The Federal Government, States and Local Government Areas (LGAs) shared N762.5 billion as federal allocation for the month of June.
Mr Ahmed Idris, the Accountant-General of the Federation (AGF), said this on Thursday in Abuja, while addressing newsmen at the end of the Federation Accounts Allocation Committee (FAAC) meeting.
He said that the gross statutory revenue of N652.9 billion received for the month was higher than the N571.7 billion received in May by N81.21 billion.
He said revenue from Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) increased significantly, Value Added Tax (VAT) increased marginally while Royalties, Import and Excise duties decreased considerably.
Idris added that the shared amount comprised the month’s statutory distributable revenue of N652.949 billion.
He also said that the gross revenue available from VAT stood at N108.6 billion as against N106.8 billion distributed in the proceeding month, resulting in an increase of N1.8 billion.
On the sharing formula, he said the Federal Government received N309.4 billion representing 52.68 per cent, while states received N201.15 billion representing 26.72 per cent.
The AGF said that local government areas received N151.3 billion representing 20.60 per cent while oil producing states received N38.7 billion as 13 per cent derivation revenue.
Idris also said that N61.91 billion was allocated as cost of collection, transfer and Federal Inland Revenue Service (FIRS) refund.
FAAC: FG, States, LGs share N606.196bn for April
The Federation Accounts Allocation Committee (FAAC) has shared N606.196 billion to the three tiers of government for the month of April.
Mr Hassan Dodo, Director of Information in the Ministry of Finance, Budget and National Planning, made this known in a statement in Abuja on Friday.
Dodo said the meeting, which held by virtual, was chaired by Dr Mahmoud Isa-Dutse, the Permanent Secretary in the ministry.
He said the amount shared included Value Added Tax (VAT), Exchange Gain, Solid Mineral Revenue, Excess Bank Charges and Excess Oil Revenue.
He explained that the Federal Government received N169.831 billion, the states got N86.140 billion while the local government councils had N66.411 billion and the oil producing states received N32.895 billion as 13 per cent derivation.
The director, however, disclosed that the cost of collection of Federal Inland Revenue Service (FIRS) Refund and Allocation to North East Development Commission and Transfer to Excess Oil Revenue was N15.134 billion.
“The Gross Revenue available from the VAT for April 2020 was N94.495 billion as against the N120.268 billion distributed in the preceding month of March, resulting in a decrease of N25.772 billion.
“The distribution is as follows; Federal Government got N13.182 billion, the States received N43.941 billion, Local Government Councils took N30.758 billon.
“The distributed Statutory Revenue of N370.411billion received for the month was lower than the N597.676 billion received for the previous month by N227.265 billion,” he stated.
Edited By: Wale Ojetimi (NAN)
FAAC disburses N1.95tn in Q1, says NEITI report
The Nigerian Extractive Industries Transparency Initiative (NEITI) says the Federation Accounts Allocation Committee (FAAC) disbursed N1.95 trillion to the federal, state, local governments and other statutory agencies in the first quarter of 2020.
NEITI disclosed this in its quarterly report released in Abuja, on Monday.
It said the disbursements showed that N791.4 billion went to the federal government, N669 billion was shared by the states and about N395 billion was shared by the 774 local government areas.
It noted that the balance went to the North East Development Commission, the Excess Crude Account, Federal Inland Revenue Service (FIRS), Nigeria Custom Service (NCS) and the Department of Petroleum Resources.
The report also noted that the first quarter 2020 FAAC disbursements were the highest first quarter disbursements since 2014.
“Total disbursements were N1.648 trillion in Q1, 2015, N1.132 trillion in Q2 2016, N1.411 trillion in Q1 of 2017, N1.938 trillion in Q1 2018, and N1.929 trillion in Q1 2019,” it said.
“While total disbursements in Q1 2020 were slightly higher than Q1 2019 and Q1 2018, disbursements to the three tiers of government in Q1 2020 were slightly lower than Q1 2019 and Q1 2018.
“This is due to transfers to other accounts in Q1 2020 which were not done in either Q1 2019 or Q1 2018.
“These include allocations to the North East Development Commission and transfer to Excess Crude Account,” the report revealed.
It also explained that total FAAC allocations during the period under review comprised gross disbursements to the federal government, states, local government councils and 13 per cent derivation.
It also covered cost of collections by the Nigerian Customs Service, the Federal Inland Revenue Service, the Department of Petroleum Resources and other allied handling charges.
