FG, states, LGAs share N821.9bn as Buhari orders review of NNPC’s remittance

The Federation Account Allocation Committee (FAAC) has distributed a whopping N821.9billion to the three tiers of government for the month of June, barely a week when it shared N668.8 billion to the three Federal, States, and Local Government Areas.

Giving a breakdown of the allocation on Friday for the month of June, the Chairman of FAAC and Minister of Finance, Mrs Kemi Adeosun, said that after deductions for cost of collections, the Federal Government received N283.54bn.

The 36 states governments received N143.81 billion, while the Local Government Areas received N110.87 billion, all in accordance with the constitutional sharing formula.

Adeosun further disclosed that N37.4billion representing 13 per cent of the mineral revenue generated in the month of June, was also shared among the oil producing states.

To this end, Adeosun said the nation generated N393.17billion as mineral revenue and N294.17 billion as non-mineral revenue in February.

She said that in the spirit of saving for a rainy day, N100billion was transferred to the Excess Crude Account, making the balance $2.27billion.

In the same vein, President Muhammadu Buhari has ordered the review of the revenue reporting template between the Nigerian National Petroleum Corporation (NNPC) and the FAAC.

Adeosun conveyed the President’s directive on Friday while giving a breakdown of how N821.9billion revenue generated in June was shared among the three tiers of government.

She said, “As you are aware, in the last couple of FAAC meetings, the accounts presented by NNPC were not acceptable by the states and so Mr. President asked to be briefed on the issue.

“Based on that briefing, Mr. President asked for further information to be provided by both the Ministry of Finance and the NNPC.

“Last Thursday, he held a meeting with myself, the Chief of Staff, the Minister of State for Petroleum and the NNPC team.

“Mr. President gave some certain directives; one which relates to FAAC is the need to revise the template.

“It was ascertained that the reporting template between the NNPC and FAAC was not providing the right level of assurance around the figures.

“It is for this reason that he has directed that a new template be generated jointly between the Ministry of Finance, the office of the Accountant-General, NNPC and RMAFC.”

Adeosun also said that Buhari had directed that henceforth, before FAAC meetings, a team from the Ministry of Finance and the NNPC should go through the figures and agree before presenting it to FAAC members.

Meanwhile, the Chairman, Commissioners for Finance Forum, Mr. Mahmoud Yunusa, said the state governments agreed with the decision of Buhari to review the revenue reporting template of the NNPC.

He added that the Committee would monitor the development closely to ensure that it achieves the desired effect.