FAAC Allocates N387.77bn to FG, States, LGs

The Federation Accounts Allocation Committee (FAAC) on Tuesday shared the sum of N387.7bn among the three tiers of government.

The allocation, which was for the month of December 2015, represented an increase of N17.88bn over the N369.8bn distributed in November.

Addressing journalists in Abuja shortly after the meeting, the Permanent Secretary, Federal Ministry of Finance, Mr. Mahmoud Isa-Dutse, said the amount was distributed from four sources.

These are statutory allocation of N315.01bn, Value Added Tax N62.07bn, exchange gain of N4.35bn and N6.33bn refund made by the Nigerian National Petroleum Corporation for the debt it owed the Federation Account.

From the statutory allocation, Isa-Dutse said the Federal Government, after deducting the cost of collection, received the sum of N147.56bn; the states, N74.84bn; and local governments, N57.7bn.

He said the sum of N27.7bn was allocated to the oil producing states based on the 13 per cent derivation principle.

From Value Added Tax revenue, the permanent secretary said after deducting the cost of collection, the Federal Government got N8.93bn, representing 15 per cent; states, N29.79bn or 50 per cent; and local governments, N20.85bn or 35 per cent of the total.

Isa-Dutse, who stood in for the Finance minister, Mrs. Kemi Adeosun, said, “The gross statutory revenue of N315.01bn received for the month of August was higher than the N297.45bn received in the previous month by N17.56bn. Shutdown of (oil) production for repairs and production shortfall due to technical hitches at different terminals throughout the month impacted negatively on crude oil and gas revenue.

“Also, there was revenue loss of $143.96m as a result of reduction in federation export sales and a drop in the average price of crude oil from $49.58 in October to $43.40 in November 2015.”