FAAC: FG, States, LGAs share N400bn for December

The Federation Account Allocation Committee (FAAC) has shared a total sum of N400 billion to the three tiers of government for the month of December, 2016.

Giving the breakdown during the meeting in Abuja, the Chairman of FAAC and Minister of Finance, Mrs Kemi Adeosun explained that the gross statutory revenue of N248.725 billion was received for the month was higher than the N240,120bn received in the previous month by N8.595bn.

A break down shows that Federal Government received the sum of N105.762 billion representing 52.68 percent and N11.415 billion Value Added Tax bringing the total to N127.177 billion inclusive of (VAT).

The State Government received N91.695bn while the Local Government Areas got 67.993bn respectively. These represent 26.72℅ and 20.60℅ sharing formula.The oil producing states also got N15.504 billion.

The minister noted that there was a revenue decline of $65.40 million in Federation export sales due to a drop in crude oil export volume of N1.390 million barrels.

However the average price of crude oil increased from $47.08 to $47.30 per barrel during the period under review she further pointed out.

She explained that force majeure which was declared at Forcados, Qua Iboe and Brass Terminals remained in place. Federation revenue was negatively affected by several shut-in and shut-down of pipelines for repairs and maintenance due to leakages and sabotage consequently affecting the general revenue outlook.

Collection from royalties increased significantly while increases in companies income tax (CIT) and value added tax (VAT) were marginal she said.

Therefore, the distributable statutory revenue for the month is N224.883bn. Accordingly, the sum of N6.330bn was refunded by NNPC to Federal Government, she pointed out.

She added that “There is a proposed distribution of N42.998bn from the Excess Petroleum Profit Tax (PPT) account.”
Also, “Exchange gain of N52.846bn is proposed for distribution. The total revenue distributable for the current month including VAT is N400.000bn.”

Speaking after the meeting, the newly elected Chairman of States’ Finance Commissioners Forum, Mr Yunusa Mahmoud said the forum has confidence in the way the minister is driving the economy and pledged their supports and co-oporation to the Federal Government to ensure the economy is back on track.

He added that “We are giving ourselves target that from the internally generated revenue of the states, all states should be able to pay workers’ salaries while the federation allocation should be used for capital development.”