Tuesday, October 19, 2021

FAAC allocation increases as FG, states, LGs share N400billion

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Jaafar Jaafarhttps://dailynigerian.com/
Jaafar Jaafar is a graduate of Mass Communication from Bayero University, Kano. He was a reporter at Daily Trust, an assistant editor at Premium Times and now the editor-in-chief of Daily Nigerian.
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By Nazifi Haruna

The Federation Account Allocation Committee, FAAC, on Friday distributed the sum of N400bn to federal, state and local governments as statutory allocation for the month of December 2016.

There is an increase of N13.12billion, compared to the N386.87bn shared in the month of November, despite the force majeure at Forcados, Qua Iboe and Brass terminals that affected revenue generation and also a revenue decline of $65.4m in federation export sales due to a drop in crude oil export volume of 1.39 million barrels.

Addressing journalists after the meeting in Abuja,  the minister of Finance, Kemi Adeosun, said the N400bn was distributed under four distributable sub-heads.

READ ALSO:   Adeosun: SERAP writes NYSC, demands ‘accurate’ information

They are: statutory allocation where the sum of N224.88billion was allocated; Value Added Tax N79.27billion; exchange gain N52.84billion and; excess Petroleum Profit Tax N42.99billion.

The minister said noted that from the statutory allocations, after deducting cost of collections to the revenue generating agencies, the federal government got N105.76bn, states N53.64bn and local government councils N41.35bn.

Ms. Adeosun said the sum of N15.5bn was given to the oil producing states based on the 13 per cent derivation principle.

The minister said for VAT allocation, the federal government received N11.4billion, states N38billion while local government councils got N26.63billion.

She said during the month, the sum of N248.71billion was generated as gross statutory revenue adding that this was higher than the N240.1billion received in the previous month by N8.59billion.

READ ALSO:   VAT increase: States, LGs to get more allocation from February – AGF

Ms. Adeosun revealed that the current balance in the excess crude account stands at $2.45billion.

Also speaking to journalists, the chairman of FAAC Commissioners Forum, Mahmoud Yunusa, said the states would work with the federal government to address the current recession in the country.

Mr. Yunusa, the commissioner of Finance of Adamawa state, said that the target of the state now is to generate enough revenue internally to pay salaries, adding that the next priority would be execution of capital projects.

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