FAAC Allocation: FG, States, LGs Share N626.8bn

The Federal Government, States and Local Governments shared N626.8 billion for the month of April.

Mr Ahmed Idris, the Accountant-General of the Federation

(AGF), said this on Thursday in Abuja, while briefing newsmen on the outcome of the Federal Account Allocation Committee (FAAC) meeting.

Giving a breakdown of the revenue accrued in March, Idris said

N480.59 billion was received as gross statutory revenue, lower

than N557.94 billion received in March by N77.34 billion.

He said the reduction in revenue was due to a decrease in the

crude oil export sales by 13 per cent when compared to 5.42

million barrels from the previous month.

“The issues that negatively affected production were the Shut-

ins and Shut-downs at various terminals for repairs and

maintenance.

“This resulted in reduced revenue from federation crude oil

exports sales by 33.58 million dollars.

“However, the average crude oil price increased from 63.08

dollars to 65.72 dollars per barrel.

“There was a considerable rise in oil royalty for the month, while

Companies Income Tax (CIT) and Import Duty recorded

marginal increases.

“Value Added Tax (VAT) decreased slightly but there was a

significant drop in income from Petroleum Profit Tax (PPT).’’

He said that N83.7 billion was received from VAT, showing a

decrease of N5.74 billion as against N89.4 billion received in

February.

Mineral revenue was N360.5 billion, indicating a decrease of

N83.7 billion from the previous month, while non-mineral

revenue was N120 billion, with an increase of N7 billion.

For the Excess Crude Account (ECA), Idris said the balance

stood at 1.83 billion dollars from 2.3 billion dollars in the

previous month.

The shared amount comprised the month’s statutory

distributable revenue of N480.5 billion, VAT of N83.7 billion and

Forex Equalisation of N62.52 billion.

Giving a breakdown of the distribution, he said N263.1 billion

was allocated to the Federal Government, N167.5 billion to

states and N126.29 billion was received by the local

governments.

Speaking on the issue of reconciliation of accounts with the

Nigerian National Petroleum Corporation (NNPC), Idris said it

was ongoing.

“There is no public finance system that will be devoid of

reconciliations at any time

“So reconciliation is part of the order and in that particular

instance, reconciliation that has started last month, continued

this month and there is nothing new.

“We could not meet yesterday because we felt certain milestone

has to be reached and on getting to those milestones, we sat

today and have considered the figures for distribution.

“There was this gentleman agreement between FAAC and

NNPC that whatever NNPC generates should be paid into the

federation account and whatever expenses NNPC incurs, they

should write to claim it.’’

He said that as far as the operations of the NNPC was

concerned, vis-a-vis the retirement of FAAC, these were

issues being considered during the state level discussion and

there would be reports when they had been sorted out.

He, however, said that the amount being expected from NNPC

after the reconciliatory process was not confirmed and would

not want to speculate.

“We do not talk on mere speculation or on hearsay, we have to

wait for the amount to come and we pay to the last kobo.

“We know what will be distributed and that is accounting and

that is public finance.

“We do not base our projections on speculations because there

has to be factual data,’’ Idris said.