By Gift Samuel, The Sight News
The Federation Account Allocation Committee (FAAC) on Tuesday distributed the sum of N558.082 billion to the three tiers of government as allocation for the month of September 2017.
Addressing pressmen after the meeting in Abuja, the Chairman of FAAC and Minister of Finance, Mrs Kemi Adeosun said that the gross statutory revenue of N423.961 billion received for the month was lower than the N550.992 billion received in the previous month by N127.023 billion.
The Minister, who was represented by the Accountant General of the Federation Mr. Ahmed Idris, said that the gross revenue available from the Value Added Tax(VAT) was N83.315 billion as against N86.712 billion distributed in the preceding month, resulting in a decrease of N3.397 billion
A breakdown of the net statutory allocation indicates that the Federal Government received N210.051 billion inclusive of Value Added Tax (VAT).
The State government got a total of N140.447 billion while the local government received a total of N107.441 billion including VAT respectively.
Federal Inland Revenue Service (FIRS) generated N97.520 billion for the month of September and received its 4% cost of collection which amounted to N3.820 billion.
The Nigeria Customs Service (NCS) generated N50.815 billion for the month of September and also took its 7% cost of collection N3.557 billion.
While the Department of Petroleum Resources (DPR) generated the sum of N80.361 billion for the same month and also received its 4% cost of collection which is N3.214 billion.
There was a refund of N2 billion to the FIRS by the federation account allocation committee.
Idris noted that there was a significant increase in revenue from export sales of $176.4 million due to an increase in crude oil production by 4.12m barrels.
He said that the average price of crude oil decreased from $50.44 to $46.29 per barrel, adding that activities resumed at Forcados Terminal for the first time since February, in 2016.
He said, “There were shut-ins and shut down at terminals for maintenance and repairs. Oil recovery recorded significant increase in the month under review but there was considerable decline in revenue from companies income tax (CIT), petroleum profit tax (PPT), import duty and value added tax (VAT)”.
The distributable Statutory Revenue for the month is N423.691b. The total revenue distributed for the current month including VAT is N558.082b.
Reacting to questions, the Chairman of Finance Commissioners’ Forum and Commissioner of Finance, Adamawa State, Mr Mahmood Saleh Yunusa said no state is planning of taking any loan as there has been a lot of interventions from the federal government to address some financial challenges.
Yunusa said “there is no plan from state to borrow to augment financial grabs. We are looking at cooperating with FG to boost internal revenue flow”.
Meanwhile, as at October 24,2017, the Excess Crude Account (ECA) was put at $2.309 billion while the Petroleum Profit Tax(PPT) was put at $868 million.