The report noted that from the previous years, with the exception of 2018, the general trend since 2015 had been that total disbursements fell in the second quarters, before rising in the third quarters.
On FAAC disbursements to states between January and March, it said that there was a wide disparity between states as Osun State with the lowest allocation received N6.44 billion and Delta State with the highest disbursement received N52.03 billion, a difference of 708 per cent.
The report also disclosed that Delta State’s net FAAC disbursements were higher than the combined total net disbursements of N50.67 billion of the six lowest receiving states.
It named the states to include Osun, Cross River, Plateau, Ogun, Ekiti and Gombe.
“Further analysis revealed that combined disbursements to four states of Delta, Akwa Ibom, Rivers and Bayelsa with the highest net FAAC disbursements were higher than the combined net disbursements for the 17 states with the lowest disbursements.
“The combined total net disbursement to these four states was N167.76 billion.
“This figure is higher than the combined total of N159.99 billion received by the 17 lowest receiving states.
“The states are Osun, Cross River, Plateau, Ogun, Ekiti, Gombe, Zamfara, Kwara, Nassarawa, Ebonyi, Taraba, Benue, Adamawa, Bauchi, Abia, and Kogi),” the report said.
It added that 31 states received less than N20 billion as total net FAAC disbursements in the first quarter of this year while only five states received more than N20 billion.
The states, it said, are Lagos (N26.23 billion), Bayelsa (N35.14 billion), Rivers (N39.99 billion), Akwa Ibom (N40.61 billion), and Delta (N52.03 billion) respectively.
Furthermore, the report disclosed a wide disparity in the amounts deducted from the states as their debt obligations.
“For instance, Lagos State had the highest deductions of N14.92 billion, while Yobe State had the lowest deductions of N820.18 million,” it said.
On prospects of FAAC disbursements for the rest of the year as a result of the impact of COVID-19, it said, “In light of the ‘double whammy’ of declining oil demand and oil prices as a result of the COVID-19 pandemic, government revenue would likely continue to fall in subsequent months.
“As global crude oil prices plummet in the midst of the global oil supply glut arising from lockdown of economic activities in many countries of the world, all tiers of government will struggle to fund their 2020 budgets.”
It added that the projected revenue for the federal government for the year stands at N8.42 trillion, comprising oil revenue of N2.64 trillion, non-oil revenue of N1.81 trillion, and revenue from other sources of N3.97 trillion.
It noted that oil revenue remained the dominant single source of revenue, with the figure of N2.64 trillion making up 31.35 per cent of total projected revenue.
“The interesting point to note is that while the share of oil revenue represents the direct revenue, there are also indirect sources of revenue from oil.
“These include signature bonus and renewals and share of dividend from NLNG. In addition, taxes and customs duties, which are based on economic activities will suffer in the light of the lockdown of the major activity hubs of the country,” it said.
It welcomed the proactive measures already been taken by the federal government in this direction.
According to the report, the measures include the approval to withdraw 150 million dollars from the Stabilisation Fund to supplement FAAC disbursements.
Edited By: Salif Atojoko (NAN)
FAAC shares N780.926bn revenue to FG, States, LGs
The Federation Accounts Allocation Committee (FAAC) has shared N780.926 billion as March Federation Account Revenue to the Federal, States, Local Governments and relevant Agencies in the country.
Mr Henshaw Ogubike, Director, Information, Press and Public Relations in the Office of Accountant General of the Federation, made this known in Abuja on Wednesday.
Ogubike said the N780.926 billion shared comprised Statutory Revenue, Value Added Tax (VAT) and Exchange Gain.
He stated that the gross statutory revenue for the month of March was N597.676 billion, adding that this was higher than the N466.058 billion received in February and January by N131.618 billion.
He disclosed that VAT yielded gross revenue of N120.268 billion in March as against N99.552 billion in February, resulting in an increase of N20.716 billion.
He added that the sum of N62.928 billion was available from Exchange Gain in the month under review.
The director explained that out of N780.926 billion total revenue, the Federal Government received N264.330 billion, the State Governments got N181.487 billion, and N135.950 billion was given to Local Government Councils.
According to him, Oil Producing States received N38.751 billion as 13 per cent derivation revenue, while the cost of revenue collection by Revenue Agencies and allocation to NEDC is N160.408 billion.
