FAAC Shares N655.17bn As Dec 2017 Allocation To FG, States, LGs
BY COBHAM NSA, ABUJA – The three tiers of government on Tuesday received N655.17 billion from Federation Account Allocation Committee (FAAC) as accrued revenue for the month of December 2017
The revenue breakdown of the statutory allocations showed that the Federal Government got N252.5 billion; while the States and local governments received N150.1 billion and N98.7 billion respectively.
This is even as the balance in the Excess Crude Account still remained $2.31 billion.
Minister of Finance, Kemi Adeosun, who briefed newsmen in Abuja on the monthly allocation, said the funds were shared under four distributable sub-heads.
According to her, the total statutory revenue for the month stood at N540.44 billion comprising N104.3 billion from Nigerian National Petroleum Corporation (NNPC); N77.61 billion contributed by Department of Petroleum Resources (DPR); with the Federal Inland Revenue Service (FIRS) collection from the oil sector and non-oil sector reading N88.37 billion and N116.9 billion respectively
Mrs Adeosun further stated thus; “We also generated N51.98 billion from the Nigerian Customs Service”, adding that; “There was also a refund of some excess bank charges to the tune of N1.93 billion.”
The Minister also explained that “There was a deduction of seven per cent cost of collection to the customs, four per cent to the FIRS and another four per cent to DPR.
“There was also a provision for FIRS tax refund of N2 billion and another refund by Customs to the tune of N8 billion.”
She said with all the deductions adequately captured by FAAC, the distributable revenue for the month came to N655.17 billion, including Value Added Tax (VAT) of N83.96 billion and N30.76 billion from the Forex Equalisation Account.
The Minister however expressed concern that persistent damage to oil pipelines in the Niger-Delta region and the declaration of Force Majeure at Bonny Terminal have been impacting negatively on the nation’s oil revenue.
“The decrease in crude oil exports sales by 0.59 million barrels resulted in decreased revenue from export sales of 11.65 million dollars”, Mrs Adeosun said, adding that; “However, the average price of crude oil increased from $52.07 to $56.83 per barrel during the period under review.”
She also stated that though there were marginal increases in revenues from Petroleum Profit Tax (PPT) and VAT, Import Duty and Oil Royalty witnessed shortfalls in collections.
In addition to the distributed income, the Minister said N47.7 billion, representing 13 per cent of the oil revenue generated in the month of December and shared in January, was also shared among the oil producing states.
