FAAC records shortfall, as FG, States, LGAs share N558bn

By Etuka Sunday

The total revenue accrued to the Federation Account Allocation Committee (FAAC) has dropped by N127.023 billion even as the FAAC on Tuesday distributed N558 billion to the Federal, States and Local Governments for the month of September 2017.
Chairman of FAAC and Minister of Finance, Mrs Kemi Adeosun while briefing finance correspondents after the meeting in Abuja, said that the gross statutory revenue of N423.961b received for the month was lower than the N550.992b received in the previous month by N127.023b.
The minister, who was represented by the Accountant General of the Federation, Mr Ahmed Idris said that there was a significant increased in revenue from export sales of $176.4 million due to an increase in crude oil production by 4.12m barrels.
Giving the breakdown, the Federal Government received N210.051 billion inclusive of Value Added Tax (VAT)
The states 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 however, noted that the average price of crude oil decrease from $50.44 to $46.29 prt barrel.
He said that activities resumed at Forcados Terminal for the first time since February, in 2016.
There were shut-ins and shut down at terminals for maintenance and repairs. Oil recovery recoded 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.
The Accountant General said that the Excess Crude Account stood at $2.309 billion while the Excess Petroleum Profit Tax (EPPT) account stood at $68 million as at October 24, 2017.
Reacting to questions, the Chairman of Finance Commisioners Forum and Commissioner of Finance, Adamawa State, Mr Mahmood Saleh Yunusa said, no state is planning of taking any loan because there have been a lot of interventions from the federal government to address some financial challenges.
He said: “there is no plan from state to borrow to augment financial grabs. We are looking cooperating with FG to boost internal revenue flow.”