FAAC Distributes N370.8bn for November 2015

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Yusuf An-Nuphawi
The Federation Account Allocation Committee shared the sum of N369.882bn (three hundred and sixty-nine billion, eight hundred and eighty-two million naira) among the three tiers of government in December, being the statutory allocation for the month of November 2015.
 
The distributable monthly revenue allocation marginally decreased again after it rose to N473.83 billion in October, the highest statutory allocation in three months, as the allocation for the month under review represents a decrease of N103.948bn (one hundred and three billion, nine hundred and forty-eight million naira).
 
Briefing newsmen shortly after the monthly FAAC meeting held at Federal Ministry of Finance in Abuja, the Minister of Finance, Mrs. Kemi Adeosun, said the gross statutory revenue of N400.310 billion received in November was higher than the N321.996 billion received in the previous month by N78.314 billion.
 
The Minister, who is also the FAAC Chairman, blamed the intermittent shutdown and shut-in of production for repairs and maintenance at different oil terminals during the month as factor that continued to impact crude oil and gas revenue negatively.
 
Highlighting how the statutory revenue was shared to the various tiers of the government for November, she said the federal government got N139.105 billion, states N70.757 billion, and local governments N54.551 billion.
 
The Chairman, who put revenue from Value Added Tax (VAT) at N58.734bn, hinted that there was a revenue loss of $1.3 million as a result of the drop in the average price of crude from $47.315 in August to $46.96 in September 2015.
 
The minister informed the public that non-oil revenue recorded a significant improvement in the month, rising by N104.212 billion more than the previous month’s non-oil receipts.
 
According to her, with distributable statutory revenue for the month standing at N400.310 billion, the sum of N6.330 billion was refunded to the federal government by the Nigerian National Petroleum Corporation (NNPC). She added that there was an exchange rate gain of N6.995 billion while $150 million US dollars, being part of NLNG dividend, was also distributed to the three tires of government.
 
Fielding question from newsmen as to what the economic response of the administration would be to dwindling oil revenue, the minister said non-oil revenue was the plank upon which the economy would be anchored in 2016 and beyond.
 
“Non-oil revenue is now making a difference compared to oil revenue. It’s a very positive sign. We will make sure people are paying taxes. Non-oil revenue is not volatile like oil revenue and more sustainable. It is our policy direction,” Adeosun said.
 
The Minister, who assured the civil servants that the federal government was determined to make the welfare of workers a priority, disclosed that the Excess Crude Account (ECA) remained unchanged at $2.258 billion and disclosed.
 
Analysis of the revenue document in possession of the Economic Confidential showed that the oil producing state of Akwa Ibom received N11.947 billion. While Lagos state got N11.291 billion, Kano state received N8.220 billion. Delta and Rivers states received N8. 941 billion and N8.353 billion respectively. Bayelsa state got N5.052 billion.
 
The table also showed that Gombe State received N2.522 billion as Ekiti and Osun got N2.677 billion and N2.155 billion respectively. While Cross River State got N2.760 billion, Eboyi received N3.202 billion among the lower earners of the statutory monthly allocation.
Revenue collection agencies made up the table with Federal Inland Revenue Service (FIRS) received N4.471 billion. While Nigerian Custom Service received N3.416 billion, the Department of Petroleum Resources got N1, 589 billion.
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