The meeting of the Federation Account Allocation Committee (FAAC) in June 2015, a total sum of N472bn was disbursed to the tiers of government. While the sum of N441bn was distributed as gross allocation covering Statutory and VAT disbursements, the sum of N31bn was however shared being Exchange Gain Difference for the month.
Meanwhile, FAAC members expressed worries over nation’s oil revenue, saying the Nigerian National Petroleum Corporation (NNPC) have kept mute and delaying the refund of $1.48 billion directed by a presidential forensic investigation that found it culpable of an inconsistency.
Permanent Secretary, Federal Ministry of Finance, Mrs. Anastasia Daniel-Nwokobia, said at the end of the FAAC meeting for May held in June in Abuja, that no explanation was given by the corporation for its inability to remit the money as recommended.
Daniel-Nwokobia hinted that ”the issue of the refund of the $1.48 billion recommended in the forensic audit report was not discussed and so no refund was made, apart from the N6.33 billion refunded as part of the N450 billion oil revenue it owed the Federal Government since 2011”.
Daniel-Nwokobia, who presided over the meeting explained that the FAAC was shifted from the earlier schedule of June 15 and 16, on account that government at all levels have been busy with power transition following the May 29 handover to the new administration hence the need to wait. “Most of the states are yet to appoint their commissioners and reconstitute their executive councils. The FAAC secretariat had to liaise with the states to know who would be representing them at the meeting.
Meanwhile, a communiqué issued by the Committee after the meeting showed that the gross revenue received for the month under review was N324.061billion as the balance of the excess crude account (ECA) stood at $2.078 bn. The amount, when compared with the N282.062billion received in April, 2015 showed an increase of N41.999billion.
According to the communiqué, delays in issuance of third quarter 2015 Export Permit cum several shutdowns and shut-ins of the trunk and pipelines at oil terminals have led to a drop of about 160,000 bpd in April, 2015.
An increase in the average price of crude oil from $56.04m in March, 2015 to $59.88m in April was contributed to improvement in oil revenue.
The total revenue distributable (including VAT) is N418.452 billion as non–oil revenues are expected to perform better in the later part of 2015 due to some mechanisms put in place by Federal Inland Revenue Service (FIRS). Non–mineral revenue was N101.592 billion in April and decreased to N98.894billion in May accounting for a loss of N2.698 billion.
The distributed amount comprised the statutory revenue of N324.061billion and N6.330 billion refunded to the Federal Government by Nigerian National Petroleum Corporation (NNPC).
Consequently, from total distributable revenue (including VAT) of N418.452billion, Federal government received N150. 805 billion (52.68%); States received N76.998 billion (26.72%); Local Government Councils received N59.362 billion (20.60%); while the oil producing states shared N29.071billion as 13% derivation revenue.