The Federation Accounts Allocation Committee (FAAC) distributed the sum of N420 billion among the three tiers of government in November this year, being the statutory allocations for the month of October.
The distributable monthly allocation remained constant with the N420 billion shared in the month of October. The gross generation for the month under review fall by N41.030 billion compare to October 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 who was represented by Alhaji, Mahmoud Isa Dutse said: “The gross statutory revenue of N238.716 billion received for the month was lower than the N279.746 billion received in the previous month by N41.030 billion. Also, the crude oil export volume declined and the average price of crude oil dropped, resulting in revenue loss of about $51million in Federation export Sales.”
Adeosun attributed the decrease in allocation to the Force Majeure declared at Qua Iboe Terminal and the NGL lifting programmes with the Force Majeure at Forcados Terminal still that still persisted. In addition, the shut-in and shut-down of pipelines for repairs and maintenance due to attacks on supply pipelines also contributed to the fall in revenue.
The minister said: “There was a decrease in revenue due to decline in the in volume of dutiable imports, and Companies Income Tax (CIT) and Value Added Tax (VAT) while PPT while Oil Royalty recorded marginal increases.”
Given the breakdown of how the statutory revenue was shared among the three tiers of government for September, Adeosun said the Federal Government got N96.674 billion, while states received N49.035 billion and local government received N37.804 billion. The sum of N13.548, being the 13 per cent derivation revenue was also distributed among the oil producing states.
The chairman of FAAC, put the revenue for Value Added Tax (VAT) at NN66.836 billion for October compared to N64.2 billion distributed in September.
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 N203.952 billion, exchange gain of N37.319 billion and N109.108 billion from excess Petroleum Profit Tax (PPT) account were also proposed for distribution.
