Nigeria’s three tiers of government- Federal, States, Local Government shared N400 billion for the month of December, 2016 during the monthly Federation Account Allocation Committee (FAAC) meeting on Friday in Abuja.
Chairman of FAAC and Minister of Finance, Mrs. Kemi Adeosun, on explained that the gross statutory revenue of N248.725 billion received for the month was higher than the N240, 120 billion received in the previous month by N8.595 billion. A break down shows that Federal Government received the sum of N127.177 billion inclusive of Value Added Tax (VAT), the State Government received N91.695 billion while the Local Government Areas got 67.993 billion.
The minister noted that there was a revenue decline of $65.40 million in FederationEXPORT sales due to a drop in crude oil export volume of 1.390 million barrels. However the average price of crude oil increased from $47.08 to $47.30 per barrel during the period under review, she further pointed out. She explained that force majeure which was declared at Forcados, Qua Iboe and Brass Terminals remained in place. Federation revenue was negatively affected by several shut-ins and shut-down of pipelines for repairs and maintenance due to leakages and sabotage consequently affecting the general revenue outlook.
Collection from royalties increased significantly while increases in companies income tax (CIT) and value added tax (VAT) were marginal, she said. “Therefore, the distributable statutory revenue for the month is N224.883bn. Accordingly, the sum of N6.330bn was refunded by NNPC to Federal Government,” she pointed out. She added that “There is a proposed distribution of N42.998bn from the Excess Petroleum Profit Tax (PPT) account.
“Exchange gain of N52.846bn is proposed for distribution. The total revenue distributable for the current month including VAT is N400.000bn.” Speaking after the meeting, the newly elected Chairman of States’ Finance Commissioners Forum, Mr Yunusa Mahmoud said the forum has confidence in the way the minister was driving the economy and pledged their supports and co-operation to the Federal Government to ensure the economy is back on track. He added that, “We are giving ourselves target that from the internallyGENERATED revenue of the states, all states should be able to pay workers’ salaries while the federation allocation should be used for capital development.”