FAAC Shares N701bn In May

The Federation Account Allocation Committee (FAAC) on Wednesday shelled out N701.022 billion to  the three tiers of government as disbursements for the month of May 2018.

The figure was described as “an improvement from N626.8 billion shared in April” by the Permanent Secretary Federal Ministry of Finance.

While addressing the press at the end of the FAAC meeting in Abuja on Wednesday,  Permanent Secretary, Federal Ministry of Finance, Dr Mahmoud Isa Dutse said the Federal Government got N289.045 billion, States got N181.963 billion, while the Local Government Areas received NN137.327 billion. The 13 per cent mineral revenue for oil producing states stood at N49.756, while the cost of revenue collection and Federal Inland Revenue Service (FIRS) refund N42.932 billion.

Isa Dutse also disclosed that the Excess Crude Account balance now stands at $1.911 billion after N24.5 billion savings was added to it. It would be recalled that the federal government withdrew about $1billion from the account to purchase aircrafts to tackle insurgency in the country.

Also, an additional sum of N11.269 billion was received from NNPC after April FAAC and it was distributed accordingly. “We are having discussion with the NNPC to reconcile figures and will be resolved soon”, he said.

From the breakdown of the Net Statutory revenue; the Federal Government received N276.535 billion representing 52.68%; States received N140.262billion representing 26.72%; Local Government Councils received N108.136billion representing 20.60%; while the Oil Producing States received N49.756billion also representing 13% derivation revenue.

Furthermore, from the Revenue available from the Value Added Tax (VAT), Federal Government received N12.510 representing 15%; States received N41.701billion representing 50% while the Local Government Councils received N29.190 billion also representing 35%.

The Technical sub -Committee of Federation Accounts Allocation Committee (FAAC) at the end of the meeting indicated that the Gross statutory revenue received for the month was higher than the N480.599billion received in the previous month by N132.458 billion. Crude oil export sales volume increased by 64% when compared with the 7.72million barrels from the previous month, resulting in increased revenue from Federation Crude Oil Export Sales by $226.90million. Also, the average crude oil price increased from $65.72 to $66.78 per barrel.

In his remarks, Chairman, Commissioners of Finance Forum, Mahmoud Yunusa said the states were happy that more money was shared in May, they were “anxious to see the monthly allocation hit the N1 trillion target.We’ve passed the N600 billion mark but our target is N1 trillion and we’re working hard on boosting non oil revenue.”

He also said states were pushing for a review of the revenue sharing formula. “The Revenue sharing formula is being looked into to make it justifiable and equitable. States and local governments should have more revenues to feel the impact of the government.