, State, LGAs share N467.807bn

The Federation Account Allocation Committee (FAAC), on Tuesday, disclosed that the allocation for the month of March 2017 increased by N41.420 billion bringing the total allocation shared to the three tiers of government to N467.807 billion.

Briefing journalists at the end of the meeting, the Accountant of the Federation, Mr. Ahmed Idris, who represented the chairman of FAAC and Minister of Finance, Mrs. Kemi Adeosun, explained that the Federal Government received N147.833 billion inclusive of VAT while states and local government got N106.991 and N79.807 billion respectively.

The oil producing states also got the sum of N25.127 billion as its 13 percent oil derivation.

He further explained that despite the increase in the average unit price of crude oil per barrel from $44, 74 to $52, 86, the revenue from the federation export sales dropped by $6, 4 million. This was due to the decrease in crude oil export volume.

Production suffered during the period due largely to leakages in the pipelines arising from sabotage, shut down of terminal for turnaround maintenance (TAM) and the force majeure declared at forcados and brass terminals that were still in place.

There was however a noteworthy increase in revenue from oil royalty. Also significant increases were recorded in revenues from companies’ income tax (CIT), import and excise duties and value added tax (VAT).

The distributable statutory revenue for the month he said was N299.930 billion. The sum of N6.330 billion was refunded by Nigeria National Petroluem Corporation (NNPC) to federal government.

Therefore, the committee proposed distribution of N22.259 billion from the excess petroleum profit tax (PPT) account.

Also, exchange gain of N66.967 billion was proposed for distribution. The total revenue distributable for the current month including VAT is N467.807 billion.

The Chairman, Commissioners Forum, Mr. Mahmood Sali Yunusa, noted that there was an increase of over N13 billion in the revenue, adding that it’s expecting further increase by next month with the increase in oil price and the federal government effort to sustain peace in the Niger Delta Region. “We have shared the money very peacefully, “he said.