Connect with us
Advertise With Us

BUSINESS

FAAC Moves To Get New Revenue Reporting Template For NNPC

Published

on


The Federal Account Allocation Committee (FAAC) has begun the process of producing a new reporting template that will serve as a guild for the Nigerian National Petroleum Corporation (NNPC) on revenue remittance to the federation account. The move, according to FAAC, is part of efforts to find a lasting solution to the frequent issue of revenue controversy by the state oil company. Meanwhile, FAAC yesterday approved the sharing of the total sum of N714.809 billion as revenue for the month of July to be shared among all the tires of government for August. The minister of finance, Mrs Kemi Adeosun made the disclosure yesterday at the monthly meeting of FAAC. Adeosun said the federal government is at the final stage of the daft, which she said will be ready by next meeting slated to hold on September 26. This is as she also disclosed that President Muhammadu Buhari has directed the NNPC to always hold a preFAAC meeting with the Ministry of Finance to avoid issues that always lead to crisis between FAAC and NNPC. “A committee for the revenue reporting template for the NNPC and the federation account will be ready before the next meeting. It will define the flow of revenue to the federation account,” Adeosun said. The issue of template is meant to achieve a reliable template for revenue reporting for NNPC.

Revenue reporting to FAAC from NNPC has not been up to date in the past 10 years and this new template is expected to reduce deficiencies. Adeosun also announced that a revenue reporting committee has been set up to produce drafts of rules to regulate the Excess Crude Account (ECA) and management of FAAC. “We have also set up a committee chaired by the Delta State Commissioner for Finance, David Edevire, to come out with rules on our Excess Crude to ensure that we have a rule base Excess Crude Account and will report back to the committee next month,” the Minister added. The distributable statutory revenue for the month is N597.975 billion. The total revenue distributable for the month of August (including VAT, Forex Equalisation and additional revenue from is N714.809 billion. Breakdown of the figures from the meeting showed that the federal government got a total of N298.288 billion, representing 52.68 percent of the total Allocation, while the 36 States received N183.773 (26.72%). The 774 Local governments of the federation got N138.964, representing 20.60 per cent of the distributable revenue from which 13 per cent, representing N49.777 billion derivations was shared to oil and other mineral resource producing States. All the figures are inclusive of Value Added Tax. There was now a balance of $2.33 billion in the Excess Crude Account.



Copyright LEADERSHIP.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from LEADERSHIP Nigeria Newspapers. Contact: [email protected]





Which party would you vote for President in the 2019 general election?

View Results

Loading ... Loading ...


Advertisement
Advertisement

Sign up for our newsletter

Advertisement

MOST POPULAR

Pin It on Pinterest

Share This

Share this post with your friends!