Revenue allocation increases by N24.6bn
The Federation Account Allocation Committee, FAAC, distributed a total of N812.762 billion November 2018 revenues to the federal government, all states and local government councils in the country.
The amount which is higher than the N788.13bn shared in October was made up of distributable statutory revenue of N649.629 billion, revenue from Value Added Tax of N92.079billion, Exchange Gain of N1.055billion and Forex equalization revenue of N70.000billion.
According to the Permanent Secretary of the Federal ministry of Finance, Dr. Mahmoud Dutse, from the total amount distributed, the federal government received N326.754 billion; the States received N203.206billion; the local government councils received N153.528billion.
A total of N57.087billion was given to the oil producing States and 13percent derivation revenue, while N72.187billion went to the relevant agencies as cost of revenue collection.
Dutse who presided over the meeting said, the gross statutory distributable revenue of N649.629 billion received for the month was lower than the N682.161billion received in the previous month by N32.533billion.
From the statutory revenue of N649.629, the federal government received N280.913billion, the State Governments received N142.483 billion, the local government councils received N109.848 billion, the oil producing states received N47.882 billion as 13% derivation revenue and the relevant agencies received N68.503 as cost of collection.
The Committee however reported a significant drop in the excess crude account. About $1.63million was deducted from the account to offset the last tranche of the Paris Club obligations to the states.
The permanent secretary said, “The balance in ECA is $631million. The final payment of Paris Club refund to states was made and the figure was deducted and that’s what accounts for the difference.
“A decision was taken to make this refund and part of that decision is that the refund should be funded from the ECA. The federal Executive Council and the President approved the money.”
In the month under review, the revenue from the Companies Income Tax, CIT, increased significantly, while revenues from foreign oil and gas, domestic oil and gas, royalties, Petroleum Profit Tax, PPT, Import and Excise Duties and Value Added Tax decreased.