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FCT Area Councils Share N2b Revenue, SURE-P Allocations…JAAC Withholds N140.12m From Area Councils Over Unpaid Debt

By The Citizen
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The Federal Capital Territory Area Councils Joint Account Allocation Committee (JAAC) on Wednesday approved the sharing of N2.071 billion among the six Area Councils being revenue and Subsidy Reinvestment and Empowerment Programme (SURE-P) allocations for October 2012.

The Committee, which is chaired by the Honourable Minister of State for FCT, Oloye Olajumoke Akinjide, withheld the sum of N140,129,862.71 being the FCT Administration's 10 per cent Internally Generated Revenue (IGR) pending when the Area Councils settle their accumulated debt.

The Area Councils are: Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje and Kwali.

Akinjide explained that the JAAC's decision to withhold the FCTA's 10 per cent IGR had become necessary to enable the Area Councils clear their outstanding debt of N247.08 million.

The Area Councils owed the sum of N144 million being Fadama III Counterpart Fund, N65.70 million for subsidized tractor sales under the public private partnership arrangement, N7.38 million for 2012 Buffer Stock Grains, and N30 million for biometrics.

Of the total debt, Kwali Area Council accounted for the lion's share of N52.52 million, and closely followed by Gwagwalada Area Council which owed N51.35 million.

Abuja Municipal Area Council (AMAC) and Kuje Area Council owed N49.57 million each; Abaji Area Council, N17.62 million, and Bwari Area Council, N16.45 million.

The minister disclosed that a total sum of N2,211,467,188.86 was received from the Federation Account Allocation Committee for the FCT Area Councils, representing an increase of N317,066,272.41 or 16.7 per cent over the preceding month's figure of N1,894,400,916.45.

The breakdown of the FAAC allocation showed that N1.001 billion was received from the five per cent Value Added Tax, N761.91 million from Statutory Revenue Allocation, N228.48 million from Special Revenue Allocation, N23.10 million from refund by Nigerian National Petroleum Corporation and N56.77 million being the SURE-P allocation for November 2012.

The FCT Area Councils had in September 2012 received VAT of N1.101 billion and Statutory Revenue Allocation of N692.68.

With the decision to withhold N140.12 million from Area Councils over accumulated debt, the sum of N2,071,337,326.15 was available for distribution.

Of the N2.071 billion, the FCT Area Councils Joint Account Allocation Committee distributed N845.98 million to the FCT Universal Basic Education Board (UBEB) for payment of the primary school teachers' salaries in the six area councils; N95.04 million to FCT Area Councils Pension Board (ACPB) being 15 per cent pension fund as statutorily required, and N22.11 million to FCT Area Councils Service Commission being one per cent training fund, also statutorily required.

The net revenue allocation of N1,108,199,947.27 was shared by the six Area Councils, with Abuja Municipal receiving N243.22 million; Bwari, N193.59 million; Gwagwalada, N190.38 million; Abaji, N165.79 million; Kuje, N163.96 million; and Kwali, N151.25 million.

The minister gave the breakdown of the distribution of SURE-P funds as follows: Abaji, N6.96 million; Abuja Municipal, N16.77 million; Bwari, N9.28 million; Gwagwalada, N8.50 million; Kuje, N7.45 million, and Kwali, N7.79 million.

The JAAC meeting was attended by the acting Permanent Secretary, Alhaji Nuhu Ahmed; Kuje Area Council Chairman, Hon. Danladi Etsu Zhin; Bwari Area Council Chairman, Hon. Peter Ushafa; Gwagwalada Area Council Chairman, Hon. Zakari Angulu Dobi; Kwali Area Council Chairman, Hon. J.K. Shazin, and Abaji Area Council Chairman, Hon. Yahaya Muhammad.

Others in attendance at the meeting were: Director, Admin and Finance in the FCT Agriculture and Rural Development Secretariat, Mr. Mr. John Obiahu; Special Assistant to the Minister of State on Area Councils, Alhaji Ibraheem Ibraheem, and Special Assistant to the Minister of State on Environment, Mr. Ayo Sotinrin, among others.