The Federation Account Allocation Committee (FAAC) shared the sum of N510.27 billion among the three tiers of government in September this year, being the statutory allocations for the month of August.
The distributable monthly allocation slightly increased above the N493.8 billion shared in the month of August. The gross revenue generation for the month under review increased by N16.47 billion compared to August allocation. The government for the second time in 2016 shared allocation above N500 billion.
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 said: “The gross statutory revenue of N315.04 billion received for the month under review was higher compared to N287.81 billion received in August by N27.22 billion.”
Adeosun attributed the increase in allocation above N500 billion benchmarks for the second time in 2016 to increase in crude oil export volume by 2.2 million barrels in May, 2016 notwithstanding the brief Force Majeure declared at Qua Iboe, Bonny Terminals and Forcados Terminals.
The minister said: “There was an increase of $109.40 million in Federation Export Sales due to the increase in average price of crude oil from $42.21 in April to $46.06 per barrel in May, 2016. There was also a rise in the volume of dutiable imports that contributed significantly to the increases recorded by Import Duty and value added tax (VAT) with increase in PPT and exchange gain of N84.26billion.”
Given the breakdown of how the statutory revenue was shared among the three tiers of government for August, Adeosun said the Federal Government received N149.31 billion, while states got N75.73 billion and local government received N58.38 billion. In addition, the sum of N20.29 billion, being the 13% derivation revenue was shared among the oil producing states.
The chairman of FAAC, put the revenue for Value Added Tax (VAT) at N75.962 billion for August compared to N66.987 billion distributed in July, resulting to an increase of N8.975 billion. She note that the Federal Government collected N10.93 billion; states N36.46 billion and the local government, N25.52 billion, making the total revenue distributable including VAT to be N510.270 billion.
She said the sum of N6.330 billion refunded to the Federation Account by the Nigerian National Petroleum Corporation (NNPC) was also shared.
The distributed amount included the month’s statutory revenue of N315.045 billion, VAT of N75.962 billion and Exchange Gain of N84.263 billion formed part of the amount distributed.
