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FAAC: FG, states, LGAs share N467.8bn for July

The Federation Account Allocation Committee (FAAC), on Tuesday, shared N467.852billion to the three tiers of government including Value Added Tax (VAT).

The total amount shared for the month of July was lower than the N570.584bn distributed for the June allocation in July.

Chairman of FAAC and Minister of Finance, Mrs. Kemi Adeosun, said that the gross statutory revenue of N387.319bn received for the month, was lower than the N570.584bn received in the previous month by N183.266bn.

Giving the breakdown, the Federal Government received N193.048bn VAT inclusive.

The states governments got N130.691 billion while the local government areas received N98.014bn.

Adeosun, who was represented by the Permanent Secretary, Mr Mahmoud Isa-Dutse, said that the increase in average price of crude oil from $50.27 to $51.05 per barrel; and a significant increase in export volume by 1.20 million barrels, resulted in increased revenue from export sales for the federation by $62 million.

He said that despite the increases, there were issues of leaking flow lines, shut-ins and shut-downs at terminals for maintenance and the force majeure declared at Forcados Terminal since February, 2016, subsisted.

There was a drastic fall in revenue from companies income tax due to the expiration of the deadline for filing returns.

Oil royalty recorded a reasonable increase but revenue from import and excise duties decreased slightly.

The distributable statutory revenue for the month is N387.852bn, while the total revenue distributed for the current month was N467.852bn.

The Excess Crude Account as at July 2017, stood at $2.3bn.

The oil producing states also received N31.591bn, as 13% derivation of mineral oil and gas revenue.

Meanwhile, the Chairman of Finance Commissioners’ Forum, Mr. Mahmood Salim Yunusa, said that some of the state governments have increased their internally generated revenue (IGR), in line with the federal government’s drive for increased revenue generation.

Mathew Dadiya and Nafisa Abubakar

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