FAAC Allocates N652bn to FG, States, LGs

minister-of-finance-kemi-adeosunMinister for Finance, Kemi Adeosun
  • FAAC Allocates N652bn to FG, States, LGs

The Federation Accounts Allocation Committee on Tuesday shared the sum of N652.2bn as statutory allocations to the three tiers of government for the month of June.

The amount is made up of revenues generated from oil and non-oil sources that were paid into the Federation Account.

Addressing journalists shortly after a meeting that was held at the headquarters of the Ministry of Finance, the Accountant-General of Federation, Alhaji Idris Ahmed, put the statutory revenue received during the month at N570.8bn.

This, he added, represented an increase of N253bn over the N317.56bn received in May.

Giving a breakdown of the N652.22bn shared, he said the Federal Government got N286.6bn; the states, N178.61bn; and local government councils, N134.92bn.

Ahmed added that the sum of N29.89bn was approved for sharing to oil-producing states based on the 13 per cent derivation principle.

Asked if Lagos State had started enjoying the 13 per cent derivation formula as an oil-producing state, the AGF said the state was already recognised as such.

He said, “Lagos is already being identified as an oil-producing state; the first hurdle has been crossed.

“The relevant agencies to determine the quantity of oil that is being produced from Lagos is working round the clock. We are on course; Lagos already know its position.”

He added that there was a decrease in the crude oil export volume in June, which affected oil revenue.

Ahmed explained, “The decrease in the average price of crude oil from $55.18 to $50.27 per barrel and a significant decrease in export volume by 3.20 million barrels resulted in decreased revenue from export sales for the federation by $183.68m.

“Crude oil production suffered due to leakages, shut-ins and shutdowns at terminals for maintenance and force majeure declared at the Forcados terminal since February.

“There were significant increases in Company Income Tax, being the peak period for its collection, and Petroleum Profit Tax. Also, Value Added Tax, import and excise duties recorded marginal increases.”

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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