Giving the break down, Ogubike noted that the Federal Government received N217.773 billion from the gross statutory revenue of N597.676 billion, the State Governments received N110.457 billion and the Local Government Councils got N85.158 billion.
He further disclosed that the sum of N32.299 billion was given to the relevant States as 13 per cent derivation revenue and N151.989 billion was cost of revenue collection by Revenue Agencies and allocation to NEDC.
The director stated that Federal Government also received N16.777 billion from VAT revenue of N120.268 billion available in the month of March, while the State Governments got N55.925 billion and the Local Government Councils received N39.147 billion.
He added that the cost of collection by Revenue Agencies and allocation to NEDC was N8.419 billion.
“The Federal Government received N29.780 billion, the State Governments got N15.105 billion, the Local Government Councils received N11.645 billion and the Oil Producing States received N6.452 billion from the total revenue of N62.982 billion available from Exchange Gain.
“In the month of March, Petroleum Profit Tax (PPT), Companies Income Tax(CIT), Import and Excise Duties, Oil and Gas Royalties and VAT all recorded substantial increases” he added
Ogubike disclosed that the FAAC meeting for the month of April , where the March revenues were shared, was held by virtual conferencing.
Meanwhile, the director announced that the balance in the Excess Crude Account (ECA) stood at 72.221 million dollars.
Edited By: Wale Ojetimi (NAN)
President Buhari approves withdrawal of $150m from NSIA stabilisation fund to support June FAAC disbursement
President Muhammadu Buhari has approved the withdrawal of 150 million dollars from the Nigeria Sovereign Investment Authority (NSIA) Stabilization Fund to support the June 2020 FAAC disbursement.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed disclosed this during a news conference on the fiscal stimulus measures in response to the COVID-19 pandemic and oil prices fiscal shock in Abuja on Monday.
Ahmed said that the fund was also to address these emerging fiscal risks that the pandemic had caused.
She noted that the Stabilization Fund was created for such emergencies and was to be utilised for this purpose while the government was also exploring other options to augment FAAC disbursements over the course of the 2020 fiscal year.
She explained that based on the fiscal assumptions underpinning the 2020 Appropriation Act, monthly Federation Account Allocation Committee (FAAC) disbursements to the Federal and State Governments were projected at N888.5 billion.
She said however, due to the significant drop in international oil prices, FAAC monthly disbursements had declined in recent months to N716.3 billion in January and N647.4 billion in February 2020.
According to her, their experience shows that monthly average FAAC receipts must average at least N650 billion for the Federal and State Governments to meet their current obligations. Unfortunately, they project that monthly receipts may decline to below N400 billion, over the next three to six months.
“Mr President has also approved that the Federal Ministry of Finance, Budget and National Planning should engage with the CBN to agree on a Debt and Interest Moratorium for States on Federal Government and CBN-funded loans, in order to create fiscal space for the States, given the projected shortfalls in FAAC allocations.
“Accordingly, once monthly average FAAC receipts fall below a specific threshold, interest and capital payments by States shall be suspended till monthly average FAAC receipts exceed the threshold.
“The details of this Moratorium will be expeditiously worked out with a view to submitting the final proposals for Mr. President’s guidance and final approvals.
“This intervention is vital to create fiscal space for the States, as they deal with the health and economic impact of the crisis. States will also be encouraged to explore similar arrangements for their outstanding debts to Commercial Banks”she explained.
Edited By: Sadiya Hamza
FAAC shares N581.5bn for February
FAAC shares N581.5bn for February: The Federation Accounts Allocation Committee (FAAC) has shared the sum of N581.566 billion to the Federal, States and Local Governments for February.
Mr Henshaw Ogubike, Director Press and Public Relations in the Office of the Accountant-.General of the Federation made this known in a statement in Abuja on Monday.
Ogubike said this was announced after a rescheduled meeting of the FAAC held in Abuja.
He explained that the N581.566 billion comprised Statutory Revenue, Value Added Tax (VAT), Exchange Gain, and revenue from Forex Equalization Account.
Ogubikeķ said the Federal Government received N236.118 billion, the State Governments got N159.010 billion while the Local Government Councils received N119.305 billion.
He further disclosed that the Oil Producing States received N45.310 billion as 13 per cent derivation revenue while the Revenue Generating Agencies received N21.822 billion as cost of revenue collection.
The official said the gross statutory revenue for the month of February was N466.058 billion, adding that it was lower than the N525.253 billion received in January 2020 by N59.195 billion.
