…As FAAC revenue down by N35.3bn

The federation accounts allocation committee(FAAC) shared the sum of N420 billion among the Federal, State‎s and Local Governments for the month of September 2016.

It is however short by N35.3bn compared with the amount in August this year.

Giving the breakdown, FAAC chairman who also doubles as ‎the Permanent Secretary, Ministry of Finance, Alh. Mahmoud Isa Dutse who stood for the Minister of Finance, Mrs Kemi Adeosun said, the gross statutory revenue of N279, 746 billion received for the month was lower than the N315. 045 billion received in the previous month by N35. 299 billion.

He said, Crude Oil export volume decreased by 1.15 million barrels in June, ‎2016. The decrease, according to him was caused by revenue decline of $45.52 million in Federation export sales despite the increase in average price of Crude Oil from $46.06 per barrel in May, 2016 to $48.43 per barrel in June, 2016.

Force Majeure ‎was declared at Bonny Terminal and there was a subsisting Force Majeure at Forcados Terminal. Shut-in and shut-down of Pipelines for repairs and Maintenance also contributed ‎to the drop in revenue.

Also, there were decreases in volume of dutiable imports, receipts from Joint Venture Cash Call, Foreign Companies Income Tax (CIT) ‎and Value Added Tax (VAT).

The distributable statory Revenue for the month is N250.947 billion. The sum of N6.330 billion ‎was refunded by NNPC to Federal Government.

There is a proposed distribution of N63.386 billion from Ex‎cess PPT Account. Also, exchange gain of N41. 402 billion is proposed for distribution.

Therefore, the total revenue distributable for the current month (including Vat) is N420.000 billion.

The Permanent Secretary who said that the recent International Monetary Fund (IMF) rating, placing Nigeria’s economy above that of South Africa, has shown that Nigeria is a major investment destination in Africa, said, ‎Excess Crude Account stood at $2.454 billion.

Asked why the Excess Crude Account which was announced to stand at $‎2.9 billion in the last FAAC meeting reduced to $2.454 billion, the Accountant General of the Federation, Ahmed Idris argued that the amount has not change, but disclosed that Petroleum Profit Tax (PPT) which was included in the $2.9 billion was now detached from the Excess Crude Account for the sake of clarity.