The Federation Account Allocation Committee (FAAC) shared the sum of N493.8 billion among the three tiers of government in August, this year being the statutory allocation for the month of July.
The distributable monthly allocation slightly decreased below N559 billion shared in the month of July. The gross revenue generation for the month under review decreased by N65.2 billion compared to July allocation.
Addressing journalist 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 the Permanent Secretary in the Ministry, Mahmoud Isa-Dutse, said: “The gross statutory revenue of N287.82 billion received for the month under review was lower compared to N538.79 billion received in June by N250.97 billion.”
Adeosun attributed the decrease in allocation to the decrease in crude oil volume by 2.8 million barrels in April, 2016 partly because of a subsisting Force Majeure declared at Forcados Terminal and the Shut-in and Shut-down of pipelines at other terminals due to the activities of vandals and for maintenance that impacted negatively on production.
The minister said: “There was a decrease of $102.17 million in Federation Export Revenue despite the increase in average price of crude oil from $38.64 in March to $42.21 per barrel in April, 2016. Import duty recorded a marginal increase but the performances of Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) decline drastically as Joint Venture Companies had filed their actual annual returns and paid in June while Blue Chip Companies made their tax payments before the June deadline.
Given the breakdown of how the statutory revenue was shared among the three tiers of government for July, Adeosun said the Federal Government got N129.212 billion, while states received N65.538 billion and local government received N50.527 billion. Also, the sum of N12.87 billion, being the 13% derivation revenue was shared among the oil producing states.
The chairman of FAAC, who put the revenue for Value Added Tax (VAT) at N66.987 billion for July noted that the Federal Government collected N9.646 billion; states N32.154 billion; and the local governments, N22.508 billion, adding that there was an exchange gain of N70, 037 billion with the distribution of N50.165 billion recovered from the Excess Petroleum Profit Tax(PPT) and N1.373 billion as excess bank charges recovered from 2008 to 2012.
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 the gross statutory revenue of N275.102 billion include the solid minerals revenue and the net allocation of N258.151 billion to give distributable revenue of N335.759 billion.
The shared amount comprised the Month’s Statutory revenue of N258.151 billion, Value Added Tax of N66.987 billion, Exchange gain of N70.037 billion, Exchange Gain differential claim of N36.494 billion for the month of May 2016 , There was also a N6.330 billion refund to the Federal Government by Nigerian National Petroleum Corporation (NNPC).
