FAAC disburses N689.71bn to FG, States and LGs as September revenue

The Federal Account Allocation Committee (FAAC) has disbursed a total of N689.71 billion to the federal, state and local governments as revenue allocation for the month of September.

The amount, which was distributed in the monthly FAAC meeting in Abuja on Thursday, is N51.13 billion lower than N741.84 shared among the three tiers of government in August despite increase in oil export sales.

Finance Minister Zainab Ahmed, who presided the meeting, stressed the need for the governments to save for the rainy day.

“In view of the situation of the economy at the moment it is important to restate the need for governments at all levels to maintain transparency and instil a saving culture for the rainy day. We have to save, not only saving for today, but for tomorrow,” the minister said.

In a communique by FAAC Technical Sub-Committee at the end of its meeting held on Wednesday and signed by the Accountant-General of the Federation, Ahmed Idris, gross statutory revenue for the month was N569.281 billion, indicating N57.858 billion when compared to N627.139 billion shared in August.

Details of the disbursement from the document showed that crude oil export sales increased by 0.17 million barrels, resulting in increased revenue of $8.48 million to the federation.

However, the average unit price dropped from $77.10 per barrel to $75.69 per barrel in the review month.

The document noted that shutdown of pipelines in the Niger Delta during the month resulted in shut in of production at various pipelines.

The details further revealed revenue from Royalties increased significantly while Value Added Tax (VAT), Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) decreased significantly.

Read also: Nigerian govt proposes N8.73trn for 2019 budget

A breakdown of the figures for the month of September showed that the gross revenue available from the VAT was N79.154 billion as against N114.542 billion distributed in the preceding month, resulting in a decrease of N35.388 billion.

According to the document, the federal government received about N277.197 billion, the state and local governments got about N172.810 billion and 130.534 billion respectively, while the nine oil producing states received about N52.596 billion as 13 percent derivation.

The Federal Inland Revenue Service (FIRS) got about N15.572 billion as cost of collection/transfer.

Meanwhile, the report of the committee on the Excess Crude Account (ECA) was stepped down and withdrawn to enable the committee to rework and represent it at the next meeting.

 

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