After months of dwindling revenue from the Federation Account, states and local government areas in the country have some good reason to cheer, as their monthly allocation from the Federation Account witnessed a significant improvement in on Thursday.
This is as the total amount available for share between federal, states and local governments jumped from N305.128bn last month to N559bn in July, representing a difference of N263.904 jump in total shareable revenue.
The N559bn is the total amount accruable to the Federation account and receipts from Value Added Tax, VAT, in June.
According to the Minister of Finance, Mrs Kemi Adeosun, who disclosed this at the end of the monthly meeting of the Federation Account Allocation Committee, FAAC, in Abuja on Thursday, she said the upsurge in the shareable revenue the three tiers of government is a source of joy to all concerned.
The minister also disclosed that the improvement in revenue was due to more tax receipts by the Federal Inland Revenue Service and duties by the Nigeria Customs Service while also stating that the Excess Crude Account had jumped to $3.09 billion.
Continuing, Adeosun said though the economy had been declared to be technically in recession, hopes are high for a rebound soon, adding that the high revenue shows that the reforms of the President Muhammadu Buhari administration were working and would return the nation to the path of growth.
In the latest sharing, the Federal Government got a total of N209.460 billion; states N133.671 billion while local governments received N100.759 billion.
Oil producing states got N18bn as 13% derivation from oil revenue.
By Timothy Enietan-Matthews
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