The Federation Accounts Allocation Committee, FAAC, has distributed the sum of N635.554bn to the three tiers of government as allocation for January 2018.The Meeting which was presided over by the Accountant General of the Federation, Ahmed Idris, said that the gross revenue of N538.908 billion received for the month was lower than the N540.446 billion received in the previous month by N1.538 billion.
According to him, operational challenges caused a decrease in crude oil export by 0.36 million barrels which reduced revenue from export sales for the federation by $113.86 million.
However, the Accountant General said that the average price of crude oil increased from $56.83 to $57.71 per barrels during the period.
Giving the breakdown, the Federal Government received a total of N263.283 billion including VAT.
The State governments received a total of NN143.902 billion VAT inclusive while the Local Government Councils got a total of N129.985 billion VAT inclusive.
Other major issues that impacted negatively on operations were the Shut-ins and Shut-downs of production at various terminals for repairs and the Force Majeure declared at Bonny Terminal that was still in place during the period under review, he said.
There were significant increases in Oil Royalty and Value Added Tax (TAT), also revenue from Import Duty increased marginally.
Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) recorded decreases.
The distributed Statutory Revenue for the month is N538.908 billion bringing the total revenue distributed for the month including VAT to N635.554 billion.
He disclosed that the total balance of money in the Excess Crude Account (ECA) stood at $2.317 billion while the Excess Petroleum Profit Tax (PPT) stood at $133 million.
The oil producing states received a total of N52.042 billion as 13 per cent derivation of mineral revenue from a total of N400.325 billion generated from crude oil sale for the month.
Meanwhile, the Chairman of Finance Commissioners’ Forum, Mahmoud Sale Yunusa said that the state’s are satisfied with the amount of money distributed to the three tiers for the January allocation.
Yunusa said that by March 2018 they expect increased revenue adding ” By March we expect increased revenue and there will be a great chunk of oil revenue.”
