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Published On: Thu, Nov 20th, 2014

FAAC proposes subsidy removal, as FG, States, LG’s share N593.33bn for October

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Minister of State for Finance, Mr Bashir YugudaBy Etuka Sunday with agency report

Worried by the consistent revenue shortfall in the country, the Federation Accounts Allocation Committee (FAAC) in its meeting hinted there may be total removal of fuel subsidy.

This was disclosed by the Chairman, Finance Commissioners Forum, Timothy Odah shortly after the meeting.

According to him, state governments were still clamouring for total removal of fuel subsidy.

He said the subsidy payment was not necessary considering the fact that there is “no enough money”.

“There is no reason giving out what you do not have,” he said.

On the declining global oil price, Odah said the state governments were aware and stressed that diversification of the economy was necessary to cushion the effect of the development “in the long run”.

Meanwhile, the Minister of State for Finance, Mr Bashir Yuguda, announced that federal, states and local governments had shared N593.33 billion revenue that accrued to the nation in October.

Yuguda said that the shared amount comprised statutory revenue of N484.32 billion, N35.55 billion Subsidy Reinvestment and Empowerment Programme (SURE-P) funds and N6.33 billion refunded by the Nigerian National Petroleum Corporation (NNPC).

Other component of the money, according to him, is Value Added Tax (VAT) amounting to N67.14 billion.

The minister while giving the breakdown of the distribution of the revenue among the three tiers of government said, the Federal Government received N224.26 billion representing 52.68 per cent, and states, N113.75 billion, representing 26.72 per cent.

The local governments, he said, received N87.69 billion, amounting to 20.60 per cent of the distributed revenue.

He also disclosed that N47.12 billion, representing 13 per cent derivation revenue was shared among the oil producing states.

On VAT, he said that the gross revenue collected for the month increased by N2.03 billion to N67.13 billion as against N65.1 billion recorded in the preceding month.

The minister said that the nation generated N420.03 billion as mineral revenue during the period as against N374.74 billion generated in September, adding that the performance indicated a “marked increase” of N45.29 billion between the two months.

“The non-mineral revenue for the month of September is N116.66 billion, which when compared to the N127.36 billion generated in August shows a decrease of N10.7 billion.

“FIRS received N2.47 billion, the Nigerian Customs got N3.83 billion and DPR received N5.17 billion as their cost of revenue collection for the month of September ,’’ he said.

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