FAAC Disburse N698.7 Billion To Federal, States, Local Governments For September

Finance Minister, Ahmed

The Federation Accounts Allocation Committee (FAAC), Thursday, disbursed to the Federal, states and local governments a total of N698.710 billion for the month of September, 2018.

The gross statutory revenue for the month was N569.281 billion, which was lower than  the N627.139 billion shared in August by N57.858 billion.

The Minister of Finance, Mrs Zainab Shamsuna Ahmed, who presided over the monthly FAAC meeting, stressed on the need for the three tiers of government to save.

She further tasked FAAC members on the need to maintain transparency and instill a saving culture for the rainy day.

“We have to save. We are not only saving for today but for tomorrow”, she said according to a statement by the Special Adviser to the Minister (Media and Communications), Mr Paul Ella Abechi.

A communique issued by the Technical Sub-Committee of FAAC signed by the Accountant-General of the Federation, Ahmed Idris, showed that the distributable statutory revenue for the month amounted to N569.281 billion while the total revenue distributable for the month was N698.710 billion.

The communique further showed that “Crude oil export sales increased by 0.17 million barrels resulting in increased revenue to the Federation of $8.48 million. However the average unit price dropped from $77.10 to $75.69.

“There was shutdown of pipelines which resulted in shut in of production at various pipelines. Revenue from Royalties increased significantly while Value Added Tax (VAT), Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) decreased significantly.”

The breakdown for the month of September showed that the gross revenue available from the VAT was N79.154 billion as against N114.542 billion distributed in the preceding month, resulting in a decrease of N35.388 billion.

Also, while the federal government got N277.197 billion, the state and local governments got N172.810 billion and 130.534 billion, respectively.

The derivation (13% of mineral revenue) amounted to N52.596 billion and cost of collection/transfer and FIRS Refund was put at N15.572 billion.

The next FAAC meeting is scheduled during National Council of Finance and Economic Development (NACOFED), proposed for Wednesday, November 28, 2018 in Kaduna.

Meanwhile, the report of the committee on the Excess Crude Account (ECA) was stepped down and withdrawn to enable the committee to reworked and represented it at the next meeting.