FG, States, LGs Share N510bn For August As Revenues Ramp Up – Business Day

The Federal, States and Local Governments of Nigeria yesterday shared a total of N510,270 billion for the month of August as revenues ramped up on account of collections from duties as well as Value Added Tax (VAT).

Announcing the distribution yesterday at the monthly Federation Account Allocation Committee (FAAC) meeting in Abuja, Kemi Adeosun, Minister of Finance said the the amount when compared to the N493.82bn shared in the month of July represents an increase of N16.4bn.

The gross statutory revenue for the month under review was disclosed as N315,045 billion which was higher than the N287,819 billion received in the previous month (July) by N27.226 billion.

According to Adeosun, from the Net Statutory Allocation shared, the Federal Government received N149.310 billion, state governments received N75.732 billion, Local governments received N58.386 billion while the oil producing states received N20.293 billion as 13 per cent derivation.

Crude oil export volume increased by 2.2 million barrels in May, 2016 despite the brief Force Majeure declared at Qua Iboe and Bonny Terminals and a subsisting Force majeure at Forcados Terminal.

According to the communique issued at the end of the FAAC meeting, “there was $109.40 million revenue increase in Federation Export Sales as a result of the increase in average price of Crude Oil from $42.21 in April to $46.06 per barrel in May, 2016.

“A rise in the volume of dutiable imports contributed significantly to the increases recorded by Import Duty and VAT. Increase in Petroleum Profit Tax (PPT) collections was attributed to receipts from NPDC and Joint Venture Operators.”

The communique further revealed that the sum of N6.330 billion was refunded by NNPC to FG while a total of N84.263 billion was declared as Excess gain.

The Minister also announced that the balance of the excess crude account, currently stands at $2.91bn.
During the interactive session with Journalists, she hinted that majority of the states owing salaries have started paying up and that FG is satisfied about how they have started fulfilling their obligations.