FAAC: FG, States, LGAs share N532b …as oil export sales drop by 1.25million barrels

FAAC: FG, States, LGAs share N532b …as oil export sales drop by 1.25million barrels

Chris Steven, Abuja

The monthly Federation Account Allocation Committee (FAAC)of has shared N532 billion amongst the three tiers of government on Thursday for the month of October 2017.

The distributable revenue available to the three tiers of government for the month of October dipped by N20 billion, figures presented during the meeting showed.

At the end of the meeting which was chaired by Mahmoud Isah Dutse in the absence of Kemi Adeosun, Minister of Finance, available statistics showed that the gross statutory revenue of N 443.045 billion received for the month was higher than the N423.961billion received in the previous month by N19.084billion.

There was a decrease in revenue from export sales of $42.94 million due to a decrease in crude oil production by 1.25million barrels.

However, according to Dutse, “the average price of crude oil increased from $46.29 to $48.66per barrel.

” Some of the issues that impacted negatively on crude oil production were attributed to ageing facilities which resulted to shut ins and shut down of pipelines at various Terminals for repairs and maintenance.

He said  the Petroleum profit tax (PPT) increased significantly while import duty and value added tax (VAT) improved only slight.
Company income Tax and Oil Royalty recorded slight decrease in the month under review.

The distributable statutory revenue for the month was N443.045 billion.

“The total revenue distributable for the current month including VAT is N532.758billion,” he said.

Giving the breakdown, he said the Federal Government received a total of N218.619 billion including the Value Added Tax; State governments got a total of N147.396 billion while the Local Government Councils received a total of N110.58 billion VAT inclusive.

The gross revenue accrued from the Value Added Tax (TAX) was 89.713 billion as against N83.315 billion distributed in the proceeding month which resulted to an increase of N6.398 billion.

The Federal Inland Revenue Service (FIRS) received N2.598 billion being its 4 percent cost of collection, the Nigeria Customs Service (NCS) got N4.050 billion representing its 7 percent cost of collection.

While the Department of Petroleum Resources (DPR) received N3.078 billion being its 4 percent cost of collection.
The oil producing states also received N40.847 billion as 13 percent mineral revenue derivation.

Fielding questions from newsmen present, Mr. Mahmoud Yunusa Chairman, Commissioners Forum, explained that the meeting was postponed by two weeks following discrepancies noticed from records presented by the Nigeria National Petroleum Corporation (NNPC).

According to him, state governors were involved in the reconciliation of the accounts.

He assured that the discrepancies noticed will not “repeat itself as the states would now be involved in the accounting process.”