BY EDMOND ODOK, ABUJA – Smarting from their huge campaign expenditures in the just-concluded 2019 general elections, relief has come the way of State Governors with Federation Accounts Allocation Committee (FAAC) distributing a total of N619.857 billion as February 2019 monthly revenue to the Federal, States and Local Government Councils in the country.
An insider hinted that immediately after the March 9 gubernatorial and State Houses of Assembly polls, “the pressure from governors for FAAC ‘to do the needful’ became so intensed as everyone was seriously looking for funds to cushion the effect of huge withdrawals and spendings on the polls by the respective States.”
The source confirmed that this week’s signals from FAAC on revenue distributions to all three tiers of government indeed brought great excitement to all the stakeholders.
Our source described as ‘life-saving’ the communiqué by FAAC’s Technical Sub -Committee at the end of its February meeting, saying this is despite the gross statutory revenue of N478.434 billion being about N26.812 billion lower than the N505.246 billion recorded in the month of January, 2109
From figures released to the media, statutory distributable revenue for the month is N478.434 billion, even as the total distributable income for the month that includes Value Added Tax (VAT), Exchange rates gains; Excess Bank Charges recoveries; and Forex Equalization stand at about N619.857 billion.
The breakdown further showed that from the total distributable revenue for the Month, the Federal Government received N257.681 billion, representing its 52.68 per cent share of the federation accounts allocationt; the States got N169.925 billion, representing 26.72 per cent with the 774 Local Government Councils receiving N127.722 billion, representing 20.60 per cent of the allocation.
As usual, the Oil Producing States also received N50.946 billion being the 13 per cent derivation revenue.
According to a statement signed by Oise D. Johnson, Head Press and Public Relations, Office of the Accountant General of the Federation (OAGF), during the period, the federation crude oil export sales rose by about 46 per cent, resulting in improved federation revenue from $425.00 million previously to $574.95 Million.
The statement also noted that Shut-in and Shut-down persisted while some Terminals remained closed due to leaks and maintenance issues.
It however disclosed that while Petroleum Profit Tax (PPT) increased significantly and Companies Income Tax (CIT) recorded a marginal increase, revenues from Value Added Tax (VAT), Oil Royalty, Import and Excise Duties witnessed downward moves during the month under review.
The OAGF spokesman also stated that the current balance in Excess Crude Account (ECA) as at March 27, 2019 is $183 million.
