The Federation Account Allocation Committee (FAAC) shared a total of N559 billion among the three tiers of government in July, this year being the statutory allocation for the month of June.
The distributable monthly allocation marginally increased above N500 billion for the first time in 2016, indicating second month of rising allocation. The gross revenue generation for the month under review increased by N301 billion compare to June 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 said: “The gross statutory revenue of N538.78 billion was received in the month under review which was higher compared to N237.46 billion received in May by N301.32bn. The average price of crude oil increased from $32.26 in February to $38.64 in March, resulting in $92.99 million increase in federation export revenue.”
Adeosun attributed the increase in allocation to efficiency in collection by the revenue generating agencies. She added that there was an increase in non-oil tax collection by the Federal Inland Revenue Service, which recorded a rise of N165 billion in tax collections and the Nigeria Customs Service, upturned its revenue by N12.6 billion.
The minister said: “The major cause of the increase is the improvement of non-oil revenue from the FIRS. The agency improved its performance between last month and this month by N165bn which accounted for the change in revenue, with an improvement of N12.6bn by the Nigeria Customs Service, and the exchange rate gain of N79.2bn.”
Giving the breakdown of how the statutory revenue was shared among the three tiers of government for June, Adeosun said the Federal Government received N199.75 billion, while the states got N101.32 billion and the local governments received N78.11 billion.
The chairman of FAAC, who put the revenue for Value Added Tax (VAT) at N67.4 billion for June, where the Federal Government collected N9.7bn; states, N32.35bn; and local governments, N22.67bn, said “There was an exchange gain of N79.27 billion which was proposed for distribution, making the total amount distributable N559.03 billion for the month of June with an outstanding increase from corporate taxes while the exchange rate regime helped to boost the revenue.”
She said the sum of N6.330 billion refunded to the Federation Account by the Nigerian National Petroleum Corporation (NNPC) was also shared. She added that out of the N412.3 shared under statutory allocation, after deducting the costs of collection to the Customs and the FIRS, the sum of N17.12 billion, showing 13 per cent derivation revenue, was shared among oil producing states.
In the month under review, the Excess Crude Account balance increased to $3.93 billion for the month, indicating an increase of 1.67 billion from the previous month with $2.26 billion.