Economy

FAAC Allocates N649.19bn to FG, States, LGs

  • FAAC Allocates N649.19bn to FG, States, LGs

The Federation Account Allocation Committee on Friday shared the sum of N649.19bn to the three tiers of government as statutory allocation for the month of December.

The amount is contained in a communiqué issued by the committee after its meeting, which was held at the headquarters of the ministry of finance.

The communiqué stated that in December, the federation generated a total revenue of N547.46bn.

This, it stated, was about N102.16bn lower than the N649.62bn received in November.

It stated that federation crude oil export sales dropped by 1.7 million barrels, resulting in a drop in federation revenue by $83.54m.

This, it explained, was regardless of a significant increase in the price of crude oil from $72.84 to $81.06 per barrel.

The communiqué stated that there was shut-in, shut-down and closure of production at various terminals due to fire leakages and flooding.

However, it added that revenues from Value Added Tax, import and excise duties and royalties increased marginally, while Companies Income Tax and Petroleum Profits Tax decreased significantly.

From the statutory allocation shared in December, the Federal Government received N255.20bn, states received N129.44bn, while local government councils got N99.79bn.

In addition, the communiqué said oil producing states received N45.524bn based on the derivation principle of 13 per cent.

For VAT revenue, it said the Federal Government received N14.51bn, states received N48.36bn, and local government councils received N33.85bn.

The committee put the balance in the Excess Crude Account at $631m.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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