Revenue Drops By N127Bn As FG, States, LGAs Share N558bn
The total revenue accrued to the Federation Account Allocation Committee (FAAC), has dropped significantly by N127.023 billion, just as the FAAC on Tuesday, distributed N558bn to the three tiers of government for the month of September 2017.
Chairman of FAAC and Minister of Finance, Mrs. Kemi Adeosun, while addressing finance correspondents after a meeting in Abuja, said that the gross statutory revenue of N423.961bn received for the month was lower than the N550.992bn received in the previous month by N127.023bn. The minister, who was represented by the Accountant General of the Federation, Mr. Ahmed Idris said that there was a significant increase in revenue from export sales of $176.4 million, due to an increase in crude oil production by 4.12million barrels. Giving the breakdown, the minister said that the Federal Government received N210.051bn inclusive of Value Added Tax (VAT).
The state governments, he said, got a total of N140.447bn, while the local governments received a total of N107.441bn including VAT, respectively. According to the breakdown, the Federal Inland Revenue Service (FIRS) generated N97.520bn for the month of September and received its 4% cost of collection, which amounted to N3.820bn. She said the Nigeria Customs Service (NCS) generated N50.815bn for the month of September; and also took its 7% cost of collection of N3.557bn.
She said that the Department of Petroleum Resources (DPR) generated the sum of N80.361bn for the same month and also received its 4% cost of collection, which is N3.214bn. According to the minister, there was a refund of N2bn to the FIRS by the federation account allocation committee. Idris however, noted that the average price of crude oil decreased from $50.44 to $46.29bp/d.
He said that activities resumed at Forcados Terminal for the first time since February, in 2016. Idris also said that there were shut-ins and shut down at terminals for maintenance and repairs; while oil recovery recorded significant increase in the month under review, but there was considerable decline in revenue from companies income tax (CIT), petroleum profit tax (PPT), import duty VAT. Also, the distributable Statutory Revenue for the month is N423.691bn.
The total revenue distributed for the current month including VAT is N558.082bn. The Accountant General said that the Excess Crude Account stood at $2.309bn, while the Excess Petroleum Profit Tax (EPPT) account stood at $68m as at October 24, 2017. Reacting to questions, the Chairman of Finance Commissioners’ Forum and Commissioner of Finance, Adamawa State, Mr. Mahmood Saleh Yunusa, said no state is planning of taking any loan, because there had been a lot of interventions from the Federal Government to address some financial challenges. Yunusa said:
“There is no plan from state to borrow to augment financial grabs. We are looking cooperating with FG to boost internal revenue flow.”
Credit: This Day Live