The Federal Government, State Governments and Local Government Councils have shared a total of N559.032 billion as Federal allocation for the month of June, 2016.
A communiqué issued by the Federation Accounts Allocation Committee (FAAC) and signed by the Accountant General of the Federation Ahmed Idris indicated that the Gross Revenue of N538.788 billion received for the month of June is higher than the =N=237.466 billion received in the previous month by =N=301.322 billion. Crude Oil export volume increased by 1.9 million barrels in March 2016 despite the subsisting Force Majeure declared at Forcados Terminal owing to shut-in, shut-down of pipelines at other Terminals due to leakages, vandalism and turn around maintenance.
The average price of Crude Oil increased from $32.26 in February to $38.64 in March, 2016 resulting in $92.99 million increase in Federation Export Revenue. There was also an outstanding increase in Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) with complementary increases in Import Duty and Royalties. The new flexible exchange rate regime helped to boost revenue for the month.
The distributable Statutory Revenue for the month is N538.788 billion. The sum of N6.330 billion was refunded by NNPC to FGN. There is distribution of N 9.923 billion Solid Mineral Revenue generated from 2007 to 2014. Also, there is exchange gain of N 79.272 billion which is proposed for distribution. The total revenue distributable for the current month (inclusive of VAT) is N 559.032 billion.
The details of the Statutory revenue distributed for the month of June is as follows: Federal Government received N199.754 billion (52.68%); States received N101.318 billion (26.72%); Local Government Councils received billion (20.60%); while the Oil Producing States received N17.124 billion as 13% derivation revenue.
Furthermore, for the month of June, 2016, the gross revenue available from the Value Added Tax (VAT) was =N=67.401 billion as against =N=65.116 billion distributed in the preceding month, resulting in an increase of N 2.284 billion.
Kenechukwu N OFFIE
DD PRESS, OAGF
21st June, 2016.