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FAAC shares N648.7bn to FG, States, LGAs for September

FAAC

The Federation Account Allocation Committee (FAAC) had distributed a total of N648.710 billion to Federal, States and Local Government Areas for the month of September 2018.

The gross statutory revenue for the month was N569.281 billion, which was lower than the N627.139 billion shared for August by N57.858 billion.

Chairman of FAAC and Minister of Finance, Mrs. Zainab Shamsuna Ahmed, presided over the meeting.

Ahmed noted that crude oil export sales increased by 0.17 million barrels resulting in increased revenue to the Federation of $8.48 million. However, the average unit price dropped from $77.10 to $75.69.

There was shutdown of pipelines which resulted in shut-in of production at various pipelines. Revenue from Royalties increased significantly while Value Added Tax (VAT), Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) decreased significantly.

The breakdown for the month of September shows that the gross revenue available from the VAT was N79.154 billion as against N114.542 billion distributed in the preceding month, resulting in a decrease of N35.388 billion.

The report also indicated that while the Federal Government got N277.197 billion, the state and local governments got N172.810 billion and 130.534 billion respectively.

Derivation (13% of mineral revenue) amounts to N52.596 billion and cost of collection/transfer and FIRS Refund was put at N15.572 billion.

“The distributable Statutory Revenue for the month is N569.281 billion. The total revenue distributable for the month (including VAT and Exchange Gain Difference) is N648.710 billion,” she said.

The Minister tasked members of the committee on the need to maintain transparency and instill a saving culture for the rainy day.

She said: “We have to save. We are not only saving for today but for tomorrow.”

A communique issued by the Technical Sub-Committee of FAAC after its meeting held on Wednesday, October 24, 2018 and signed by the Accountant-General of the Federation, Ahmed Idris, stated: “The next FAAC meeting will hold during National Council of Finance and Economic Development (NACOFED), proposed for Wednesday, November 28, 2018 in Kaduna.”

Meanwhile, the report of the committee on the Excess Crude Account (ECA) was stepped down and withdrawn to enable the committee to rework and represent it at the next meeting.

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Ihesiulo Grace

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