By Gift Samuel, The Sight News
Abuja-The Federation Account Allocation Committee ( FAAC),has distributed the sum of N701.022 billion to the three tiers of government, as revenue allocation in the month of May 2018.
The amount shared, shows a significant increase in the revenue available for distribution, compared to last month’s figure of N626.8 billion.
Speaking to newsmen in Abuja after the FAAC meeting, the Permanent Secretary, Federal Ministry of Finance, Dr. Mahmoud Isa-Dutse, said that all the revenue lines increased, with most of the increment coming from the non- oil sector.
Giving a breakdown of the distributions, he noted that the Federal Government got N289.045 billion, States got N181.963 billion, while the Local Government Areas received N137.327 billion.
He also added that the 13 per cent mineral revenue for oil producing states was N49.756, while the cost of revenue collection and Federal Inland Revenue Service (FIRS) refund stood at N42.932 billion.
The Permanent Secretary revealed, that the Excess Crude Account(ECA) balance, after the withdrawal of about $1billion by the Federal Government, to purchase aircrafts to fight insurgents, is now $1.911 billion after N24.5 billion savings was added to it.
Isa Dutse further said, that the sum of N11.269 billion was received from NNPC after April FAAC and it was distributed accordingly, adding also that discussion is ongoing between NNPC and all the parties involved to resolve all matters in due course.
He stated that the Net Statutory revenue, stood at N574.689, from which the Federal Government received N276.535 billion representing 52.68%; States received N140.262billion representing 26.72%; Local Government Councils received N108.136billion representing 20.60%; while the Oil Producing States received N49.756billion also representing 13% derivation revenue.
The Revenue available from the Value Added Tax (VAT), stood at N83.401, from which the Federal Government received N12.510 representing 15%; States received N41.701billion representing 50% while the Local Government Councils received N29.190 billion also representing 35%.
According to him, “the Gross statutory revenue received for the month was higher than the N480.599billion received in the previous month by N132.458 billion. Crude oil export sales volume increased by 64% when compared with the 7.72million barrels from the previous month, resulting in increased revenue from Federation Crude Oil Export Sales by $226.90million. Also, the average crude oil price increased from $65.72 to $66.78 per barrel”.
Also speaking, the Chairman, Commissioners of Finance Forum, Mahmoud Yunusa, noted that the states are excited about the improvement in the figures available for distribution in May, noting that the revenue has passed the N600 billion mark, but is yet to reach the N1 trillion target.
On the review of the revenue sharing formula, he said, “The revenue sharing formula discussions have commenced within us, to see how we can be able to have a realistic and justifiable review of the revenue sharing formula. I believe the states and local governments should have more revenues to do their work so people can feel the presence of government”.