FAAC distributes N493.828b July revenue
has shared N493.828billion generated revenue for
the month of July 2016 among the federal, states
and local governments in Nigeria.
According to the figures released by Office of the
Accountant General of the Federation, the gross
statutory revenue including solid minerals is
N275.102, while the net allocation is
N258.151billion.
The gross value added tax is N66.987 billion and the
total distributable revenue is N335.759 billion. The
shared amount comprised the month’s statutory
revenue of N258.151 billion, Value Added Tax (VAT)
of N66.987 billion, exchange gain of N70.037 billion,
exchange gain differential claim of N36.494 billion
for the month of May 2016, additional distribution
of N50.165 billion from excess PPT and N1.373
billion as excess bank charges recovered from 2008
to 2012.
There was also a N6.330 billion refund to the
federal government by Nigerian National Petroleum
Corporation (NNPC). Consequently, from Statutory
revenue, federal government received N129.212
billion (52.68%); states received N65.538 billion
(26.72%); local government councils received
N50.527 billion (20.60%); while the oil producing
states received N12.874 billion as 13% derivation
revenue.
Furthermore, from the Revenue available from the
VAT, federal government received N9.646 billion
(15%); states received N32.154 billion (50%), while
the local government’s received N22.508 billion
(35%) and less 4 per cent cost of collection to
Federal Inland Revenue Services (FIRS).
Also the N50.165 billion from the Excess Petroleum
Profits Tax is to be shared among the three tiers of
government according to the revenue allocation
formula. The Communique from the FAAC sub-
technical committee also explained that there was a
decrease in the Volume of Crude oil export by 2.8
million barrels in April 2016 due to a subsisting
Force Majeure at Forcadose Terminal. There was
also a shut-in and shutdown of pipelines due to the
activities of vandals as well as maintenance, which
impacted negatively on production.
Presenting FAAC distribution report at the end of
the meeting, the Permanent Secretary in the
Ministry of Finance, Dr. Mahmoud Isa –Dutse, who
represented the Minister of Finance explained that
the revenue dipped because crude oil export
decreased.
His words: “There was a revenue decrease of
$102.17 million in Federation Export Revenue
despite the increase in average price of crude oil
from $38.64 to in March to $42.21 in April 2016.
Import duty however recorded a marginal increase
but the performances of companies income tax and
petroleum profit tax declined drastically due to the
fact that joint venture companies field their actual
annual returns and made payments in the month of
June while blue chip companies made their tax
payments before the 30th of June 2016 deadline.”
He revealed that the sum of N106 billion was raised
from the gains of the foreign exchange following
the recent Central Bank of Nigeria (CBN) floating
foreign exchange policy regime, where the United
State has gained more value against the Naira. Of
the amount, he said the sum of N70.037 billion was
for the month of July, while balance of N36.494
billion was the arrears of the exchange gain for
May, which the National Economic Council (NEC)
mandated the CBN to pay the Federation on the
recent rate instead of the old level.
Also, he announced that deposit money banks too
were forced to refund to the Federation Account the
sum of N1.373 billion being excess bank charges
they made of deposit of federation revenue at their
deposals. A breakdown of the revenue distributed
indicate that the federal government got N192.212
billion from statutory revenue and N9.646 billion
from VAT.
The nine oil producing States share a total of N
22.874 billion being 23 per cent of derivation .
Meanwhile, Lagos which just joined the oil
producing States is not yet qualified for share in the
derivation principle until the return of minerals
export proceeds which comes into the coffers three
months from the date of exports.
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