By Etuka Sunday
Federation Account Allocation Committee (FAAC) yesterday distributed a whopping sum of N637.704 billion to the three tiers of government; Federal, States and Local Governments.
The high sharing was attributed to the significant increase in the revenue generation for the month of August, 2017.
Chairman of FAAC and Minister of Finance, Mrs Kemi Adeosun, represented by the Accountant General of the Federation Mr. Ahmed Idris while briefing finance correspondents at the end of the meeting in Abuja, said that the gross statutory revenue received for the month of August, was N550.992 billion and was higher than the N387.319 billion received in the previous month by N163.673 billion.
Giving the breakdown, Idris said that the shared amount comprise the Month’s Statutory distributable revenue of N550.992 billion and the Value Added Tax of N86.712 billion, making up N637.704 billion.
Accordingly, from Net Statutory Allocation, the Federal Government received N260.609 billion representing (52.68%); States received N132.184 billion (26.72%); Local Government Councils received N101.908 billion representing (20.60%).
This brought the total allocation to the three tiers for the month under review; the Federal Government received N273.095 billion, States got N173.806 billion and the Local Government Councils received N131.044 billion.
The Oil Producing States received N41.977 billion as 13% mineral oil derivation revenue.
Also, from the Value Added Tax (VAT) revenue, the Federal Government received N12.487 billion (15%); states N41.622 billion (50%) while the Local Government Councils got N29.135 billion (35%).
The Federal inland revenue Service (FIRS) which generated N168.211 billion, collected N6.648 billion being its 4% cost of collection.
The Nigeria Customs Service, in the same period generated N58.297 billion and also collected N4.081 as its 7% cost of collection.
While the Department of Petroleum Resources (DPR) generated N39.615 billion for the month of August and collected N1.585 billion as its 4% cost of collection.
The accountant General explained that there was a decrease in the average price of crude oil from $51.05 to $50.44 per barrel and a significant increase in export volume by 0.85 million barrels, which resulted in increased revenue from export sales revenue by about $41 million.
There was also shut-in and shut-down of pipelines due to the activities of vandals as well as for maintenance which impacted negatively on production.
He stated that Force Majeure declared at the Forcados terminal since February, 2016 was still in place.
However, significant increases were also recorded in Companies Income and Petroleum Profit Tax while Import and Excise Duties and Value Added Tax recorded marginal increases.
Idris disclosed further that the balance of the Excesses Crude Account is $2.309 billion as at August 2017.