Allocations decline as Nigeria, states and LGs share $1 billion for October


By Njirani Muchra | This Day, Nigeria December 17, 2016

Allocation to the three tiers of government for the month of November declined by N33.121 billion from N420 billion in October to N386.879 billion.

The amount includes Value Added Tax (VAT), which however recorded a gross increase of N5.958 billion, from N69.621 billion in October to N75.579 billion in November.

The Accountant General of the Federation, Ahmed Idris, who briefed journalists on behalf of the Minister of Finance, Mrs. Kemi Adeosun, at the end of the monthly Federation Account Allocation Committee (FAAC) meeting, stated that crude oil export decreased further by 0.34 million barrels while the average price of crude oil increased from $46.54 to $47.08 per barrel during the period under review.

Federation export sales revenue, he said, also declined by about $14.74 million.

“A brief force majeure was declared at Bonny Terminal while the force majeure at Forcados, Qua Oboe and Brass Terminals were still in place. Federation revenue was low as a result of if shut-in and shut-down of pipelines for repairs and maintenance due to leakages and sabotage, however, Company Income Tax (CIT) and Value (VAT) recorded marginal increases.

“The distributable statutory revenue for the month is N206.448 billion. The sum of N6.330 billion was refunded by Nigeria National Petroleum Corporation (NNPC) to federal government. There is a proposed distribution of N66.000 billion from the Excess PPT (Petroleum Profit Tax) Account. Also, exchange gain of N38/752 billion is proposed for distribution. The total revenue distributable for the current month (November) (including VAT) is N386.879 billion,” he said.

A breakdown shows that the federal government, states and local governments received N187.367 billion, N95.035 billion and N73.268 billion respectively while 13 per cent derivation fetched N18.423 billion for oil producing states.

Idris disclosed that the Excess Crude Account (ECA) stood at $2.456 billion as at December 15.

Related stories


Africa today at a glance February 25, 2017

AsokoNews Brief

Sign up for our weekly Africa Business Digest, highlighting the Top 5 stories per sector