FAAC: FG, States, LGs share N370.38bn in January

By The Citizen
Listen to article

Following the fall of Crude oil prices in the International market , the total revenue accruable to the Federation for distribution to the three tiers of Government has been affected.

Consequently, a total of N370,388 billion was shared yesterday as Federal Allocation for the month of January, 2016.

The communiqué issued by the Accountant General of the Federation, Mr Ahmed Idris FCNA at the end of the Federation Accounts Allocation Committee (FAAC) meeting in Abuja, indicated that the Gross Revenue of N370,388 billion received for the month of January, is lower by N17,383 when compared with the N387,771 billion distributed in the month of December 2015.

The shortfall is attributed to revenue loss of $22.55m arising from drop in average price of Crude oil from $43.40 in the month of November to $39.04 in the month of December, as well as shut down and shut-in of production due to repairs and maintenance of terminals during the month.

Speaking further on the shortfall, Minister of Finance, Mrs. Kemi Adeosun, while addressing the Media after the meeting, said that meeting Nigeria National Petroleum Corporation (NNPC) cash call obligation to its Joint venture partners had further reduced the money available for sharing among the tiers of government.

She revealed that NNPC is already working out modalities of introducing modified carry arrangement to reduce the further depletion of the amount available for sharing by Federation pending when the situation on the oil market improves.

Accordingly, the breakdown of amount shared include N290.961 Billion from Mineral and Non- mineral Revenue; Value Added Tax of N69.719 billion which also was higher by N7,648 billion when compared with the N62.071 billion shared the previous month; Exchange gain of N3.378 billion and N6.330 billion refunded to the Federal Government by Nigerian National Petroleum Corporation( NNPC).

However, details of the Statutory revenue distributed for the month of January stand as follows: Federal Government received N137.473 billion (52.68%); States received N69.728 billion (26.72%); Local Government Councils received N53.757 billion (20.60%); while the Oil Producing States received N22.380 billion as 13% derivation revenue.

In addition, the breakdown of the Value Added Tax (VAT) distribution for the month include: N10.040 billion (15%); States N33.465 billion (50%) while the Local Government Councils got N23.426 billion (35%).