The Federation Accounts Allocation Committee (FAAC) distributed the sum of N386.9 billion among the three tiers of government in December 2016, being the statutory allocations for the month of November.
The distributable monthly allocation declined by N33 billion compared to amount shared in November. However, the gross revenue for the month under review was higher by N1.404 billion compared to the previous allocation.
Addressing newsmen shortly after the monthly FAAC meeting held at the Federal Ministry of Finance Headquarters in Abuja, the Minister of Finance, Mrs Kemi Adeosun who was represented by Permanent Secretary, Alhaji, Mahmoud Isa Dutse said: “The gross statutory revenue of N240.120 billion received for the month was higher than the N238.716 billion received in the previous month by N1.404 billion. Also, the crude oil export volume declined further by 0.34 million barrels and average price of crude oil increased, from $46.54 to $47.08 per barrel during the period.”
Adeosun attributed the decrease in allocation to the Force Majeure declared at Bonny Terminal, Force Majeure at Forcados, Qua Iboe and Brass Terminals. Also, the shut-in and shut-down of pipelines for repairs and maintenance due to leakages and sabotage contributed to low revenue generation for government.
The minister said: “There was a decrease in revenue due to decline in the in volume of federation export sales revenue by about $14.74 million while the Companies Income Tax (CIT) and Value Added Tax (VAT) recorded marginal increases for the month under review.”
Given the breakdown of how the statutory revenue was shared among the three tiers of government for December, Adeosun said the Federal Government got N97.897 billion, while states received N49.655 billion and local government received N38.282 billion. The sum of N13.613, being the 13 per cent derivation revenue was also shared among the oil producing states.
She said the sum of N6.330 billion refunded to the Federation Account by the Nigerian National Petroleum Corporation (NNPC) was also distributed.
The distributed amount included the month’s statutory revenue of N206.448 billion, exchange gain of N38.852 billion and N66.000 billion from excess Petroleum Profit Tax (PPT) account were also proposed for distribution.
The external reserves balance at the end of December, 2016 was $25.84 billion.