Economy

FAAC Shares N429bn February Allocation to Tiers of Government

March 21, 2017

A total of N429.127 billion has been distributed as Federal Allocation for the month of February, 2017 to Federal Government, State Governments and Local Government Councils.

The communiqué issued by the Technical sub-Committee of Federation Accounts Allocation Committee (FAAC) at the end of the meeting held today in Abuja, indicated that the gross statutory revenue received for the month is N290.163 billion, which is lower than the N324.990 billion received in the previous month.

The shared amount comprised the Month’s Statutory distributable revenue of N258.692 billion, Value Added Tax of N69.207 billion, Exchange gain of N40.329 billion and Excess PPT Account of N60.899 billion.

There was also a N6.330 billion refund to the Federal Government by Nigerian National Petroleum Corporation (NNPC).

Accordingly, from Net Statutory revenue, Federal Government received N117.581 billion representing (52.68%); States received N59.639 billion (26.72%); Local Government Councils received N45.979 billion representing (20.60%); while the Oil Producing States received N23.191 billion as 13% derivation revenue.

Furthermore, from the Revenue available from the Value Added Tax (VAT), Federal Government received N9.966 (15%); States received N33.220 billion (50%) while the Local Government Councils received N23.254 (35%).

The Communique further revealed that there was a revenue increase of $4.06 million in Federation export sales due to a rise in the Crude oil export volume by 0.30 million barrels.

There was however, a decrease in the average price of Crude oil from $49.57 to $44.74 per barrel during the period under review. Production diminished during the period due largely to leakages in the pipelines arising from sabotage. Also the force Majeure declared at Forcados and Brass Terminals lingered.

Significant decreases in revenue were noted from PPT, CIT Import and export duties and oil royalty. Consequently the total revenue distributable for February including VAT is N429.127 billion.

Kenechukwu Offie (Mrs)
Director Information, OAGF
March 21, 2017