FAAC Disburses N652b to FG, States, LGs

July 26, 2017
FAAC disburses

By Modupe Gbadeyanka

The sum of N652.23 billion has been distributed as federal allocation for the month of June to the three tiers of government; Federal Government, State Governments and Local Government Councils in the country.

A communiqué issued by the sub-committee of Federation Accounts Allocation Committee (FAAC) of the Office of the Accountant-General of the Federation, at the end of the meeting held on Tuesday in Abuja, indicated that the gross statutory revenue received for the month is N570.584 billion, higher than the N317.562 billion received in the previous month by N253.022 billion.

In a statement released yesterday by Mrs Kenechukwu Offie, the Director Information, OAGF, revealed that the shared amount comprised the month’s statutory distributable revenue of N570.584 billion and the Value Added Tax of N81.645 billion.

Accordingly, from Net Statutory Allocation, the Federal Government received N274.893 billion representing (52.68%); States received N139.429 billion (26.72%); Local Government Councils received N107.494 billion representing (20.60%); while the Oil Producing States received N29.894 billion as 13% derivation revenue.

Furthermore, from the Revenue available from the Value Added Tax (VAT), Federal Government received N11.757 billion (15%); States received N39. 190 billion (50%) while the Local Government Councils received N27.433 (35%).

The communiqué further explained that there was a decrease in the average price of crude oil from $55.18 to $50.27 per barrel and a significant decrease in export volume by 3.20 million resulted in decreased revenue from export sales revenue increase by about $183.68 million.

There was also shut-in and shut-down of pipelines due to the activities of vandals as well as for maintenance which impacted negatively on production. Furthermore, the Force Majeure declared at the Forcados terminal since February, 2016 was still in place. Significant increases were also recorded in Companies Income Tax being the peak period for its collection.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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