FAAC: FG, States, LGAS share N415.730bn for April

The federation allocation account committee, FAAC, Tuesday distributed the sum of N415 billion to the three tiers of government.

Chairman of FAAC and minister of finance, Mrs Kemi Adeosun who was represented by the Accountant General of the federation, Mr Ahmed Idris, said that the gross statutory revenue of N274.210 billion received for the month was lower than the N331.583 billion received in the previous month by N57.473 billion.

Giving the breakdown, Mr Idris said the federal government received N136.633, state governments got N103.842 while the local given the councils received N77.112 including the Value Added Tax (VAT).

The Federal Inland Revenue Service, FIRS received 4 percent Cost of Collection from the N56.562 billion generated for the month.

Nigeria Customs Service also took 7 percent cost of collection from the N43.468 billion generated in April 2017.

The Department of Petroleum Resources also got its 4 percent cost of collection from the N36.115 billion generated for the month.

The oil producing states also received N22.640 billion being the 13% mineral revenue derivation of N174.151 billion generated from the sale of crude oil.

Total amount in the Excess Crude Account, according to the Accountant General of the Federation, stood at $2.299 billion as at May 23, 2017. While the Excess Petroleum Profit Tax, EPPT also stood at$67 million.

There was a significant increase in Export Sales Revenue by about $63.69 million due to the increase in the average unit price of crude from $55.86 to $55.38 per barrel and a rise in crude oil export volume by 1.07 million barrels.

Despite the improvement, production still suffered the perennial setbacks.

Leakages arising from sabotage and programmed maintenance led to shut-ins and shut-downs at terminals. The force majeure declared at forcados terminal since February, 2016 was still in place.

The distributable statutory revenue for the month is N272.115 billion. The sum of N6.330 billion was refunded by the Nigeria National Petroluem Corporation (NNPC) to the Federal Government.

There is a proposed distribution of N20.425 billion from excess petroleum profit tax (PPT) account.

Also, exchange gain of N38.517 billion is proposed for distribution.

The total revenue distributable for th current month including VAT is N415.730

Expressing displeasure with a drop in revenue, the chairman of Finance Commissioner’s Forum, Mr Mahmood Yunusa said, the states are worried, adding that “we expect that by next month there should be a remarkable improvement.

“Based on the expectation, we are almost getting out of recession. The recession I’d a blessing in disguise because i has made respective states to look inward in improving their revenue.”

Quizzed on why states still owe salaries despite special salary bail out fund created by the Federal Government, Mr Yunusa said states used the salary loans granted them by the Federal Government.

He however failed to explain why some states still owe salaries but stoutly defended Adamawa State saying, “I can speak for my state, Adamawa, we are not owing any salary.

We pay salaries alongside the pensions. We are even paying small portion of gratuity.”

He added that no state government would like to owe salary.