The Federation Accounts Allocation Committee (FAAC) distributed the sum of N420 billion among the three tiers of government in October this year, being the statutory allocations for the month of September.

The distributable monthly allocation marginally decreased below N510.27 billion shared in the month of September. The gross revenue generation for the month under review fell by N35.3 billion compared to September 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 N279. 75 billion received for the month under review was lower compared to 315.045 billion received in September by N35.299 billion.”

Adeosun attributed the decrease in allocation below N500 billion to the Force Majeure ‎declared at Bonny Terminal and the subsisting Force Majeure at Forcados Terminal. Also, the Shut-in and shut-down of Pipelines for repairs and Maintenance also contributed ‎to the fall in revenue.

The minister said: “There was a decrease in revenue as a result of the reduction in the volume of crude oil export by 1.15 million barrel in June, 2016. It caused revenue decline by $45.52 million in federation export sales, notwithstanding the rise in average crude oil prices from $46.06 per barrel in May to $48.43 per barrel in June. There was also decline in the volume of dutiable imports, receipts from Joint Venture Cash Call, Foreign Companies Income Tax (CIT) ‎and Value Added Tax (VAT).”

Given the breakdown of how the statutory revenue was shared among the three tiers of government for September, Adeosun said the Federal Government got N120.4 billion, while states received N61 billion and local government received N47 billion. The sum of 13.7 billion, 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 N64.2 billion for September compared to N75.962 billion distributed in August.

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 N250.945 billion, exchange gain of N41.402 billion and N63.386 billion from excess Petroleum Profit Tax (PPT) account were also proposed for distribution.

The Excess Crude Account for the month under review stands at $2.454 billion.