The Federation Account Allocation Committee (FAAC), on Wednesday agreed to share N647.39 billion to federal, states and local governments as revenue generated in the month of February.
The FAAC meeting that was declared inconclusive on Tuesday, was reconvened and concluded yesterday. Revenue figures presented by the Accountant General of the Federation were finally adopted and shared among the three tiers of Government.
The acceptance of the figures by the members of FAAC followed consultations made by the Minister of Finance and Accountant-General of the Federation with some State Governors and representatives of State Commissioners of Finance of the federation.
Accordingly, a total sum of N647.390 billion was shared as FAAC allocation among the Federal, States and Local Government Councils as revenue for the month of February 2018. LEADERSHIP had reported that documents obtained by our reporter showed that the same sum of N647.390billion was brought on the table for sharing.
The communiqué issued by the Sub-Committee of FAAC Office of the Accountant-General of the Federation, indicated that the gross statutory revenue received for the month is N557.943 billion and is higher than N538.908 billion received in the previous month by N19.035 billion. The shared amount comprise the Month’s Statutory distributable revenue of N557.943 billion and the Value Added Tax (VAT) of N89.447billion making up the sum of N647.390 billion.
Accordingly, from Net Statutory Allocation, the Federal Government received N257.927 billion representing (52.68%); States received N130.824 billion (26.72%); Local Government Councils received N100.860 billion representing (20.60%); while the Oil Producing States received N57.357 billion as 13% derivation revenue. Meanwhile, FIRS, Nigeria Custom Service and DPR received the sum of N14.554 billion as their cost of collection and FIRS refund.
Furthermore, from the Revenue available from the Net VAT, Federal Government received N12.880 billion (15%); States received N42.935 billion (50%) while the Local Government Councils received N30.054 billion (35%).
The Communique further explained that there was an increase in the average price of crude oil from $57.71 to $63.08 per barrel and an increase in export sales of 2.8 million barrels which resulted in increased revenue from Export sales of $194.39 billion .It further stated that other issues which negatively affected the Crude oil production and resulted to shut-ins and shut-downs are pipelines maintenance and repairs. Furthermore, significant increases were recorded in Petroleum Profit Tax (PPT) while revenues from Import Duty, Companies Income Tax(CIT) and Value Added Tax (VAT) decreased considerably in the month under review.
Chairman of Finance Commissioners’ Forum, Mahmoud Yenusa, explained that the reconvening of the meeting had become necessary to enable States pay workers their salaries before the Easter break.
“The account submitted by the NNPC is not acceptable to the States but we are willing to jointly reconcile the revenue figure with the leadership of NNPC. “We agreed last night to reconvene the meeting for the benefits of Nigerian workers at all tiers of government, to enable them receive their salaries,” the Adamawa State Commissioner of Finance said.
Meanwhile, the Accountant General of Federation on Wednesday signed the mandates for the Central Bank of Nigeria to pay the approved revenue allocation into the accounts of the Federal, State and Local Governments.