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FG, States, LG share N345.095bn for February

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FG, States, LG share N345.095bn for February

The Federal Government on Tuesday shared the sum of N345.095 billion with the States and Local Governments for the month of February.

Assailed by declining oil revenues, the allocation to various constituents of the federation hold little hope as many states are already neck deep in debts with workers’ unrest a dominant feature in the polity.

A breakdown of the figure showed that federal Government received N127.200 billion, States received N64 billion, while Local Governments got N49.740 billion.

A communiqué issued by the Federation Accounts Allocation Committee (FAAC) and signed by the Accountant General of the Federation Ahmed Idris, showed that the Gross Revenue of N270.499 billion received for the month of February was lower than the N290.961 billion received the previous month by N20.462 billion.
According to the communiqué,  oil production increased slightly between December, 2015 and January, 2016 despite explosions at Escravos Terminal, Force Majeure declared at Brass Terminal, Shut-in and Shut-down of pipelines at other Terminals for repairs and maintenance.

The communiqué, which was obtained from the Deputy Director (Press) of the OAGF, Mrs. K.N. Offie, however said “there was also revenue loss of $45.90million as a result of drop in average price of Crude Oil from $39.04 in December, 2015 to $29.02 in January, 2016.

The communiqué added: “Also, a substantial drop in income was recorded from Oil and Gas Royalty, Companies Income Tax and import Duty.
“Consequently, the distributable Statutory Revenue for the month is N270.499billion. The sum of N6.330 billion was refunded by NNPC to FGN. There is exchange gain of N3.485 billion which was included in the amount for distribution. The value added tax VAT realized N64.781 billion was also included for distribution.

“Based on the foregoing, the total revenue distributable for the current month inclusive of VAT is N345. 095 billion.
“ The details of the Statutory revenue distributed for the month of February  is as follows:  Federal Government received N127.200 billion (52.68%); States received N64. 518 billion (26.72%); Local Government Councils received N49.740 billion (20.60%); while the Oil Producing States received N22.780 billion as 13% derivation revenue.
“Furthermore, for the month of February, 2016, the gross revenue available from the Value Added Tax (VAT) was N64.781 billion as against =N=69.719 billion distributed in the preceding month, resulting in a decrease of N4.938 billion.
“The breakdown of the Value Added Tax (VAT) distribution for the month is as follows: Federal Government received N9.329 billion (15%); States secured N31.095 billion (50%) while the Local Government Councils got N21.767 billion (35%).”

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