By Joseph INOKOTONG
The Federation Account Allocation Committee (FAAC) Tuesday shared N415.730 billion to the three tiers of government being April 2017 allocation.
Accountant –General of the Federation, Ahmed Idris, who represented the Minister of Finance, Mrs. Kemi Adeosun said the gross statutory revenue of N274.210 billion received for the month, was lower than the N331.583 billion received in the previous month by N57.473 billion.
She said there was a significant increase in Export Sales Revenue by about $63.69 million due to increase in the average unit price of crude from $55.86 to $55.38 per barrel and a rise in crude oil export volume by 1.07 million barrels.
According to the Minister, the Federal Government received N136.633 billion; state governments got N103.842 billion, while the local governments received N77.112 billion including the Value Added Tax (VAT).
The Federal Inland Revenue Service, FIRS received 4 percent Cost of Collection from the N56.562 billion generated for the month. Nigeria Customs Service also took 7 percent cost of collection from the N43.468 billion generated in April 2017. The Department of Petroleum Resources also got its 4 percent cost of collection from the N36.115 billion generated for the month. The oil producing states received N22.640 billion being 13 percent derivations.
“However, despite the improvement, production still suffered the potential setbacks. Leakages arising from sabotage and program maintenance led to shut-ins and shutdowns at terminals. The force majeure declared at Forcados terminal since February, 2016 was still in place”, she said.
The distributable statutory revenue for the month was N272.115 billion. The sum of N6.330 billion was refunded by the Nigeria National Petroleum Corporation (NNPC) to the Federal Government.
There was a proposed distribution of N20.425 billion from excess petroleum profit tax (PPT) account. Also, exchange gain of N38.517 billion was proposed for distribution.
The chairman of State Commissioners of Finance Forum, Mr. Mahmood Yunusa said, states were worried that the money shared would not be enough to enable them pay workers’ salaries, stressing “we expect that by next month there should be a remarkable improvement.”
Meanwhile, the Excess Crude Account balance dropped to $2.29 billion on May 23 from $2.49 billion on April 25.
Alhaji Idris, also stated that the allocations from the Federation Account to the three tiers of government also declined by N52. 07 billion from the N467.8 billion shared in March to N 415.73 billion in April this year.
Similarly, a decrease of N57.47 billion was also recorded in gross statutory revenue from N331.58 billion in March to N274.1 billion in April.
Mr. Idris explained further that the Federal Government received N163.89 billion while states and the 774 local government councils received N117.59 billion and N87.77 billion, respectively.
Meanwhile, N29.83 billion was shared to the oil-producing states based on the 13 per cent derivation principle, while the revenue- generating agencies received N16.52 billion as cost of revenue collection.
According to Mr. Idris, the decrease in revenue to crude oil production setbacks was caused by sabotage and shutdown of installations, especially in the Niger Delta region.
“Despite the improvement (in prices of crude oil), production still suffered the perennial setbacks,” he said.
FAAC: FG, States, LGs share N415bn April Allocation
By Joseph INOKOTONG