FG, States, LGs share N638.775bn for November

By Etuka Sunday

The Federation Accounts Allocation Commission (FAAC), Tuesday shared the total amount of N638.775 billion for the month of November.

The amount shared indicates an increase of N60.163 billion over N593.337 billion shared in October 2014.

FG got N196.463 billion, States went home with 99.649 billion while LGs got N76.825billion. The 13% derivation of N39.195billion was also shared among the states.

Minister of state for Finance, Amb. Bashir Yuguda who briefed the media after the meeting in Abuja said that the excess crude account now stands at 3.1billion Dollars.

Meanwhile, the Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala has that the Federal Government will not increase the Value Added Tax (VAT) for now.

According to the Minister, any increase in VAT is subject to approval by the National Assembly.

The CME who stated this on the sidelines of the Federal Accounts Allocation Committee (FAAC) meeting in Abuja explained that while it would work with state governments on the tax policy, raising VAT is

part of the measures to be taken.

Following the free fall of prices of crude oil in the international market, the Federal Government had in October announced a change in the proposed benchmark from $78 per barrel to $73 per barrel later

$65 per barrel for the 2015 budget.

With the price of oil at less than $60 per barrel, there are fears that the government might further cut downward its benchmark for 2015.

She said: “let me just make it clear that we are not increasing it yet.

“Some have more Internally Generated Revenues (IGRs) than others, some higher recurrent. Each state will have to look at the circumstances.

The Minister noted that rather than increase VAT, states should concentrate on increasing their IGR. According to her, every state has its own peculiar circumstance.