FG, States, LGs Share N462bn for May as Allocation Improves

Kemi adeosunThe Minister of Finance, Kemi Adeosun and the U.S. Ambassador to Nigeria, Stuart Symington.
  • FG, States, LGs Share N462bn for May as Allocation Improves

A total of N462.359 billion was shared by the three tiers of government for the month of May, an increase over the N415.7 billion distributed for April.

A breakdown showed that Value Added Tax (VAT) accounted for N76.786 billion; statutory revenue, N317.562 billion, and exchange rates differential of N64.812 billion.

The figures were unveiled by the Permanent Secretary, Ministry of Finance, Dr. Mahmoud Isa-Dutse, at a briefing after the monthly meeting of the Federation Account Allocation Committee (FAAC) presided over by him.

He disclosed that the Nigerian National Petroleum Corporation (NNPC), which had been defraying its N450 billion indebtedness to FAAC monthly at N6.7 billion had liquidated the debt.

From the statutory allocation, the federal government got N147.682 billion; states, N74.906 billion; local governments, N57.750 billion while N20.505 billion went to the oil-producing areas as 13 per cent derivation.

According to Mahmoud, the gross statutory revenue of N317.562 billion received for the month was more than the N274.110 billion received in the preceding month by N43.452 billion, adding that everything would be done to ensure salaries were paid to civil servants before the Sallah celebration.

“The slight drop in the average price of crude oil from $55.38 to $55.18 per barrel and a decrease in export volume by 1.023 million barrels, reduced oil revenue by about $57.12 million. Crude oil production suffered due to leakages, sabotage, shut-ins- and shut -downs at terminals for maintenance and the force majeure declared at Forcados terminal since February, 2016 subsisted,” he said.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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