FAAC shares N715bn for July
..As New Revenue Template underway for NNPC, Others
The Federation Accounts Allocation Committee (FAAC) on Thursday shared a total sum N715 billion among the three tiers of government for the month of July 2018 and also agreed a new revenue reporting template specifically for the Nigerian National Petroleum Corporation (NNPC) and other members of the revenue sharing committee.
Finance Minister, Kemi Adeosun, while speaking to Finance Journalists at the end of the FAAC meeting in Abuja, said she was hopeful the committee constituted to work on the new template would come up with a draft before the next FAAC meeting for review.
“We are working with the Department of Petroleum Resources (DPR), the office of Accountant General of the Federation (OAGF), NNPC and all the stakeholders to develop a new template,” she said.
The development is coming on the heels of crises arising from frequent inconsistencies in the monthly revenue returns by the NNPC, which resulted in several stalemated FAAC meetings in the past before President Muhammadu Buhari intervened and subsequently ordered a review of the existing template.
According to the minister, the review unearthed several deficiencies in the reporting template used by the NNPC, as its parameters had not been updated for more than ten years.
The Minister also announced the setting up of another committee under the chairmanship of Commissioner for Finance for Delta State to come up with rules for a rule-based credits to the excess crude oil revenue account and also to report back in the next meeting.
Meanwhile, the three tiers of government, and the Federal Capital Territory (FCT), Abuja, shared about N714.8 billion for July.
Details presented by the acting Accountant General of the Federation, M.K. Usman, showed gross statutory revenue at about N597.98 billion.
The report showed that the revenue received for the month was lower than the N694.67 billion collected in June by about N96.7 billion.
The report further indicates that crude oil export sales volume of about 3.74 million barrels resulted in increased revenue from federation crude oil export by about 0.17 million barrels compared to about 3.57 million barrels exported in June.
The report also stated that production was negatively impacted as a result of shut-ins and facility shut-downs at various terminals for routine maintenance of aging facilities and repairs.
Besides, the report showed revenue from value added tax (VAT), import duty, company income tax (CIT) and oil royalty decreased, while petroleum profit tax recorded an increase.
The revenue distribution figures pushed out by the minister showed that the federal government got about N269.8 billion, in addition to about N11.9 billion from VAT, while the state governments received N1369 billion and N38.3 billion from VAT.
The local government councils were allocated N105.5 billion, apart from N26.8 billion VAT, while the oil producing states collected N44.96 billion as 13 per cent derivation revenue for the month.
The sum of N25billion was transferred to the excess crude oil revenue account, showing a new balance of $2.332 billion, while excess petroleum profit tax (PPT) account currently holds about $133 million.