FG and States Get The Disbursed N652.229b From FAAC

Minister of Finance, Mrs. Kemi Adeosun

The Federation Accounts Allocation Committee (FAAC) has announced the disbursement of N652.229billion to the Federal Government and states. The Accountant General of the Federation (AGF) Idris Ahmed announced this after the FAAC meeting.

Ahmed, who represented the Minister of Finance, Mrs. Kemi Adeosun, said the money was generated from Value Added Tax (VAT), Petroleum Profit Tax (PTT) and customs duty collection.

This is coming one week after the Paris Club loan refunds to the states. Some states received N4 billion, while others got as much as N10 billion from the Federal Ministry of Finance.

The committee meets every month to collate and distribute federation revenue to the three tiers of the federation. According to the minister, the gross statutory revenue for June was N570.584 billion, pointing out that it was N253.022 billion higher than N317.562 billion which was realised in May and shared in June last month.

Giving further breakdown, he revealed that non- mineral revenue increased by N181.2 billion from N157.5 billion in May to N338.8 billion in June. He added that N29.8 billion was shared to oil- producing states as their 13 per cent oil derivation, while Federal Inland Revenue Service (FIRS) refund stood at N22.1 billion.

He announced that going by the sharing formula arrangement, the Federal Government got N286.650 billion, while states got N178.619 billion. The 774 local governments were allocated N134.927 billion.

The AGF also disclosed that the decrease in the average price of crude oil from $55.18 to $50.27 per barrel and a significant decrease in export volume by 3.20 million barrels resulted in decreased revenue from export sales for the federation by $183.68 million.

“Crude oil production suffered due to leakages, shut-ins and shut-downs at terminals for maintenance as the force majeure declared at Forcados Terminal since February 2016 subsisted.

“There were significant increases in Companies Income Tax (CIT) being the peak period for its allocation and PPT. Also VAT, import and excise duties recorded marginal increases,” he said.

On the status of Lagos as an oil producing state, the AGF said: “Lagos has been identified as an oil producing state and that is the first hurdle it crossed.
Now, the regulatory agencies will assess the state to determine the quantum of oil the state possesses.

“That job is on course and Lagos knows its position that it would be entitled to 13 per cent of value of oil obtained from the state.”

The Chairman of the Forum of States’ Finance Commissioners, Mahmoud Salihu Musa from Adamawa State, said all states were working hard to improve their internally generated revenues.

Source: - Matthias Okwe | The Guardian | July 26, 2017.