Federal, states, local govts share N462.4 billion in May

The Federation Account Allocation Committee (FAAC) Thursday shared a total of N462.4 billion for the month of May 2017. The figure shows a reduction in oil revenue.

The reduction in revenue for the month was attributed to a slight drop in the average price of crude oil at the international oil market from $55.38 per barrel to $55.18 as well as a decrease in the total export volume by about 1.023 million barrels.

The Permanent Secretary, Federal Ministry of Finance, Mahmoud Isa-Dutse, disclosed this while presenting details of the revenue shared during the Federation Accounts Allocation Committee, FAAC meeting in Abuja.

He said crude oil production during the month also suffered due to leakages, sabotage, shut-ins and shutdown incidents at the export terminals for maintenance and the Force Majeure declared at the Forcados Terminal in Bayelsa State since February 2016.

Mr. Isa-Dutse noted however that there were significant increases in revenue from companies’ income tax, CIT, and oil royalty, with Customs and Excise duty showing marginal increase.

Details of the revenue contained in the secretariat report presented by the acting Accountant General of the Federation, AGF, M.K. Usman, showed gross distributable statutory revenue of about N317.6 billion, which was higher by N43.45 billion than the N274 billion collected in April.

Mr. Usman said there was a proposed distribution of N64.8 billion among members being the exchange rates differential during the month, while total revenue available for sharing, including value added tax, VAT, was about N462.4 billion.

Further analysis of the FAAC report showed that the federal government received N147.68 billion, or 52.68 per cent; state governments N74.91 billion or 26.72 per cent; and local governments N57.75 billion, or 20.6 per cent.

Mineral revenue, which accounted for a total of N159.97 billion, was lower than N177.7 billion realised last month by N18.25 billion, while non-mineral sector stood at about $157. 6 billion, which was about N86.88 billion higher than N96.4 billion realised in April.

From the revenue available from the Value Added Tax, VAT, the federal government received N11.518 billion or 15 per cent; states received N38.393 billion or 50 per cent while the local government councils received N26.875 billion or 35 per cent.

Source: Premium Times