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FAAC shares N886bn among three tiers of govt

By The Citizen
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The Federation Account Allocation Committee on Thursday shared N886.4bn among the three tiers of government for the month of February.

The February allocation represents an increase of N310.94bn or 54.03 per cent over the N575.46bn shared by the committee to the three tiers of government for the month of January.

Thursday's meeting, which was chaired by the Minister of State for Finance, Dr. Yerima Ngama, was attended by the Accountant-General of the Federation, Mr. Jonah Otunla, commissioners of finance from the 36 states of the federation.

Others were representatives of revenue generating agencies such as the Nigerian National Petroleum Corporation, Federal Inland Revenue Service, Nigerian Customs Service, and the Central Bank of Nigeria, among others.

Otunla, who addressed journalists shortly after the four-hour meeting, said members of the committee also agreed to transfer the sum of N121.41bn into the Excess Crude Account.

The transfer, according to him, brings the new balance in the account to $8.061bn.

He said, 'The gross revenue of N571.67bn received for the month was lower than the N651.26bn received in the previous month by N79.58bn.

'Oil production was equally hampered by pipeline vandalism at Bonny, Forcados and Brass Terminal.'

Giving a summary of the distribution, Otunla said N445.84bn was shared under statutory allocation; N62.707bn was allocated under the Value Added Tax; while N173.595bn was used to augment the shortfall in revenue.

Others are N35.549bn for the Subsidy Reinvestment and Empowerment Programme; N7.617bn being refund of debt owed the Federation Account by the NNPC; as well as arrears of N156.76bn for the month of January due to the late implementation of the budget.

He explained that of the N445.26bn statutory allocation, the Federal Government got N209.86bn, representing 52.68 per cent; the 36 states got N106.44bn or 26.72 per cent; while the 774 local government areas were given N82.06bn or 20.6 per cent.

The AGF added that N47.48bn was shared to the nine oil producing states based on the 13 per cent principle of derivation.