FAAC: FG, States, LGs share N626.8bn

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Ahmed Idris.

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Distributable Federal Allocation for the month of March dipped by as much as N20 billion compared to February allocation, leaving the Federal Government, state and local governments to share a total of N626.827 billion, it has was gathered as Federation Account Allocation Committee, FAAC, meeting on Thursday, in Abuja.

For the month of February, the previous month, a total of N647 billion was shared after so much disagreement between state commissioners and the Federal Government over alleged non-remittances of revenue by the NNPC to the federation accounts.

But for yesterday’s distribution of the N627 billion (approximate), the states appeared to have collected their allocations and returned home meekly.

Ahmed Idris, Accountant General of the Federation, said that reconciliation on the said non-remitted money was still ongoing.

The AGF’s office acknowledged the dip in revenue, though.

Explaining the total makeup, it said that the gross statutory revenue of N480, 599 billion received for the month was lower than the N557, 943 billion received in the previous month of February by N77, 344 billion.

Crude oil export sales volume decreased by 13 percent when compared with the 5.42 million barrels from the previous month, resulting in reduced revenue from the federation crude oil exports sales by $33.58 million.

However, the average crude oil price increased from $63.08 to $65.72 per barrel.

The issues that negatively affected production were shut-ins and shutdowns at various terminals for repairs and maintenance.

There was a considerable rise in oil royalties for the month while company income tax and import duty recorded marginal increases. Value added tax decreased slightly but there was a significant drop in income from petroleum profit tax.

Still on the promised reconciliation of NNPC remittances to the federation account, Idris stated that the process was still ongoing.

States of the federation, including the Federal Capital Territory, FCT, at last month’s Federal Allocations Accounts Committee, FAAC, insisted that the Nigerian National Petroleum Corporation, NNPC, explain satisfactorily why it held back fractions of the oil remittances to the federation account even though they later accepted N647.390 billion allocations made available to them by the Ministry of Finance.

The FAAC meeting had deadlocked after state commissioners of finance had refused to collect their allocations unless the oil corporation either complete the remittances or give a satisfactory explanation on the matter.

Explaining the situation, Chairman, Commissioners of Finance Forum, Mallam Mahmoud Yunusa, said the NNPC deliberately sidelined other stakeholders in a business that belonged to all.

According to the AGF, reconciliation on the matter was ongoing.

Though he admitted that the FAAC failed to meet some milestone it initially set for this month in the reconciliation process, he explained that it would still continue as public accounting procedure was not devoid of such.


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