FG, states, LGs share N467.8bn in Month of March

Accountant General of the Federation, Mr Ahmed Idris

The Federation Account Allocation Committee ‎(FAAC) yesterday revealed that the three tiers of government shared N467.8 billion in March as federal allocation.

Briefing journalists at the end of the meeting, the Accountant General of the Federation, Mr Ahmed Idris, who represented the chairman of FAAC and Minister of Finance, Mrs Kemi Adeosun, explained that the Federal Government received N147.833 billion inclusive of VAT while states and local government got N106.991 and N79.807 billion respectively.

He further explained that despite the increase in the average unit price of crude oil per barrel from $44,74 to $52,86, the revenue from the federation export sales dropped by $6.4 million due to the decrease in crude oil export volume.

Production suffered during the period due largely to leakages in the pipelines arising from sabotage, shut down of terminal for turnaround maintenance (TAM) and the force majeure declared at Forcados and Brass terminals that were still in place.

There was however a noteworthy increase in revenue from oil royalty. Also significant increases were recorded in revenues from companies income tax (CIT), import and excise duties and value added tax (VAT).

The distributable statutory revenue for the month, he said was N299.930 billion.

The sum of N6.330 billion was refunded by Nigeria National Petroleum Corporation (NNPC) to federation account.

Therefore, the committee proposed distribution of N22.259 billion from the excess petroleum profit tax (PPT) account. Also, exchange gain of N66.967 billion was proposed for distribution. The total revenue distributable for the month including VAT was N467.807 billion.

A breakdown the distributable amount shows that the federal government got N189.234 billion, states N127 billion, and local governments N96billion. The sum of N35.747 billion went to oil producing states as 13 per cent derivation.

Similarly, the cost of collection/FIRS (Federal Inland Revenue Service) refund was  N18.824 billion.
Idris explained that the gross statutory revenue of N331.583 billion received for the month of March was higher than the N290.163 billion recorded in the previous month (February) by N41.420 billion.

“Despite the increase in the average unit price of crude oil per barrel from ,$44.74 to $52.86, the revenue from Federation Export sales dropped by $6.4 million. This was due to the decrease in crude oil export volume

“Production suffered during the period due largely to leakages in the pipelines arising from sabotage, shut down of terminals for turnaround (TAM) and force majeure declared at Forcados and  Brass Terminals that were still in place.
“There was, however a  noteworthy increase in revenue from oil royalty. Also, significant increases were recorded in revenue from Companies Income Tax (CIT, import and excise duties and Value Added Tax (VAT),” he said.

The Chairman of Commissioner Forum, Mr Mahmood Sali Yunusa noted that there was an increase of over N13 billion in the revenue, adding that they were expecting further increase by next month with the increase in oil price and the Federal Government effort to sustain peace in the Niger Delta Region.

“We have shared the money very peacefully,” he said.

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