FAAC Allocates N655bn to FG, States, LGs

minister-of-finance-kemi-adeosunMinister for Finance, Kemi Adeosun
  • FAAC Allocates N655bn to FG, States, LGs

The Federation Account Allocation Committee on Tuesday distributed the sum of N655.17bn to the three tiers of government as statutory allocation for the month of December 2017.

The Minister of Finance, Mrs. Kemi Adeosun, who presided over the meeting that lasted for over four hours, confirmed the amount while briefing journalists in Abuja.

The N655.17bn shared for December was N45.7bn higher than the N609.9bn allocated in November.

Giving a breakdown of the statutory distribution, Adeosun said after deducting costs of collection to the Nigeria Customs Service and the Federal Inland Revenue Services, the Federal Government got N252.54bn; the 36 states, N128.09bn; while the 774 local government councils got N98.75bn.

In addition, the minister said the sum of N47.73bn was given to the oil producing states based on the 13 per cent derivation principle.

In terms of Value Added Tax receipts, she noted that after making statutory deductions to the FIRS, the three tiers of government shared N80.60bn, with the Federal Government receiving N13.09bn; state governments, N40.30bn; and local governments, N28.21bn.

She put the gross revenue generated during the period at N540.44bn, adding that this was lower than the N549.53bn received in the previous month by N9.08bn.

The finance minister also disclosed that the accruals into the Excess Crude Account remained at $2.31bn.

Also speaking after the meeting, the Chairman of Finance Commissioners’ Forum, Alhaji Mahmoud Yunusa, said many state governments had keyed into the efficiency unit initiative of the Federal Government aimed at reducing the high cost of governance.

Yunusa, who is the Commissioner for Finance, Adamawa State, stated that many state governments had embarked on cost-cutting measures so as to have revenue to implement capital projects.

This, he added, was in line with the Federal Government’s fiscal sustainability plan, which the states signed on to early last year.

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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.

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