Friday, 24 July 2015

FAAC allocates N518bn to three tiers of govt



 
 The Federation Accounts Allocation Committee on Friday allocated a total sum of N518.54bn to the three tiers of government for the month of June.

The allocation, when compared to the N403.02bn distributed in the previous month of May, represents an increase of N115.5bn or 28.67 per cent.

Addressing journalists shortly after the meeting, the Permanent Secretary, Federal Ministry of Finance, Mrs. Anastacia Nwaobia, said the allocation of N518.54bn was distributed from three major sub heads.

They are Statutory Allocation, N449.68bn; Value Added Tax, N62.39bn; and Exchange Gain, N6.46bn.
Nwaobia, who presided over the meeting, said from the statutory allocation of N449.68bn, the Federal Government received the sum of N218.92bn; states N111.04bn; local government councils N85.6bn, while the sum of N34.1bn was allocated to the oil producing states based on the 13 per cent derivation principle.

From the VAT distribution, she said the Federal Government got N9.35bn representing 15 per cent; states N31.19bn, while the local governments are to share the sum of N21.83bn.

She put the balance in the Excess Crude Account at $2.207bn, noting that the sum of N6.33bn was refunded by the Nigerian National Petroleum Corporation being debt owed the Federal Government.
On the revenue side, Nwaobia put the gross revenue received for the month at N485.95bn, noting that this was N161.89bn higher than the N324.06bn generated in May.

She said declaration of force majeure by Shell Petroleum Development Company, shut down of trunks and production pipeline at Nembe and Trans Forcado terminal ,impacted negatively on crude oil revenue.


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