FAAC Disburses N788.139bn For October Allocation

At the end of the November, 2018 Federation Account Allocation Committee (FAAC) meeting, in Kaduna, a total of N788.139 was shared among the benefiting entities for October 2018 Allocation.

The N788.139 shared in Kaduna surpassed the N698.710 billion shared the previous month.

According to the statement issued and signed by the Special Adviser to the Hon. Minister of Finance, Mr. Paul Ella Abechi, the breakdown of the figures released by the Accountant General of the Federation (AGF) shows that beneficiaries of the statutory allocation for the October disbursements shared N682.161 billion with the Federal Government keeping, N284.396 billion; state governments, N144.249; the 774 local governments councils received N111.210 billion.

N58.092 was allocated to the oil mineral producing states under the 13% derivation principles while, N84.214 billion was disbursed under the Cost of Collection/Transfers/FIRS refund.

With regards to the Value Added Tax (VAT) distributions for the month, a total of N105.172 billion was disbursed with the federal government receiving N15.145 billion; state governments and the Federal Capital Territory (FCT) keeping N50.483 billion and local government councils receiving N35.338 billion. N4.207 billion was allocated to the Cost of Collection/Transfers/FIRS refund for VAT.

N806 million was shared as proceeds of Exchange Gain with the federal government receiving N372 million; state governments, N188 million; local government councils N145 million and beneficiaries of the 13% of mineral revenue derivation receiving N101 million.

Account General of the Federation (AGF) Mr. Ahmed Idris in his comment said, the gross statutory revenue of N682.161 billion received for the month was higher than the N569.281 billion received in the previous month by N112.880 billion.

He attributed this increase to crude oil export sales which he said increased by 0.82 million barrels resulting in increased revenue to the Federation of $54.19 million. However, the average unit price dropped further from $75.69 to $73.92.

Also, “the Shut-In and Shut-down of pipelines at various terminals persisted due to leaks and maintenance” the AGF said.

“Revenues from Oil and Gas Royalties, Petroleum Profit Tax (PPT) and Value Added Tax increased significantly while Companies Income Rax (CIT), import and excise duties increased only marginally” Idris Ahmed explained.