FAAC augments January allocation with N50bn

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…As FG, States, LGs share N660.36bn

The Federation Accounts Allocations Committee (FAAC) Wednesday distributed to the three tiers of government, the sum of N660.136 billion for the month of January. 

Briefing journalists after the FAAC, the Minister of Finance, Mrs Zainab Ahmed, said the Committee had to take the sum of N50 billion from the ‘forex equalisation account’ to augment the shortfall in the amount distributed for the month. 

According to the minister, who was represented by the Accountant-General for the Federation, Idris Ahmed, the amount of N610.368 billion was smaller than the N649.198 billion distributed in December 2018. 

Idris noted that an aggregation of different factors contributed to the decrease in the amount shared by the three levels of government. 

The AGF said, FAAC’s decision to augment the allocation with N50 billion “will be communicated to the minister for her approval”.

A breakdown of the amount distributed showed that the federal government received N252.412 billion, the States received N170.541, the local government councils received N127.923 billion. The oil producing states received N41.992 billion as 13% derivation revenue and the revenue generating agencies received N17.500 billion as cost of revenue collection.

“For the month of January 2019, the gross revenue of N505.246 billion was received in the month of January 2019. This was lower than the N547.462 billion received in the previous month by N42.216 billion.

“The gross revenue from Value Added Tax (VAT) was N104.468 billion as against N100.760 billion distributed in the previous month, resulting in an increase of N3.708 billion. From the total gross revenue from VAT, the Federal Government received N15.044 billion, the States received N50.145 billion, the Local Government Councils received N35.102 billion and the Revenue Generating Agencies received N1.178 billion.

“For the month of January 2019, the federation crude oil sales increased by 2.4 million barrels, resulting in increased federation revenue by $149.94 million despite a drop in price of crude oil from $81.06 to $75.00 per barrel. In the month under review, oil royalty, import and excise duties increased substantially while Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) decreased marginally,” a communique from FAAC said. 

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