The Federation Accounts Allocation Committee (FAAC) distributed the sum of N400 billion among the three tiers of government in January 2017, being the statutory allocations for the month of December 2016.
The distributable monthly allocation increased by 13.12 billion compared to N386.87 billion shared in the previous month. The gross statutory revenue for the month under review was higher by N8.59 billion compared to the previous 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 Permanent Secretary, Alhaji, Mahmoud Isa Dutse said: “The gross statutory revenue of N248.71 billion received for the month was higher than the N240.1bn received in the previous month by N8.59 billion. Also, the balance of the excess crude account stands at $2.45 billion for the same period.”
Adeosun attributed the negative revenue generated to the force majeure at Forcados, Qua Iboe and Brass terminals. Also, there was revenue decline of $65.4m in federation export sales due to a drop in crude oil export volume of 1.39 million barrels.
The minister said: “The sum of N224.88 billion was received as statutory allocation; N79.27 billion for Value Added Tax (VAT), exchange gain of N52.84bn, and excess Petroleum Profit Tax N42.99 billion amounting to the marginal gain for the month under review.”
Given the breakdown of how the statutory revenue was shared among the three tiers of government, Adeosun said after deducting cost of collections to the revenue generating agencies, the federal government got N105.76 billion, states received N53.64 billion and local government received N41.35 billion. Also, federal government received N11.4 billion, states got N38 billion and local government received N26.63 billion from VAT.
The sum of N15.5 billion, being the 13 per cent derivation revenue was also shared among the oil producing states.
She said the sum of N6.330 billion refunded to the Federation Account by the Nigerian National Petroleum Corporation (NNPC) was also distributed.
The distributed amount included the month’s statutory revenue of N206.448 billion, exchange gain of N38.852 billion and N66.000 billion from excess Petroleum Profit Tax (PPT) account were also proposed for distribution.