Ogubike noted that for the month of February, the gross revenue available from VAT was N99.552 billion as against N104.758 billion in the previous month, resulting in a decrease of N5.206 billion.
He added that Exchange Gain yielded a total revenue of N0.757 billion, and revenue from Forex Equalisation Account was N15.199 billion.
“A breakdown of the distribution showed that from the gross statutory revenue of N466.058 billion, the Federal Government received N214.915 billion, the State Governments got N109.008 billion and the Local Government Councils received N84.040 billion.
“The Oil Producing States received N43.242 billion as 13 per cent derivation revenue and the Revenue Generating Agencies received N14.853 billion as cost of collection.
“From the VAT revenue of N99.552 billion, the Federal Government received N13.888 billion, the State Governments received N46.292 billion, the Local Government Councils got N32.404 billion and the Revenue Generating Agencies was given N6.969 billion as cost of revenue collection.
“The Forex Equalisation Account revenue was N15.199 billion. The Federal Government received N6.966 billion, the State Governments got N3.533 billion, the Local Government Councils received N2.724 billion and the Oil Producing States had N1.976 billion,” he explained.
The director said the committee also announced that the balance in the Excess Crude Account (ECA) was 72.221 million dollars.
Edited By: Ese E. Ekama
FAAC meeting ends inconclusively
The monthly Federation Account Allocation Committee (FAAC) meeting on Wednesday ended inconclusively.
The Director of Information, Ministry of Finance, Budget and National Planning, Mr. Hassan Dodo, anounced this after the meeting in Abuja.
He said “gentlemen of the press, there is no going to be usual briefing today because the meeting is inconclusive”
The director did not give any reason for not concluding the FAAC monthly meeting.
Nigeria News Agency reports that the FAAC meeting which was well attended by members lasted for several hours.
Financial experts had predicted a low revenue for February and March owing to the outbreak of coronavirus which had affected oil prices across the globe.
The international benchmark Brent crude traded at 26.01 dollars on Wednesday and fell to its lowest level since September 26, 2003.
Edited By: Wale Ojetimi
FAAC: FG, states, LGs share N716.2bn for month of December
The Federation Accounts Allocation Committee (FAAC) has shared N716.298 billion to the three tiers of government for the month of December 2019.
The Permanent Secretary, Ministry of Finance, Budget and National Planning, Alhaji Isa Dutse disclosed this while addressing newsmen on the outcome of the meeting in Abuja on Thursday.
Dutse explained that the amount shared comprised revenue from Value Added Tax (VAT), Exchange Gain and the Statutory Revenue.
He said the Federal Government received N287.929 billion, the State Governments got N191.302 billion, and the Local Government Councils received N143.698 billion.
He added that the Oil Producing States received N50.279 billion as 13 per cent derivation revenue and the Revenue Generating Agencies received N43.089 billion as cost of revenue collection.
He said the gross statutory revenue for the month of December 2019 was N600.314 billion, adding that it was higher than the N491.875 billion received in the previous month by N108.439 billion.
The permanent secretary stated that the gross revenue available from VAT was N 114.805 billion as against N90.166 billion distributed in the previous month resulting in an increase of N24.639 billion.
According to him, exchange Gain yielded a total revenue of N1.179 billion.
Dutse disclosed that there was increase in the revenue from FIRS, especially from the non oil revenue, which he said was about 48 per cent increase.
Edited by: Felix Ajide
FAAC: FG, states, LGs share N635.8bn in November
Alhaji Isa Dutse, Permanent Secretary, Ministry of Finance, Budget and National Planning, said on Wednesday in Abuja that the Federal, States and Local Governments had shared the sum of N635.8 billion for the month of November.
Dutse disclosed this while addressing newsmen after the Federation Account Allocation Committee (FAAC), meeting.
He explained that the amount shared included Value Added Tax (VAT), exchange gain and Forex Equalisation.
According to him, the gross statutory revenue generated for the month was N491.8 billion, which was lower than N596.04 billion received in the previous month, with a difference of N104.1 billion.
The permanent secretary said that the Federal Government got N242.2 billion, States N159.9 billion, while Local Governments received N120.2 billion inclusive of VAT.
Dutse said that N42.1 billion was allocated to some states as 13 per cent derivation of mineral revenues.
According to him, from the Forex Equalisation revenue of N53 billion, the Federal Government received N24.290 billion, States got N12.321 billion, while the Local Government Councils received N9.499 billion.
