FG, States, LGs share N370bn at FAAC meeting

The three tiers of government, yesterday, shared N 369.88 billion as revenue that accrued into the Federation Account and proceeds from the Value Added Tax, VAT, in the month of November.

The figure represented a decrease of N103.95bn when compared with the N473.83bn distributed in the previous month.

The Minister of Finance, Mrs Kemi Adeosun, who briefed journalists at the end of the Federation Accounts Allocation Committee, FAAC, meeting in Abuja blamed the fall in revenue on the continued crashing of crude oil price at the international oil market.

She attributed the decline in allocation to reduction in revenue which was caused by shutdown and shut-in of production at various terminals during the period.

Adeosun said non-oil revenue was firming up and now playing a major role in the federation revenue at a time that oil revenue has continued to fall.

Her words: 'The gross statutory revenue of N297.45 billion received in the month was lower than the N400.3 billion received in the previous month by N102.86 billion.

'On-going maintenance and the shutdown and shut-in of production for repairs at different terminals during the month continued to impact crude oil and gas revenue negatively.'

A breakdown of the revenue showed that statutory revenue accounted for N297.45 billion; Value Added Tax, N61.18 billion; exchange gain, N4.92 billion and N6. 3 billion refund made by the Nigerian National Petroleum Corporation, NNPC.

The distribution details showed that of the statutory revenue of N297.45 billion, the Federal Government got N139. 5 billion, states N70 billion and local governments N54,55 billion.

The nine oil producing states received an extra N25.6 billion as 13 per cent derivation.

Of the VAT revenue of N61.18 billion, the Federal Government got N8.8 billion, states, N29.36 billion and local governments, N20.55 billion.

Responding to a question on the possibility of workers receiving their salaries before the Christmas celebration with the late approval of allocation, Adeosun said salaries are being paid and people are already getting alerts.

According to her, 'we are very conscious of the need that people are paid in time for the festive season.'