FAAC: FG, States, LGs share N500.1bn for January

FAAC: FG, States, LGs share N500.1bn for January

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The Minister of State for Finance, Mr Bashir Yuguda, said that the
Federal, states and local government areas shared N500.1 billion
revenue for the month of January, 2015. Yuguda made this known
when he briefed newsmen on the outcome of the Federation Accounts
Allocation Committee (FAAC) meeting in Abuja on Tuesday.

He said that the amount comprised of the month’s statutory revenue
of N416 billion, and N6.3 billion refunded by Nigerian National
Petroleum Corporation (NNPC).

“Also, there is the exchange gain of N8.6 billion which is proposed for
distribution.

“NNPC has paid the sum of N776 million it owed the Federation
Account and remitted an additional amount of N4.4 billion, totaling
N5.195 billion.

“Therefore, the total revenue distributable for the month of January,
including VAT of N63. 9 billion is N500.1 billion.

He said that the Federal Government received N194.3 billion
representing 52.68 per cent and states, N98.5 billion, representing
26.72 per cent.

The local governments, he said, received N75.9 billion, amounting to
20.60 per cent of the amount distributed.

He also disclosed that N39.4 billion, representing 13 per cent
derivation revenue was shared among the oil producing states.

On VAT, he said that the gross revenue collected for the month
decreased by N9.5 billion from the N73.4 billion recorded in December.

Yuguda said N305.3 billion was generated as mineral revenue in
January as against the N381.5 billion generated in the preceding
month.

According to him, this shows a decrease of 76.1 billion between the
two months.

He also said that the non-mineral revenue for the month of January
was N110.6 billion as against the N107.7 billion generated in
December representing a decrease of N2.9 billion.

Yuguda lamented over the low revenue generation for the month, while
explaining certain reasons for it.

“There was a substantial loss of revenue due to further drop in crude
oil prices from 77.5 million U.S. dollars in November to 52.3 million
U.S. dollars in December.

“Also, a 33 per cent decrease in export volume between November and
December, 2014, translated to a loss of 159.8 million U.S dollars.

“The shutdown and shut in of trucks and pipelines at various terminals
continues to impact negatively on the revenue performance,” he said.

Yuguda also said that another factor was that the non-oil revenues
performed below the 2014 budgetary provisions.

He also added that the N35.5 billion which had become a monthly
amount being distributed under the SURE-P Programme was no more
because of the fall in oil prices.

He said that the new balance in the nation’s Excess Crude Account,
was 2.6 billion U.S dollars, and N19 billion in the Domestic Crude
Account.

In his comment, the Chairman, Finance Commissioners Forum, Mr
Timothy Odah, expressed concern over the continued dwindling of the
federation’s revenue.

He called on states to work on increasing their internally generated
revenue as the federation allocation has become unreliable to ensure
that they meet their needs.