He said that the sum of N6.8 billion was given to the Oil Producing States as 13 per cent derivation revenue.
Dutse stated that in the month of November, revenues from Companies Income Tax(CIT), VAT, import duty, Royalties and Petroleum Profit Tax (PPT) decreased significantly, while Excise Duty increased marginally.
Edited by: Emmanuel Nwoye and Ephraims Sheyin
FAAC: FG, States, LGs share N702.058bn for month of October
The Federation Accounts Allocation Committee (FAAC) on Wednesday shared a total of N702.058 billion to the three tiers of government for the month of October.
This was announced in a communique read by Accountant General of the Federation, Mr Ahmed Idris after the FAAC meeting in Abuja.
Idris said that N702.058 billion comprised revenue from Value Added Tax (VAT), Exchange Gain and Gross Statutory Revenue.
He explained that the Federal Government received N295.7billion, the States got N192.697 billion, and the Local Governments received N144.9 billion.
He stated that the oil Producing states received N49.1 billion as 13 per cent derivation revenue and the Revenue Generating Agencies got N19.472 billion as cost of revenue collection.
He, however, disclosed that the gross statutory revenue for the month of October 2019 was N596.041 billion
He added that it was lower than the N599.701 billion received in the previous month by N3.660 billion.
He said the revenue from VAT was N 104.910 billion as against N92.874 billion disbursed in the preceding month with an increase of N12.036 billion recorded.
According to him, the exchange gain yielded a total revenue of N1.107 billion.
He said as at 20th November, the balance in the Excess Crude Account was 324 million dollars.
He further stated that from VAT, the Federal Government received N15.107 billion, the States got N50.357 billion, the Local Governments received N35.250 billion while the Revenue Generating Agencies had N4.196 billion.
He acknowledged that for the month of October, revenues from Companies Income Tax (CIT), VAT and import duty increased remarkably, while Royalties, Petroleum Profit Tax (PPT), and Excise Duty decreased significantly.
Idris noted that the committee was glad with the increase in revenue and expressed hope for its sustainability.
Edited by Felix Ajide (NAN)
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- Nigerian electricity supply industry recorded ₦119.46bn deficit in Q4 2019, says NERC
- California says film, TV production can resume June 12
- COVID-19: Ekiti Assembly marks low-key 365 days in office
- 8.10m MWh electricity generated in Q4 2019 – NERC
- Taliban outfit sets free 36 Afghan detainees
- Thai restaurants required not to serve alcoholic beverages on premises
- Osun records 2 new COVID-19 cases
- Feature: Thousands march in Australian cities over treatment of Indigenous Peoples
- Indonesia’s COVID-19 cases surpass 30,000 with death toll exceeding 1,800
- NGO empowers 23,817 young girls, women in Kaduna
- 5.2-magnitude quake hits Edinburgh of Seven Seas, Saint Helena — USGS
- COVID-19 : Expert warns against overdose of vitamin C
- COVID 19: Umahi threatens shutdown of Ebonyi international market over precautionary measures non-compliance
- Philippines reports 714 new COVID-19 cases, total surge to 21,340
- Over 3 dozens killed in Afghanistan amid efforts to initiate intra-Afghan talks
- AfDB approves $288.5m for Nigeria COVID-19 Response Support Programme
- COVID-19: Nigeria Private jet operators lose over $5bn – official
- Russia’s COVID-19 cases exceed 450,000
- Death toll in India’s chemical factory blast rises to 10
- Australia China Friendship Society calls on Aussie politicians to mend relationship with China
- Libya’s UN-backed gov’t reports new advances against rivals
- Facebook says it found no foreign interference in Floyd protests
- After Trump tweet debate, Facebook to review policies on posts
- NOA DG lauds staff for dedication to fight against COVID-19
- AfDB Probe: Group tells Board of Governors not to compromise
- Uganda reopens national parks for tourism amid COVID-19
- 36 killed in lightning strikes across Myanmar in 5 months
- Mongolia’s capital holds annual book festival to promote reading amid pandemic
- Biden clinches Democratic bid to face Trump in election
- United States protests against police brutality met with excessive police force
- Bolsonaro threatens Brazilian withdrawal from WHO, following United States
- Pakistan’s confirmed COVID-19 cases top 90,000
- COVID-19: Sokoto discharges all 101 patients, records 14 deaths