July FAAC Meeting: FG, Others Share N821.863 Billion

0
344

ABUJA – (OAGF Report) – The Federation Accounts and Allocation Committee lately in its meeting shared the total sum of N821.863 billion as revenue for the month of June , 2018 among the Federal, States and Local Government Areas.

In a communiqué issued by the Sub – Technical Committee of the Federation Accounts Allocation Committee (FAAC) in the Office of the Accountant-General of the Federation, the gross statutory earning received for the month was N694.672 billion which is higher than N575.475 billion received in the previous month by N119.197billion. The report stated that the shared amount comprised the month’s statutory distributable revenue of N694.672 billion, the Value Added Tax of N85.342billion and the excess gain from the Forex Equalization Account of N41.848, making up the sum of N821.863 billion.

According to the Communique on the Net Statutory Allocation, the Federal Government received N283.540 billion representing (52.68%); States received N143.815 billion (26.72%); Local Government Councils received N110.876 billion representing (20.60%); whilst the Oil Producing States received N37.408 billion as 13% derivation revenue. It continued that the FIRS, Nigeria Custom Service and DPR received the sum of N22.446 billion as their cost of collection and FIRS refund and there was also N100 Billion transferred to the Excess Crude Account.

Furthermore, from the revenue available from the Net Value Added Tax (VAT), the Federal Government received N12.289 billion (15%); states received N40.965 billion (50%) while the Local Government Councils received N28.675 billion (35%).

The Communique further explained that there was an increase in the average price of crude oil from $65.98 to $667.93 per barrel and an increase in export sales of 1.42 million barrels which resulted in increased revenue from Export sales of $101.64 billion. It also indicated that other issues which negatively affected crude oil production were shut-ins and shut-downs of pipelines for maintenance and repairs.

“Significant increases were recorded in Companies Income Tax (CIT ) and Oil Royalty while the revenues from Import Duty and Value Added Tax (VAT) decreased considerably in the month under review. The Minister of Finance, Kemi Adeosun briefed the Committee on the update on the last deadlocked FAAC Meetings of the previous month, explaining that the President has intervened on the matter,” the Communique affirmed.

It later inferred from the Finance Minister’s statement that President Muhammadu Buhari has directed that a new reporting template for FAAC be developed by the Joint Committee of the Federal Ministry of Finance, the Office of the Accountant-General of the Federation, the Nigeria National Petroleum Corporation and representative of the States, to bring about heightened transparency and accountability in the reporting of NNPC revenue.

Kemi Adeosun noted that the current reporting template has not been reviewed over a long period of time, describing the proposed template as a landmark and far-reaching reform.