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FAAC Plans New Revenue Template for NNPC, Shares N715b

By Dipo Olowookere

A new revenue reporting template is being prepared by the Federation Accounts Allocation Committee (FAAC) for the Nigerian National Petroleum Corporation (NNPC) and other members of the revenue sharing committee.

Minister of Finance, Mrs Kemi Adeosun, at a news briefing on Thursday in Abuja, disclosed that the new template would address the key areas of disputes between Governors of the 36 states of the federation and the state-owned oil firm.

According to her, the committee constituted to work on the new template should submit a draft before the next meeting for review.

There had been disputes between the Governors and the NNPC over the amount remitted by the latter.

President Muhammadu Buhari even had to intervene when the states failed to accept what was remitted by the NNPC, causing series of deadlocks in some FAAC meetings.

“We are working with the Department of Petroleum Resources (DPR), the office of Accountant General of the Federation (OAGF), NNPC and all the stakeholders to develop a new template,” Mrs Adeosun told newsmen at the briefing after the FAAC meeting on Thursday.

The Minister, who doubles as Chairman of FAAC, also said for the revenue generated in July 2018, FAAC shared the sum of N714.8 billion to the three tiers of government.

The amount comprised statutory revenue of N598 billion, Value Added Tax (VAT) of N79.8 billion, foreign exchange (Forex) equalisation of N25.9 billion and additional withheld funds by the Nigerian National Petroleum Corporation (NNPC) of N12 billion.

She further said from the revenue, federal government received N298.3 billion, states got N183.8 billion, while local governments were given N138.96 billion.

Also from the money, oil producing states received N49.7 billion as 13 percent derivation revenue for the month, while revenue generating agencies and statutory transfers got N44 billion.

She further said the sum of N25 billion was transferred to the excess crude oil revenue account, leaving the balance in the account at about $2.332 billion, while excess petroleum profit tax (PPT) account currently holds about $133 million.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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