FAAC: FG, States, LGAs share N345.095bn for February

The Federation Account Allocation Committee (FAAC) on Tuesday shared the total sum of Three Hundred and Fourty Five billion, Ninety Five Million Naira (N345.095bn) inclusive of Value Added Tax (VAT) as the statutory allocation distributed amongst the three tiers of government for the month of February; indicating a further drop in the monthly allocation compare to what was shared in the previous months.

Chairman of the Committee and Minister of Finance Mrs. Kemi Adeosun, represented by the Permanent Secretary of the ministry, Mr Mahmoud Isa-Dutse said that the gross revenue of N270.499 billion received for the month was lower than the N290.961 billion received in the previous month by N20.462 billion.

Given the breakdown of the sharing formula in accordance with the constitution, the Federal government received N127.200 representing 52.68 per cent; as against N242.647 receipted for January.

State Government received N64.518 representing 26.72 per cent as against N123.074 received last month while the Local Governments Councils got N49.780 which represents 20.60 per cent compare to the N94.885 received in previous month.

He said that oil production increased slightly between December 2015 and January 2016 despite explosions at Escravos terminal, force majeure declared at Brass terminal, shut-in and shut-down of pipelines at other terminals for repairs and maintenance.

The Permanent Secretary who presided alongside the Accountant General of the Federation Ahmed Idris also noted that there was revenue loss of $45.90 million as a result of drop in average price of crude oil from $39.04 in December 2015 to $29.02 in January 2016.

According to him, a substantial drop in income was recorded from oil and gas royalty, Companies Income Tax and Import Duty.

However, he explained that the Nigeria National Petroleum Corporation (NNPC) refunded the sum of N6.330 billion to the federal government.

Also, he noted that there was exchange gain of N3.485 billion which was proposed for distribution bringing the total revenue distributed among the three tiers of government to N345.095 billion including VAT.

The Committee also disclosed that the amount currently in the Excess crude Account (ECA) has risen from $2.5 billion to $2.59 billion.

The oil producing state also received the sum of N42.051 as 13 per cent derivation of mineral revenue of oil and gas.

Revenue collecting agencies namely: Nigeria Customs Service got N2.783 billion representing 7 per cent cot of collection, Federal Inland Revenue Service (FIRS) received N2.182 representing 4 per cent cost of collection while the Department of Petroleum Resources (DPR) got N1.157 per cent also representing 4 per cent collection cost.